Synchrony Financial (SYF - Free Report) recently announced its partnership with Albertsons Companies, Inc. in a bid to expand its CareCredit network. This partnership will allow CareCredit cardholders to use their cards for select health and wellness products at nearly 2,200 Albertsons Companies stores, including popular grocery chains like Safeway, Vons, and Jewel-Osco.
With this new collaboration, SYF is aiming to expand the use of its CareCredit card in grocery stores, as health and wellness are not just constrained to a doctor’s office. By expanding the payment options for health and wellness products, SYF is enhancing its offerings and tapping into a broader range of consumer needs.
CareCredit cards can be used to purchase items like pharmacy, select personal care, beauty and hair care, pet food supplies, and over-the-counter health products. This would not only provide greater convenience but also enhance customer loyalty to both Synchrony and Albertsons Companies stores.
This move aligns with Synchrony’s long-term strategy to deepen its presence in the health and wellness sector. The wider adoption of CareCredit cards is anticipated to fuel revenues in the future. With SYF’s CareCredit expansion, it is evident that the company is focused on expanding the business with attention paid to health systems. Health and Wellness segment purchase volume improved 1.8% in the second quarter of 2024, while the same in all other segments declined year over year.
SYF pointed out in the second quarter that customers are cutting back on discretionary spending, but they continue to spend on their health and wellness needs. Hence, this partnership may lead to increased contributions from this segment and a rise in the loans receivables portfolio. This might also aid in partially offsetting a decline in customer spending on bigger ticket items, like jewelry, vision and furniture.
Synchrony’s Price Performance
Shares of Synchrony have gained 12.7% in the past six months compared with the industry’s 4.7% rise.
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SYF’s Zacks Rank & Key Picks
Synchrony currently carries a Zacks Rank #4 (Sell).
Investors interested in the broader Finance space may look at some better-ranked players like Aflac Incorporated (AFL - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) . 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 Aflac’s current-year earnings is pegged at $6.73 per share, which indicates 8% year-over-year growth. It witnessed seven upward estimate revisions in the past 30 days against no downward movements. AFL beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 8.2%.
The Zacks Consensus Estimate for Brown & Brown’s 2024 earnings indicates 31% year-over-year growth. During the past two months, BRO has witnessed six upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 9.8%.
The Zacks Consensus Estimate for Arthur J. Gallagher’s current-year earnings suggests a 16% year-over-year jump. During the past two months, AJG has witnessed six upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues indicates 14.5% growth from a year ago.
Synchrony Financial (SYF - Free Report) recently announced its partnership with Albertsons Companies, Inc. in a bid to expand its CareCredit network. This partnership will allow CareCredit cardholders to use their cards for select health and wellness products at nearly 2,200 Albertsons Companies stores, including popular grocery chains like Safeway, Vons, and Jewel-Osco.
With this new collaboration, SYF is aiming to expand the use of its CareCredit card in grocery stores, as health and wellness are not just constrained to a doctor’s office. By expanding the payment options for health and wellness products, SYF is enhancing its offerings and tapping into a broader range of consumer needs.
CareCredit cards can be used to purchase items like pharmacy, select personal care, beauty and hair care, pet food supplies, and over-the-counter health products. This would not only provide greater convenience but also enhance customer loyalty to both Synchrony and Albertsons Companies stores.
This move aligns with Synchrony’s long-term strategy to deepen its presence in the health and wellness sector. The wider adoption of CareCredit cards is anticipated to fuel revenues in the future. With SYF’s CareCredit expansion, it is evident that the company is focused on expanding the business with attention paid to health systems. Health and Wellness segment purchase volume improved 1.8% in the second quarter of 2024, while the same in all other segments declined year over year.
SYF pointed out in the second quarter that customers are cutting back on discretionary spending, but they continue to spend on their health and wellness needs. Hence, this partnership may lead to increased contributions from this segment and a rise in the loans receivables portfolio. This might also aid in partially offsetting a decline in customer spending on bigger ticket items, like jewelry, vision and furniture.
Synchrony’s Price Performance
Shares of Synchrony have gained 12.7% in the past six months compared with the industry’s 4.7% rise.
Image Source: Zacks Investment Research
SYF’s Zacks Rank & Key Picks
Synchrony currently carries a Zacks Rank #4 (Sell).
Investors interested in the broader Finance space may look at some better-ranked players like Aflac Incorporated (AFL - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Arthur J. Gallagher & Co. (AJG - Free Report) . 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 Aflac’s current-year earnings is pegged at $6.73 per share, which indicates 8% year-over-year growth. It witnessed seven upward estimate revisions in the past 30 days against no downward movements. AFL beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 8.2%.
The Zacks Consensus Estimate for Brown & Brown’s 2024 earnings indicates 31% year-over-year growth. During the past two months, BRO has witnessed six upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 9.8%.
The Zacks Consensus Estimate for Arthur J. Gallagher’s current-year earnings suggests a 16% year-over-year jump. During the past two months, AJG has witnessed six upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues indicates 14.5% growth from a year ago.
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