Yahoo Finance Synchrony (SYF) Renews Tie-Up, Strengthens Jewelry Space Foothold
Synchrony Financial SYF expanded its longstanding collaboration with the U.S. jewelry retailer and broadcast network, JTV, by virtue of which SYF can continue offering a private-label credit card program for customers of the latter.
The partnership commenced between the two companies in 2018, wherein SYF was entrusted to offer consumer financing options to the JTV Preferred Account credit cardholders. Since then, the cardholders denote the most loyal clients of JTV in terms of growing purchase volumes and Customer Lifetime Value, thereby creating a base for the tie-up renewal.
The expanded alliance concentrates on the digitization of payment solutions and leveraging data analytics to bring about increased personalization for customers. SYF will provide an opportunity for JTV consumers to seek credit and financing prior to purchase and hence, grasp an idea of their affordability. In addition to this, a real-time pre-approval can be received instantly by JTV consumers while shopping without any effect on their credit score.
The benefits of the renewed tie-up can be reaped by clients who will indulge in purchases with JTV either through its online business or through television broadcasts of the jewelry retailer.
In addition to the recently infused benefits, the JTV Preferred Account credit card comprises other notable benefits as well. Cardholders do not have to bear an annual card fee. An acquisition bonus awaits when a consumer uses their JTV Preferred Account. Cardholders are liable to pay no interest if the promotional balance is repaid in full within a year, provided the purchases are worth $299 or more. Further, special Preferred Account offers remain in store the entire year.
The recent initiative reinforces Synchrony Financial’s efforts to solidify ties with JTV since the latter has widespread reach to millions of American households. Additionally, the partnership expansion bears testament to SYF’s efforts to broaden consumer payment choices, widen credit accessibility, cement solid customer relationships, fetch new clients and bring increased repeat sales.
This, in turn, is likely to bolster the revenue base of Synchrony Financial since it derives most of its revenues from extending credit products in accordance with program agreements with partners.
SYF is likely to establish a robust foothold across the jewelry marketplace through the latest tie-up renewal. It is steadily pursuing a series of acquisitions and renewal of alliances with several payment solutions partners throughout the United States to broaden and diversify its portfolio. The list of SYF’s partners is perpetually increasing, with more than 15 partners being added or relationships being renewed in the first quarter of 2023.
Shares of Synchrony Financial have lost 14.5% in a year compared with the industry’s 19% decline. SYF currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Finance space are Monroe Capital Corporation MRCC, Innovative Industrial Properties, Inc. IIPR and Rexford Industrial Realty, Inc. REXR. While Monroe Capital currently sports a Zacks Rank #1 (Strong Buy), Innovative Industrial Properties and Rexford Industrial Realty carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Monroe Capital outpaced estimates in two of the last four quarters, missed the mark once and matched the mark once, the average surprise being 5.85%. The Zacks Consensus Estimate for MRCC’s 2023 earnings suggests an improvement of 12.8%, while the same for revenues suggests growth of 17.5% from the respective year-ago reported figures. The consensus mark for MRCC’s 2023 earnings has moved 9.5% north in the past 30 days.
Innovative Industrial Properties’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.96%. The Zacks Consensus Estimate for IIPR’s 2023 earnings suggests an improvement of 2.5%, while the same for revenues suggests growth of 6% from the corresponding year-ago reported figures. The consensus mark for IIPR’s 2023 earnings has moved north by 3.6% in the past 30 days.
The bottom line of Rexford Industrial Realty outpaced estimates in three of the last four quarters and matched the same once, the average surprise being 2.08%. The Zacks Consensus Estimate for REXR’s 2023 earnings suggests an improvement of 11.7%, while the same for revenues suggests growth of 21.8% from the comparable year-ago reported figure. The consensus mark for REXR’s 2023 earnings has moved 1.4% north in the past 60 days.
Shares of Monroe Capital, Innovative Industrial Properties and Rexford Industrial Realty have decreased 24.7%, 52.1% and 18.5%, respectively, in the past year.
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