Synchrony Stock Eyes Best Day Ever

SYF stock is higher after earnings and a legal update

Lillian Currens
Jan 23, 2019 at 9:59 AM
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The shares of Synchrony Financial (NYSE:SYF) are up 10.7% at $29.40 in early trading, after the company's fiscal fourth-quarter earnings exceeded analyst expectations. Plus, Walmart (WMT) dropped its lawsuit against the consumer lending concern, and Synchrony extended its strategic partnership with Walmart-owned Sam's Club. Today, SYF stock is pacing for its biggest one-day jump ever.

SYF stock touched a record low of $21.77 on Dec. 26, but has since been on the rebound -- up roughly 35% since bottoming out. The shares are now on pace to top their 120-day moving average for the first time since September. 

A round of upbeat analyst attention could be in store for rebounding SYF stock, with eight doling out a tepid "hold" rating, compared to just six giving it a "buy" or better. Meanwhile, the consensus 12-month price target of $34.47 represents just a 17% premium to current levels. 

Recent options buyers could be cheering today's rally. Synchrony currently sports a 10-day call/put volume ratio of 18.08 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), indicating traders have bought to open over 18 SYF calls for every put in the past two weeks. What's more, this ratio sits higher than 98% of all other readings from the past year, hinting at a much healthier-than-usual appetite for bullish bets over bearish ahead of earnings. 


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