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Synchrony Collaborates With Daybreak, Expands CareCredit Offering

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Synchrony Financial (SYF - Free Report) recently announced its partnership with Daybreak, a provider of at-home sleep health solutions. This partnership allows customers to access flexible financing via Synchrony’s CareCredit card to purchase Daybreak’s FDA-cleared sleep apnea devices and at-home diagnostic kits. This collaboration will last three years, ending March 31, 2027.

This move bodes well for SYF as the critical issue of sleep disorders affects around 50-70 million Americans. Traditional in-lab sleep studies often involve significant out-of-pocket expenses, creating barriers for uninsured individuals seeking care. By combining Daybreak’s accessible and cost-effective solutions with CareCredit's financing options, Synchrony is making it easier for consumers to prioritize their sleep health.

The initiative aligns with Synchrony’s strategy to expand its health and wellness offerings, tapping into a growing market that views quality sleep as a foundation for overall well-being. Integrating Daybreak’s solutions into its portfolio enhances the utility of the CareCredit card while diversifying Synchrony’s wellness offerings, including partnerships with other sleep health brands.

The partnership demonstrates that SYF aims to expand its CareCredit offerings to new customers with attention paid to health systems. Health and Wellness accounted for 17.3% of the total interest and fees on loans of SYF in the third quarter of 2024.

Moves like this should aid SYF with higher period-end loan receivables and interest and fees on loans. This is a time-opportune move on SYF’s part, as the purchase volumes of its Health and Wellness segment declined 3% year over year in the third quarter of 2024.

Synchrony’s Price Performance

Shares of Synchrony have gained 56.9% in the past six months compared with the industry’s 22.5% growth.

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SYF’s Zacks Rank & Other Key Picks

Synchrony currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader Finance space are ProAssurance Corporation (PRA - Free Report) , Kemper Corporation (KMPR - Free Report)  and CNO Financial Group, Inc. (CNO - Free Report) . ProAssurance sports a Zacks Rank #1, while Kemper and CNO Financial currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ProAsssurance’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed the mark once, the average surprise being 61.5%. The Zacks Consensus Estimate for PRA’s 2024 earnings is pegged at 80 cents per share. A loss of 14 cents per share was incurred in the prior year. The consensus mark for PRA’s earnings has moved 5.3% north in the past seven days.

Kemper’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, met once and missed the other time, with an average surprise of 10.5%. The Zacks Consensus Estimate for KMPR’s 2024 earnings indicates an 824.3% year-over-year rise. Its revenues for 2024 are projected to be $4.6 billion. The consensus mark for KMPR’s earnings has moved 6.8% north in the past 30 days.

CNO Financial’s earnings surpassed estimates in three of the last four quarters and missed once, with an average surprise of 24.5%. The Zacks Consensus Estimate for CNO’s 2024 earnings indicates a 20.7% year-over-year rise. Its revenues are projected to be $3.7 billion in 2024. The consensus mark for CNO’s 2024 earnings has moved 8.7% north in the past 30 days.

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