With a market cap of $21.7 billion, Synchrony Financial (SYF) is a consumer financial services company focused on delivering digitally enabled product suites. The Stamford, Connecticut-based company offers a diverse group of industries, including digital, health and wellness, retail, telecommunications, home, auto, outdoor, and pet, with its expertise.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Synchrony Financial fits this criterion perfectly. The company provides a range of credit products through financing programs and innovative digital capabilities to address their specific needs and deliver seamless, omnichannel experiences.

The consumer credit company has fallen 21.3% from its 52-week high of $70.93. Over the past three months, shares of SYF have edged down 16.2%, lagging behind the S&P 500 Index’s ($SPX) 4.4% decrease.

On a YTD basis, SYF has dropped 14.1%, underperforming the SPX’s 1.8% decline during the same time period. However, over the last 52 weeks, Synchrony Financial has improved 35.2%, exceeding the S&P 500’s 10.7% return.

Despite the recent downturn, the stock has been trading above its 50-day and 200-day moving averages since last year.

Despite reporting a better-than-expected Q4 2024 EPS of $1.91, Synchrony Financial shares fell 4.6% on Jan. 28 due to disappointing revenue and a weak 2025 outlook. Its adjusted revenue came in at $4.6 billion, falling short of Street forecasts, while the company also guided 2025 net revenue down to $15.2 billion - $15.7 billion. Additionally, a 3% drop in purchase volume signaled weaker consumer spending, adding to investor concerns.

Further, in comparison, rival Ally Financial Inc. (ALLY) has outpaced SYF on a YTD basis, gaining 3.9%. However, shares of ALLY are down 5.1% over the past 52 weeks, lagging behind SYF.

While SYF has outperformed the broader market over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering the stock, and currently, it is trading below the mean price target of $76.48.