U.S. Markets close in 5 hrs 24 mins
  • S&P 500

    3,653.58
    +13.11 (+0.36%)
     
  • Dow 30

    29,236.82
    +11.21 (+0.04%)
     
  • Nasdaq

    10,824.53
    +87.02 (+0.81%)
     
  • Russell 2000

    1,688.95
    +14.02 (+0.84%)
     
  • Crude Oil

    80.71
    -0.52 (-0.64%)
     
  • Gold

    1,681.00
    +12.40 (+0.74%)
     
  • Silver

    19.15
    +0.44 (+2.34%)
     
  • EUR/USD

    0.9781
    -0.0038 (-0.3912%)
     
  • 10-Yr Bond

    3.7140
    -0.0330 (-0.88%)
     
  • Vix

    30.86
    -0.98 (-3.08%)
     
  • GBP/USD

    1.1113
    -0.0011 (-0.0967%)
     
  • USD/JPY

    144.5710
    +0.1280 (+0.0886%)
     
  • BTC-USD

    19,580.64
    +591.16 (+3.11%)
     
  • CMC Crypto 200

    447.10
    +3.67 (+0.83%)
     
  • FTSE 100

    6,871.84
    -9.75 (-0.14%)
     
  • Nikkei 225

    25,937.21
    -484.84 (-1.83%)
     

Synchrony (SYF) Renews Tie-Up to Pursue Technology Investments

·4 min read

Synchrony Financial SYF recently expanded its long-term financing collaboration with Minnesota-based sleep and wellness technology company Sleep Number. As part of this alliance, the companies will make joint investments as planned. The investments aim to expand the availability of 360 smart beds unveiled by Sleep Number to win more customers.

For more than five years, the 360 smart-bed platform offers customized insights and is backed with science-based features to provide quality sleep and better living to millions.

The renewed tie-up sees SYF and Sleep Number planning to broaden consumer payment choices, increase personalization and widen credit accessibility to customers. Such investments will expand the reach of the cutting-edge sleep and wellness solutions of Sleep Number through increased availability of its smart beds to more customers.

The recent initiative reinforces Synchrony Financial’s efforts in further strengthening its nearly two-decade relationship with Sleep Number. The move will also enable the partners to continue utilizing their profound consumer insights and digital prowess to ease the purchasing process of the 360 smart beds and bring about enhanced credit decisioning and seamless customer payment methods.

Such tie-ups to bolster the availability of 360 smart beds seem the need of the hour, considering that consumers usually link quality sleep to their overall well-being.

Synchrony Financial’s notable endeavor to continue delivering convenient financing options across varied industries is clearly reflected through this latest partnership. And Sleep Number, via its shared aim with SYF to innovate, upgrade digital capabilities and leverage increased customer and credit insights to improve customer experience, seems to be the perfect partner to complement the latter’s move.

SYF is steadily pursuing a series of acquisitions and renewal of alliances with several payment solutions partners throughout the United States to broaden and diversify its portfolio. The list of SYF’s partners is continually increasing, with more than 40 partners being added or relationships being renewed with in the first half of 2022, including Sweetwater, Fleet Farm, Mitsubishi Electric and Suzuki.

A differentiated and digitally-enabled product suite built through these continual growth-related efforts via buyouts or partnerships coupled with substantial investments empowers Synchrony Financial to provide a safe and secure shopping experience to its consumers across every stage of the purchasing process. This, in turn, is likely to cement solid customer relationships, giving way to bolstered credit lines, increased repeat sales and a greater customer lifetime value for SYF.

Shares of Synchrony Financial have lost 17.6% in the past six months compared with the industry’s decline of 17.2%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Synchrony Financial currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Finance space are Carter Bankshares, Inc. CARE, Amalgamated Financial Corp. AMAL and East West Bancorp, Inc. EWBC. While Carter Bankshares currently flaunts a Zacks Rank #1 (Strong Buy), Amalgamated Financial and East West Bancorp carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Carter Bankshares outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 13.50%. The Zacks Consensus Estimate for CARE’s 2022 earnings suggests an improvement of 70.1%, while the same for revenues suggests growth of 8.2% from the respective year-ago reported figures. The consensus mark for CARE’s 2022 earnings has moved 5.2% north in the past 30 days.

Amalgamated Financial’s earnings outpaced estimates in each of the trailing four quarters, the average being 22.60%. The Zacks Consensus Estimate for AMAL’s 2022 earnings suggests an improvement of 42.4%, while the same for revenues suggests growth of 24.1% from the corresponding year-ago reported figures. The consensus mark for AMAL’s 2022 earnings has moved north by 4.3% in the past 60 days.

The bottom line of East West Bancorp outpaced estimates in three of the last four quarters and missed the same once, the average surprise being 4.74%. The Zacks Consensus Estimate for EWBC’s 2022 earnings suggests an improvement of 27.7%, while the same for revenues suggests growth of 26.4% from the comparable year-ago reported figures. The consensus mark for EWBC’s 2022 earnings has moved 9% north in the past 60 days.

Shares of Carter Bankshares and Amalgamated Financial have gained 0.3% and 33.1%, respectively, in the past six months. However, the East West Bancorp stock has lost 13.6% in the same time frame.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
East West Bancorp, Inc. (EWBC) : Free Stock Analysis Report
 
Synchrony Financial (SYF) : Free Stock Analysis Report
 
Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report
 
Carter Bankshares, Inc. (CARE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research