Amazed this stock trades where it does given the authorized buyback and yield. But forward looking, the expected recession is weighing on this.
Waiting to add more at <$30. Not far off.
N
My comment from yesterday was deleted. SYF repurchased 15 million shares between 14th and 18th April. Buyback at low prices is good capital allocation discipline.
N
Could be time to sell soon enough. Superfast on a single news, even though we might have a global recession. Things have changed in the last couple of years.
J
Barclays is buying a $3.8 billion portfolio of Gap retail credit cards from Synchrony Financial... any thoughts? Is this good for SYF?
N
I valued their equity at 24 billion. I am back in at this price.
J
Yes, earnings are not growing fast, but in this crazy world of inflation, interest rate increases, Ukraine, and even more dangerous former prez followers, a company with a nice steady net inc improvement might start to look like a nice respite in a stock market storm.
w
Have you guys ever heard of (http://Themaxgains.tech)? The picks on there are way better than SYF
W
Our clients use this, sale dropped about 30%! Up 1 month high already!!
Nooot for me!
R
Colleagues, Friends, Ladies and Dudes: Wouldn't we be better off with the prior President than the current President? The prior President seemed a lot better to me.
H
Customer base? MA and V are holding up much better in the face of fears of higher rates slowing consumption and increasing write-offs. Why is this? Is their customer base lower income? Other reasons?
N
ugh...I bought in a $49 a share...going to hold but it's disheartening.
D
Would like to see mgmt use a large portion of that buyback at these levels!
J
6 years ago at the IPO this company had a market cap of $20B. Today it has a market cap of $20B. Fantastic job by management!!
L
I don't get it; 32% roe, less than 2 times book, PEG less than 1, and still trading near 52 week low... Makes no sense.....
T
lost an entire year's gain
J
Thought it was bad...but not this bad. Hopefully the stock price won't go below $0.
A
Guys any thoughts on the react price actions. I'm still long, and will continue to be unless something like fraud happens in the company, I'm pretty confident. Just some weird stuff going on. Stock didn't participate when bonds rallied up to 1.7 something and instead has been correcting. I assume this correction will actually be beneficial. Many funds, especially momentum funds, have to rebalance next week and I think this recent move from 42.50 to 39 is just giving these guys a better entry point. Still maintain my price target of somewhere between $60 and $70 by the end of the year.
A
This is a $60-70 stock this year easily and I'm looking for triple digits within 2 years. When you look at the investment thesis with this stock, the list goes on and on.
1. It's breaking out of a 3 year pattern where it found resistance at the same level we are now in arguably the best shape it has ever been in.
2. The stock and financials in general has underperformed the market for too long. It doesn't matter what percent its up from November, relative to the market it still has a long way to go.
3. The stock is tied in with the economic recovery and especially the consumer, providing loans and credit to every single sector. As consumer credit improves and stimulus helps bridge the gap the company will only generate more revenue.
4. As the company is extremely tied in with the consumer, it had to hold tons of money for reserve, even more than J.P. Morgan and Goldman. As credit and the consumer improve, just think about how much cash they can release back into their operations.
5. Synchrony Financial is clearly shareholder friendly, looking to boost the value of the people truly believe in the company with the 1.6 Million buyback. Additionally, when they release their reserve money, look for them to buyback even more stock as it trades extremely cheaply.
6. Just look at the 10 Y T-Bill, all financials will benefit from rising rates.
7. Unlike many financial stocks, Synchrony actually focused on establishing organic growth for the company post-pandemic. The Venmo card it launched with PayPal essentially links it with the largest virtual bank and the millions of customers PayPal has. This provides a nice runway for double digit growth in the next 2-3 years and sustained single digit growth following that.
8. A majority of the stores who issue cards with Synchrony have contracts with it extending past 2025. We know for certain that this thing is going to be a cash cow till at least 2025.
