Synchrony Financial (SYF), valued at a market cap of $27.3 billion, is a leading consumer financial services company specializing in offering a broad range of financing products and services. Headquartered in Stamford, Connecticut, Synchrony operates through three core business segments: Retail Card, Payment Solutions, and CareCredit.
SYF shares have significantly outpaced the broader market over the past 52 weeks. SYF has surged 75.2% over this time, while the broader S&P 500 Index ($SPX) has rallied 20.6%. In 2025, shares of SYF are up 3.8%, compared to SPX’s 2.5% gain on a YTD basis.
Focusing more closely, Synchrony Financial has also surpassed the Financial Select Sector SPDR Fund's (XLF) 32.5% return over the past 52 weeks.
On January 28, Synchrony Financial reported its fourth-quarter earnings, which sent its shares down 4.6%. The company delivered earnings of $1.91 per share, surpassing Wall Street's expectations, but revenue of $5.7 billion fell short of consensus estimates, driving the fall in its prices. Interest and fees on loans rose 3% year-over-year to $5.5 billion, driven by growth in average loan receivables. Despite this, average active accounts declined 2% year-over-year to 70.3 million, while deposits increased 1% to $82.1 billion during the quarter. Further, SYF returned $197 million to shareholders through $100 million in share repurchases and $97 million in common stock dividends.
For the current fiscal year, ending in December 2025, analysts expect SYF’s EPS to grow 13.1% year-over-year to $7.45. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than a month ago, with 15 “Strong Buy” ratings on the stock.
On Jan. 30, Truist Financial Corporation (TFC) analyst Brian Foran raised Synchrony Financial's price target to $77 from $72 and maintained a “Buy” rating. The update follows SYF's Q4 earnings beat, improved expense and credit outlook, and guidance for a slightly lower RSA-to-average loans ratio, as highlighted in a research note.
SYF’s mean price target of $78.05 implies a potential upside of 15.6% from the current price levels. The Street-high target of $88 represents a premium of 30.4%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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