Synchrony (SYF) Renew Commitment to Pursue Technology Investment – September 2, 2022

Synchrony Financial (SYF Free report) recently expanded its long-term financial 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 investment aims to expand the availability of 360 smart beds presented by Sleep Number to win more customers.

For more than five years, the 360 ​​smart bed platform has been delivering personalized insights and backed with science-based features to deliver quality sleep and better lives to millions.

The renewed tie-up sees SYF and Sleep Number expand consumer payment options, increase personalization and expand access to credit for customers. Such investments will expand the reach of Sleep Number’s cutting-edge sleep and wellness solutions through increased availability of its smart beds to more customers.

The recent initiative reinforces Synchrony Financial’s efforts to further strengthen its nearly two-decade relationship with Sleep Number. The move will also allow the partners to continue to leverage their deep consumer insights and digital power to facilitate the 360 ​​smart bed purchasing process and provide improved credit decision-making and seamless payment methods to customers.

Such commitments to increase the availability of 360 smart beds seem to be the need of the hour, given that consumers generally associate quality sleep with their overall well-being.

Synchrony Financial’s remarkable effort to continue to provide convenient financing options across industries is clearly reflected through this latest partnership. And Sleep Number, through its shared goal with SYF to innovate, build digital capabilities and use increased customer and credit insights to improve the customer experience, appears to be the perfect partner to complement the latter’s move.

SYF has continuously pursued a series of acquisitions and renewed alliances with several payment solutions partners in the United States to expand and diversify its portfolio. SYF’s list of partners continues to grow, with more than 40 partners added or renewed in the first half of 2022, including Sweetwater, Fleet Farm, Mitsubishi Electric and Suzuki.

A differentiated and digitally enabled product suite built through these continuous efforts of growth through acquisitions or partnerships combined with significant investments enables Synchrony Financial to provide a safe and secure shopping experience to its consumers at every stage of the purchase process. This, in turn, is likely to cement strong customer relationships, giving way to strengthened credit lines, increased repeat sales and greater lifetime customer value for SYF.

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


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Zacks Rank and Key Picks

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

Carter Bankshares’ bottom line beat estimates in three of the past four quarters and missed the target once, with an average surprise of 13.50%. The Zacks Consensus Estimate for CARE’s 2022 earnings suggests an improvement of 70.1%, while the same for revenue suggests a rise of 8.2% from the corresponding figures reported a year ago. The consensus estimate for CARE’s 2022 earnings has moved 5.2% north over the past 30 days.

Amalgamated Financial’s earnings beat estimates in each of the past four quarters, averaging 22.60%. The Zacks Consensus Estimate for AMAL’s 2022 earnings suggests an improvement of 42.4%, while the same for revenue suggests a rise of 24.1% from the corresponding figures reported a year ago. The consensus estimate for AMAL’s 2022 earnings has moved north by 4.3% over the past 60 days.

East West Bancorp’s bottom line beat estimates in three of the past four quarters and missed once, with an average surprise of 4.74%. The Zacks Consensus Estimate for EWBC’s 2022 revenue suggests an improvement of 27.7%, while the same for revenue suggests a rise of 26.4% from the comparable figures reported a year ago. EWBC’s 2022 earnings consensus estimate has moved 9% north over the past 60 days.

Shares of Carter Bankshares and Amalgamated Financial are up 0.3% and 33.1%, respectively, over the past six months. Shares of East West Bancorp, however, lost 13.6% over the same time period.

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