Synchrony Financial (SYF) tumbled to the bottom of the S&P 500 today after missing earnings forecasts by a wide margin thanks to a bigger-than-expected jump the amount of money set aside to cover bad loans.
Synchrony Financial dropped 16% to $27.80, while the S&P 500 declined 02% to 2,384.20.
Jefferies analyst John Hecht and team write that they’d be buyers of Synchrony Financial’s shares on the weakness:
SYF reported 1Q17 EPS of $0.61 versus our $0.72 forecast and consensus of $0.74. Top-line trends continued to show strong growth as net interest income beat our forecast by ~7% on both higher loan growth and better NIM. More than offsetting this was a higher provision. We note charge-offs of 5.3% were better than our forecast and we look to the call for incremental commentary on credit. We are buyers of the shares, especially on weakness.
Synchrony Financial’s market capitalization fell to $22.5 billion today from $26.8 billion yesterday.
Source: Blogs Barrons Stocks To Watch
