Why Synchrony (SYF) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 7.3X for the current fiscal year compared to the Financial - Miscellaneous Services industry's P/E of 11.4X. Additionally, SYF has a PEG Ratio of 1 and a Price/Cash Flow ratio of 6.4X. Value investors should also note SYF's Price/Sales ratio of 0.8X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 12 analysts revised their earnings estimate higher in the last 60 days for SYF, while the Zacks Consensus Estimate has increased $0.20 to $5.72 per share. SYF also holds an average earnings surprise of 4.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding SYF to their portfolios.
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
Synchrony Financial (SYF) : Free Stock Analysis Report
