Synchrony Financial

Synchrony partners with retailers and healthcare providers to offer branded credit cards and financing at the point of sale — think store credit cards at checkout or payment plans for dental work through CareCredit. They make money by charging interest on unpaid balances and collecting merchant fees. The company also operates a consumer banking division that takes deposits to fund its lending operations [Yahoo Finance].

Synchrony Financial is a consumer credit company that issues private-label credit cards and installment loans through partnerships with retailers like American Eagle, Dick's Sporting Goods, and healthcare providers under the CareCredit brand [Yahoo Finance]. The company is financially healthy with a market cap of $23.3B and trades at a very low 7.2x P/E ratio, but faces headwinds from declining revenue (-7.9% year-over-year) and a wave of insider selling in early March [Yahoo Finance] [SEC Form 4]. Major institutional holders including Capital World Investors and BlackRock reduced their stakes last quarter, signaling caution despite the favorable interest rate environment [EODHD].

Synchrony is profitable and trades cheaply, but revenue is shrinking and debt quality is a concern in this economic cycle.