Synchrony Financial Stock Buy Hold or Sell Recommendation

SYF Stock  USD 65.99  0.85  1.30%   
Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Synchrony Financial is 'Strong Buy'. Macroaxis provides Synchrony Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SYF positions.
  
Check out Synchrony Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Synchrony Stock please use our How to Invest in Synchrony Financial guide.
Note, we conduct extensive research on individual companies such as Synchrony and provide practical buy, sell, or hold advice based on investors' constraints. Synchrony Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.

Execute Synchrony Financial Buy or Sell Advice

The Synchrony recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Synchrony Financial. Macroaxis does not own or have any residual interests in Synchrony Financial or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Synchrony Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Synchrony FinancialBuy Synchrony Financial
Strong Buy

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Synchrony Financial has a Risk Adjusted Performance of 0.1506, Jensen Alpha of 0.1895, Total Risk Alpha of 0.0769, Sortino Ratio of 0.2588 and Treynor Ratio of 0.1848
Macroaxis provides unbiased trade recommendation on Synchrony Financial that should be used to complement current analysts and expert consensus on Synchrony Financial. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Synchrony Financial is not overpriced, please validate all Synchrony Financial fundamentals, including its revenue, short ratio, five year return, as well as the relationship between the cash per share and beta . Given that Synchrony Financial has a number of shares shorted of 10.74 M, we advise you to double-check Synchrony Financial market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Synchrony Financial Trading Alerts and Improvement Suggestions

Synchrony Financial appears to be risky and price may revert if volatility continues
Over 99.0% of the company shares are owned by institutional investors
On 15th of November 2024 Synchrony Financial paid $ 0.25 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: Synchrony Is Up 1.87 percent in One Week What You Should Know

Synchrony Financial Returns Distribution Density

The distribution of Synchrony Financial's historical returns is an attempt to chart the uncertainty of Synchrony Financial's future price movements. The chart of the probability distribution of Synchrony Financial daily returns describes the distribution of returns around its average expected value. We use Synchrony Financial price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Synchrony Financial returns is essential to provide solid investment advice for Synchrony Financial.
Mean Return
0.56
Value At Risk
-2.58
Potential Upside
4.38
Standard Deviation
2.98
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Synchrony Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Synchrony Stock Institutional Investors

Shares
Dimensional Fund Advisors, Inc.2024-09-30
6.5 M
Boston Partners Global Investors, Inc2024-09-30
6.4 M
Aqr Capital Management Llc2024-06-30
5.7 M
Norges Bank2024-06-30
5.2 M
Goldman Sachs Group Inc2024-06-30
5.2 M
Allianz Asset Management Ag2024-06-30
4.7 M
Southpoint Capital Advisors Lp2024-09-30
4.6 M
Ameriprise Financial Inc2024-06-30
4.6 M
Jacobs Levy Equity Management, Inc.2024-09-30
4.4 M
Vanguard Group Inc2024-09-30
49.6 M
Capital World Investors2024-09-30
43.1 M
Note, although Synchrony Financial's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Synchrony Financial Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash2.3B(1.0B)(2.9B)1.7B4.0B4.2B
Free Cash Flow9.0B7.5B7.1B6.7B8.6B6.8B
Depreciation367M383M390M419M458M286M
Other Non Cash Items608M720M522M3.9B6.7B7.0B
Net Income3.7B1.4B4.2B3.0B2.2B2.7B
End Period Cash Flow12.6B11.6B8.7B10.4B14.4B10.0B
Investments327M(108M)(4.3B)(9.7B)(14.2B)(13.5B)
Change Receivables(391M)339M424M(197M)(226.6M)(215.2M)
Net Borrowings(4.1B)(4.1B)(1.3B)(329M)(296.1M)(310.9M)
Dividends Paid581M562M542M476M448M465.4M
Change To Netincome4.2B4.7B945M3.0B2.7B3.0B

Synchrony Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Synchrony Financial or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Synchrony Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Synchrony stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.19
β
Beta against Dow Jones2.96
σ
Overall volatility
3.01
Ir
Information ratio 0.14

Synchrony Financial Volatility Alert

Synchrony Financial has relatively low volatility with skewness of 3.63 and kurtosis of 21.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Synchrony Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Synchrony Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Synchrony Financial Fundamentals Vs Peers

Comparing Synchrony Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Synchrony Financial's direct or indirect competition across all of the common fundamentals between Synchrony Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Synchrony Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Synchrony Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Synchrony Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Synchrony Financial to competition
FundamentalsSynchrony FinancialPeer Average
Return On Equity0.21-0.31
Return On Asset0.0273-0.14
Profit Margin0.35 %(1.27) %
Operating Margin0.46 %(5.51) %
Current Valuation24.61 B16.62 B
Shares Outstanding389.34 M571.82 M
Shares Owned By Insiders0.53 %10.09 %
Shares Owned By Institutions99.47 %39.21 %
Number Of Shares Shorted10.74 M4.71 M
Price To Earning5.83 X28.72 X
Price To Book1.74 X9.51 X
Price To Sales2.85 X11.42 X
Revenue7.66 B9.43 B
Gross Profit8.3 B27.38 B
EBITDA4.12 B3.9 B
Net Income2.24 B570.98 M
Cash And Equivalents11.96 B2.7 B
Cash Per Share26.55 X5.01 X
Total Debt15.98 B5.32 B
Debt To Equity5.66 %48.70 %
Book Value Per Share37.92 X1.93 K
Cash Flow From Operations8.59 B971.22 M
Short Ratio3.38 X4.00 X
Earnings Per Share7.70 X3.12 X
Price To Earnings To Growth1.81 X4.89 X
Target Price63.06
Number Of Employees20 K18.84 K
Beta1.59-0.15
Market Capitalization25.69 B19.03 B
Total Asset117.48 B29.47 B
Retained Earnings18.66 B9.33 B
Annual Yield0.02 %
Five Year Return2.49 %
Note: Disposition of 21934 shares by Curtis Howse of Synchrony Financial at 55.13 subject to Rule 16b-3 [view details]

Synchrony Financial Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Synchrony . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Synchrony Financial Buy or Sell Advice

When is the right time to buy or sell Synchrony Financial? Buying financial instruments such as Synchrony Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Synchrony Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Investor Favorites
Investor Favorites Theme
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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When determining whether Synchrony Financial is a strong investment it is important to analyze Synchrony Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Synchrony Financial's future performance. For an informed investment choice regarding Synchrony Stock, refer to the following important reports:
Check out Synchrony Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more detail on how to invest in Synchrony Stock please use our How to Invest in Synchrony Financial guide.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Synchrony Financial. If investors know Synchrony will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Synchrony Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.311
Dividend Share
1
Earnings Share
7.7
Revenue Per Share
22.405
Quarterly Revenue Growth
0.116
The market value of Synchrony Financial is measured differently than its book value, which is the value of Synchrony that is recorded on the company's balance sheet. Investors also form their own opinion of Synchrony Financial's value that differs from its market value or its book value, called intrinsic value, which is Synchrony Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Synchrony Financial's market value can be influenced by many factors that don't directly affect Synchrony Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Synchrony Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Synchrony Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Synchrony Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.