Synchrony Financial - AI Stock Analysis

Analysis generated November 4, 2025

Synchrony Financial (NYSE: SYF) is one of the largest providers of private label credit cards in the United States. The company operates through three primary business segments: Retail Card, Payment Solutions, and CareCredit. Synchrony provides a range of specialized financing programs to consumers in the retail, health, travel, and home channels. The company collaborates with a wide array of partners including retailers, merchants, manufacturers, buying groups, and industry associations.

Fundamental Analysis

Revenue for the last quarter was $777 million. This represents a significant decrease of 83.51% compared to the previous quarter. This sharp decline indicates a need for concern as it suggests potential issues with revenue generation. Furthermore, compared to the same quarter last year, there is a decrease of 86.84%, further exacerbating concerns about the company's revenue performance.

Despite the decrease in revenue, net income for the last quarter was $1.1 billion, which is an increase of 16.07% compared to the previous quarter. This is a positive sign of growth and indicates that the company is effectively managing its costs. Compared to the same quarter last year, there is an even more impressive increase of 39.16%, suggesting strong year-over-year growth.

EBITDA for the last quarter was $913 million, representing a decrease of 158.79% compared to the previous quarter. This drastic decrease is worrisome as EBITDA is a key indicator of a company's operating performance. Compared to the same quarter last year, EBITDA decreased by 139.27%, which is similarly troubling.

The current P/E ratio is 8.16, which may be considered low, potentially indicating that the stock is undervalued. A low P/E ratio can signal a bullish outlook if the market is underestimating the company's future earnings potential.

It is also important to note that in the last couple of months, there have been a couple of company insiders selling their stock. This is generally viewed as a bearish signal as insiders typically sell shares when they anticipate that the stock price may decline or if there are underlying issues within the company.

Technical Analysis

Today’s stock price is $74.01, which represents a 3.90% increase compared to a month ago. This indicates a positive short-term trend. Compared to a year ago, the stock price has increased by 32.02%, suggesting a strong positive long-term trend.

Despite the positive movements in stock price, the trend is currently bearish. The current SMA10 is 74.25, which is lower than the previous SMA10 of 74.33, suggesting a potential downward trend in price movement.

The RSI is 68.6, which is in a neutral condition. An RSI around this level typically indicates that the stock is neither overbought nor oversold, suggesting that the current price level is stable.

Alternative Data Analysis

Starting with job postings and employee sentiment, Synchrony Financial has 350 open positions according to data from the most popular job boards. This number is up by 11% in the last couple of months, indicating that the company is looking to grow and expand, which is a potentially healthy sign.

The business outlook among employees at Synchrony Financial is neutral, suggesting that while there may be positive growth, there are no significant worries about the company's future among its employees.

Regarding customer acquisition, Synchrony Financial has an estimate of 40 million visitors to their webpage, with no meaningful increase or decrease in the last couple of months. This stability in webpage traffic suggests consistent interest in the company's offerings.

For customer engagement, Synchrony Financial has 18,000 followers on Instagram, with an increase of 4% in the last couple of months, indicating growing interest. Conversely, their Twitter page has 14,000 followers, with no increase in the last couple of months, indicating stagnant interest.

Alternative data from AltIndex's AI score, which tries to predict a company's stock price based on fundamental, technical, and alternative data analysis, gives Synchrony Financial an AI score of 57. This score suggests a hold signal.

Conclusion

Synchrony Financial showcases a mix of positive and concerning indicators. The significant decrease in revenue and EBITDA is concerning, despite a robust increase in net income and a low P/E ratio indicating potential undervaluation. The technical indicators show a mixed trend with positive long-term growth but a bearish short-term trend.

Alternative data also presents a mixed perspective, with a respectable increase in job postings signaling expansion, yet stagnant webpage traffic and Twitter engagement suggesting no significant change in interest. The AI score of 57 supports a neutral outlook.

Recommendation: Based on the analysis, the recommendation for Synchrony Financial would be to hold the stock. The mixed signals across various indicators suggest caution, but the potential for future growth and low valuation may present opportunities for long-term investors.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.