Synchrony Financial SYF recently announced a multi-year extension of its partnership with DICK'S Sporting Goods, Inc. DKS. This move highlights that both companies will continue enhancing services and experiences for the athlete community. Synchrony has been in partnership with DKS for the past two decades.
This partnership is expected to build on the success of the DKS’s ScoreRewards Credit Card program. This credit card program is intended to improve athletes' loyalty toward DKS's products by offering various offers, rewards, and digital account management services for their ScoreRewards cards. Athletes will be able to continue using their cards in-store and online at more than 800 retail locations of DKS.
The extension of this partnership bodes well for SYF as it will be able to solidify its position in the retail finance space. This move is expected to prove beneficial for SYF’s Lifestyle division, whose purchase volume declined 3.9% year over year in the first half of 2024. As of June 30, 2024, Lifestyle accounted for 6.6% of SYF’s total loan receivables. Renewing existing partnerships and entering into new ones is likely to benefit this metric in the future.
Moves like this will aid SYF in bringing more business to its merchant network and help it build loyalty through attractive products and customer experience. SYF undertakes several partnerships to enhance its offerings and attract customers. Its total loan receivables improved 7.9% year over year in the first half of 2024. It expects receivables growth to continue to moderate during the second half of 2024.
Synchrony’s Price Performance
Shares of Synchrony have gained 13.7% in the past six months against the industry’s 4.4% decline.
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SYF’s Zacks Rank & Key Picks
Synchrony currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Finance space may look at some better-ranked players like Jackson Financial Inc. JXN and WisdomTree, Inc. WT. Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Jackson Financial’s current-year earnings is pegged at $18.49 per share, which indicates 44% year-over-year growth. It witnessed two upward estimate revisions in the past 60 days against no downward movement. The consensus mark for JXN’s current-year revenues indicates a 116.7% surge from a year ago.
The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 67.6% year-over-year growth. During the past two months, WT has witnessed three upward estimate revisions against none in the opposite direction. It beat earnings estimates twice in the past four quarters and met on the other occasions, with an average surprise of 5.9%.
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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Synchrony Financial (SYF) : Free Stock Analysis Report
Jackson Financial Inc. (JXN) : Free Stock Analysis Report
WisdomTree, Inc. (WT) : Free Stock Analysis Report
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