Is it time to Buy before this week’s earning report Synchrony Financial (NYSE:SYF)

Earnings results for Synchrony Financial (NYSE:SYF)

Synchrony Financial is expected* to report earnings on 07/20/2021 before market open. The report will be for the fiscal Quarter ending Jun 2021. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.51. The reported EPS for the same quarter last year was $0.06.

Synchrony Financial last issued its quarterly earnings results on April 27th, 2021. The financial services provider reported $1.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.50 by $0.23. The firm earned $3.44 billion during the quarter, compared to analyst estimates of $2.69 billion. Synchrony Financial has generated $2.60 earnings per share over the last year and currently has a price-to-earnings ratio of 12.6. Synchrony Financial has confirmed that its next quarterly earnings report will be published on Tuesday, July 20th, 2021. Synchrony Financial will be holding an earnings conference call on Tuesday, July 20th at 8:00 AM Eastern. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Synchrony Financial (NYSE:SYF)

12 Wall Street analysts have issued ratings and price targets for Synchrony Financial in the last 12 months. Their average twelve-month price target is $53.45, predicting that the stock has a possible upside of 19.32%. The high price target for SYF is $63.00 and the low price target for SYF is $32.00. There are currently 1 hold rating and 11 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Synchrony Financial has received a consensus rating of Buy. The company’s average rating score is 2.92, and is based on 11 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $53.45, Synchrony Financial has a forecasted upside of 19.3% from its current price of $44.80. Synchrony Financial has been the subject of 8 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Synchrony Financial (NYSE:SYF)

Synchrony Financial pays a meaningful dividend of 1.88%, higher than the bottom 25% of all stocks that pay dividends. Synchrony Financial has only been increasing its dividend for 1 years. The dividend payout ratio of Synchrony Financial is 33.85%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Synchrony Financial will have a dividend payout ratio of 16.03% next year. This indicates that Synchrony Financial will be able to sustain or increase its dividend.

Insiders buying/selling: Synchrony Financial (NYSE:SYF)

In the past three months, Synchrony Financial insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $432,178.00 in company stock. Only 0.44% of the stock of Synchrony Financial is held by insiders. 90.81% of the stock of Synchrony Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Synchrony Financial (NYSE:SYF

Earnings for Synchrony Financial are expected to decrease by -7.73% in the coming year, from $5.95 to $5.49 per share. The P/E ratio of Synchrony Financial is 12.62, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 21.54. The P/E ratio of Synchrony Financial is 12.62, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 18.95. Synchrony Financial has a PEG Ratio of 0.37. PEG Ratios below 1 indicate that a company could be undervalued. Synchrony Financial has a P/B Ratio of 2.19. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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