Stamford, Connecticut-based Synchrony Financial (SYF) is a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Valued at $20.5 billion by market cap, the company provides a range of credit products such as credit cards, commercial credit products, and consumer installment loans through programs established with a diverse group of national and regional retailers, local merchants, manufacturers, and more.

Shares of this consumer credit company have outperformed the broader market over the past year. SYF has gained 21.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 9.2%. However, in 2025, SYF stock is down 14.7%, compared to SPX’s 3.7% decline on a YTD basis. 

Zooming in further, SYF’s outperformance is also apparent compared to the Financial Select Sector SPDR Fund (XLF). The exchange-traded fund has gained about 20.6% over the past year. However, the ETF’s 3.2% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.

Synchrony's strong performance is fueled by interest on credit card balances and consumer loans. With the Federal Reserve pausing rate cuts, loan yields are expected to increase, boosting net interest income. Despite some consumer sentiment fluctuations, spending remains steady in key sectors like travel and healthcare. A strong labor market supports repayment capabilities, keeping Synchrony's loan portfolio healthy. Strategic acquisitions and partnerships are driving digital transformation and product diversification, with rapid expansion of the CareCredit platform in the healthcare sector.

On Apr. 22, SYF shares closed up more than 2% after reporting its Q1 results. Its EPS of$1.89 exceeded Wall Street expectations of $1.63. The company’s net interest income was $4.5 billion, falling short of Wall Street forecasts of $4.6 billion.

For the current fiscal year, ending in December, analysts expect SYF’s EPS to grow 16.7% to $7.69 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 23 analysts covering SYF stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and one “Strong Sell.”

This configuration is slightly less bullish than two months ago, with 14 analysts suggesting a “Strong Buy.” 

On Apr. 25, Truist Financial Corporation (TFC) kept a “Hold” rating on SYF and lowered the price target to $57, implying a potential upside of 2.8% from current levels.

The mean price target of $62.23 represents a 12.2% premium to SYF’s current price levels. The Street-high price target of $88 suggests a notable upside potential of 58.7%.