Yahoo Finance Here's Why Synchrony (SYF) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Synchrony (SYF)
Synchrony Financial, one of the nation’s premier consumer financial services companies, offers a wide range of credit products through a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health and wellness providers. Synchrony Financial focuses on generating financial flexibility for its customers by offering private label credit cards, Dual Card, and general purpose co-branded credit cards, promotional financing and installment lending, and loyalty programs.
SYF sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Financial - Miscellaneous Services industry's P/E of 10.7X, shares of Synchrony are trading at a forward P/E of 8X. SYF also has a PEG Ratio of 1.1, a Price/Cash Flow ratio of 6.9X, and a Price/Sales ratio of 0.8X.
A company's earnings performance is important for value investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for SYF, while the Zacks Consensus Estimate has increased $0.02 to $5.62 per share. SYF also holds an average earnings surprise of 1.1%.
Investors should take the time to consider SYF for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Synchrony Financial (SYF) : Free Stock Analysis Report