9. The only things that will stop this stock is if either the consumer doesn't recover fully or the economic growth we are going to see for the next 2-3 years stalls and hits a wall. I significantly doubt both. With all the stimulus in the market and the surprisingly positive February jobs report, we are heading to one of the strongest consumers we have seen. Furthermore, an accommodative Fed that would that sell their soul to achieve the employment rate that they wish should dispel any fear of a weak consumer. The more likely outcome for some of these financial, energy, and industrial stocks is if economic growth stall and would likely lead to a sell-off. Then stock picking will be very important, and if you own this one, you're going to be in a good spot.
One more thing, I see that a lot of people were talking about firms upgrading the stock and giving price targets, that doesn't matter. What are they going to do if the stock runs to $60, downgrade it? The thing trades near 9 times forward earnings and PEG of just under 0.4. Forget about what these firms say, everyone who is in this stock is a smart investor, not one of these reddit investors who could care less about valuations and fundamental analysis. Stick with your gut and believe in your pick. Sit back and enjoy the ride with this one, its going to be a nice 4-5 years with this stock.
c
cost per share 14.4-19.8 = -5.4 , so they give you five bucks when you buy this share and it earns five dollars a year. It is a good day to be alive and looking for deals. I'd love to put my whole portfolio in this but there so much else that is a fantastic deal. Come what may this will be harder and harder to beat as the best deal on the street.
B
I am laughing in buying this business that will generate profits for years to come with increase interest charges if people is out of work temporarily. The interest charge from the increase that will well offset any loan loss provision.
But forward looking, the expected recession is weighing on this.
Waiting to add more at <$30. Not far off.
Nooot for me!
1. It's breaking out of a 3 year pattern where it found resistance at the same level we are now in arguably the best shape it has ever been in.
2. The stock and financials in general has underperformed the market for too long. It doesn't matter what percent its up from November, relative to the market it still has a long way to go.
3. The stock is tied in with the economic recovery and especially the consumer, providing loans and credit to every single sector. As consumer credit improves and stimulus helps bridge the gap the company will only generate more revenue.
4. As the company is extremely tied in with the consumer, it had to hold tons of money for reserve, even more than J.P. Morgan and Goldman. As credit and the consumer improve, just think about how much cash they can release back into their operations.
5. Synchrony Financial is clearly shareholder friendly, looking to boost the value of the people truly believe in the company with the 1.6 Million buyback. Additionally, when they release their reserve money, look for them to buyback even more stock as it trades extremely cheaply.
6. Just look at the 10 Y T-Bill, all financials will benefit from rising rates.
7. Unlike many financial stocks, Synchrony actually focused on establishing organic growth for the company post-pandemic. The Venmo card it launched with PayPal essentially links it with the largest virtual bank and the millions of customers PayPal has. This provides a nice runway for double digit growth in the next 2-3 years and sustained single digit growth following that.
8. A majority of the stores who issue cards with Synchrony have contracts with it extending past 2025. We know for certain that this thing is going to be a cash cow till at least 2025.
9. The only things that will stop this stock is if either the consumer doesn't recover fully or the economic growth we are going to see for the next 2-3 years stalls and hits a wall. I significantly doubt both. With all the stimulus in the market and the surprisingly positive February jobs report, we are heading to one of the strongest consumers we have seen. Furthermore, an accommodative Fed that would that sell their soul to achieve the employment rate that they wish should dispel any fear of a weak consumer. The more likely outcome for some of these financial, energy, and industrial stocks is if economic growth stall and would likely lead to a sell-off. Then stock picking will be very important, and if you own this one, you're going to be in a good spot.
One more thing, I see that a lot of people were talking about firms upgrading the stock and giving price targets, that doesn't matter. What are they going to do if the stock runs to $60, downgrade it? The thing trades near 9 times forward earnings and PEG of just under 0.4. Forget about what these firms say, everyone who is in this stock is a smart investor, not one of these reddit investors who could care less about valuations and fundamental analysis. Stick with your gut and believe in your pick. Sit back and enjoy the ride with this one, its going to be a nice 4-5 years with this stock.