Synchrony Financial's Stock Performing Better Than Dow Jones Index?
Synchrony Financial (SYF), a prominent player in the stock market today, has been making significant strides in the financial sector. With a market capitalization of $27.8 billion, SYF has been trading above its 50-day and 200-day moving averages since May. The company's shares have been on a steady upward trajectory, surging 17.7% year-to-date (YTD) and 56.5% over the past year, outpacing the Dow Jones Industrial Average (DOWI) which rose 11.2% and 9.4% respectively over the same periods. This strong performance has seen SYF shares trading 1.1% below from their 52-week high of $77.41.
SYF's market leadership is fueled by its vast partner network, comprising national retailers, local merchants, and healthcare providers. The company's robust digital platform, on which it has been investing heavily in digital transformation, has undoubtedly played a significant role in its growth.
SYF's Q2 earnings report, released on Jul. 22, saw the company's net interest income for the quarter slightly ahead of the forecasted $4.50 billion, at $4.52 billion. This was supported by higher loan balances and resilient consumer spending. The company's EPS for Q2 was $2.50, surpassing the Wall Street estimate of $1.72. As a result, SYF shares rose 1% on Jul. 22 following the earnings report.
Analysts covering SYF have a 'Moderate Buy' consensus rating, with the mean price target of SYF at $79.25, suggesting a potential upside of 3.6% from current price levels.
Comparatively, American Express Company (AXP), another major player in the stock market, has had a 15.1% rise on a YTD basis and 30.3% gains over the past 52 weeks. However, these figures lag behind SYF's performance.
It is worth noting that all information and data in this article is solely for informational purposes. The search results do not provide specific information about which shareholders held stock positions in Synchrony Financial and American Express Company in July 2022.
Over the past three months, SYF stock has gained 24.5%, indicating a continued positive trend. With its strong performance, robust digital strategy, and market leadership, SYF appears to be a stock worth watching in the coming months.
Disclosure: Kritika Sarmah did not have positions in any of the securities mentioned in the article on the date of publication.
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