Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Synchrony (SYF) or American Express (AXP). But which of these two companies is the best option for those looking for undervalued stocks?
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Synchrony Financial remains a Buy, supported by improved credit quality, strong net interest margins, and aggressive share buybacks. Synchrony's upgraded customer base has led to lower delinquencies and charge-offs, while purchase volumes are rising. Earnings per share are projected to grow in 2025 and 2026, with a 2026 P/E of 7.6 and continued capital returns via buybacks and dividends.
Synchrony Financial (NYSE:SYF ) Q3 2025 Earnings Call October 15, 2025 8:00 AM EDT Company Participants Kathryn Miller - Senior Vice President of Investor Relations Brian Doubles - President, CEO & Director Brian Wenzel - Executive VP & CFO Conference Call Participants Terry Ma - Barclays Bank PLC, Research Division Ryan Nash - Goldman Sachs Group, Inc., Research Division John Pancari - Evercore ISI Institutional Equities, Research Division Mihir Bhatia - BofA Securities, Research Division Robert Wildhack - Autonomous Research US LP Mark DeVries - Deutsche Bank AG, Research Division Donald Fandetti - Wells Fargo Securities, LLC, Research Division John Hecht - Jefferies LLC, Research Division Jeffrey Adelson - Morgan Stanley, Research Division Presentation Operator Good morning, everyone. Welcome to the Synchrony Financial Third Quarter 2025 Earnings Conference Call.
SYF's Q3 earnings jump 47% on stronger purchase volume and efficiency gains, easily surpassing profit and revenue estimates.
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SYF's Q3 results will likely benefit from wider margins and lower charge-offs, boosting chances of another earnings beat.
Besides Wall Street's top-and-bottom-line estimates for Synchrony (SYF), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended September 2025.
Synchrony (SYF) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Synchrony Financial is rated a buy due to stable asset quality, NIM expansion potential, and attractive valuation despite recent stock gains. SYF benefits from proactive pricing changes and improved credit quality, with sustainable additional income and lower delinquency ratios supporting a positive outlook. Growth has lagged due to high-interest rates and tighter lending, but partnerships with Amazon Pay, PayPal, and Walmart/OnePay could drive future digital growth.
Investors with an interest in Financial - Miscellaneous Services stocks have likely encountered both Synchrony (SYF) and Blackstone Inc. (BX). But which of these two stocks is more attractive to value investors?
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