 Dear Reader, The stock market just entered a highly dangerous new phase – which is going to have dramatic consequences for your money this summer. The signs are everywhere: SpaceX just went public. OpenAI and Anthropic will likely follow it. If you're thinking of buying into any of these IPOs... PLEASE DON'T. They're likely to be disasters – the most overhyped, overvalued large-cap stocks of all time, foisted on gullible investors by Wall Street insiders. At the same time, the President and his family are openly picking winners in the stock market... while a 24-year-old just founded his own hedge fund and made $5 billion in less than a year. But it's what's coming NEXT that I'm most worried about. I've spent 30 years on Wall Street. I have my MBA from Harvard and spend my time in correspondence with billionaires like Warren Buffett and Bill Ackman. I've forecast the collapse of dozens of stocks. But what I see happening today scares me – as a former money manager, as a father, and as an American. Because our country is headed toward an economic event unlike anything we've seen in over 100 years. Perhaps you see the signs too. Or maybe you just feel it – that creeping, nagging doubt that tells you something is dangerously wrong in our country. If that's you, I'd urge you... listen to your gut. If you care about your wealth, your family, and your future, you need to understand what's really coming. I've put together a free analysis explaining exactly what I see, and the specific steps I recommend you take with your money today. I strongly encourage you to check it out here. Regards, Whitney Tilson
Editor, Stansberry Investment Advisory
Former Hedge Fund Manager
Co-Founder, Teach for America
Harvard MBA P.S. What's happening today will reset the financial system in a way most of us can't imagine. If I'm even half-right, it's going to have a huge impact on your money and your future. Get the details here...
This Month's Featured Content
Synchrony’s Comeback Is Hiding in Plain SightWritten by Peter Frank. Article Posted: 6/10/2026. 
Key Points
- Synchrony is benefiting from stronger credit performance and improving profitability across its consumer lending business.
- Lower loan-loss provisions and declining charge-offs have helped support earnings growth and shareholder returns.
- Analysts see potential upside, but the stock remains sensitive to consumer spending and economic conditions.
- Special Report: Is SpaceX really worth 1.78 Trillion?
As long as shoppers keep spending and paying their bills, Synchrony Financial (NYSE: SYF) should be able to keep profiting. That has been working fairly well lately. As one of the largest private-label credit card issuers in the United States, the company is generating earnings, reducing loan losses, and returning billions to shareholders.
Analysts are generally optimistic. But because this is a cyclical consumer credit play, the biggest rewards tend to go to investors who can tolerate volatility. Synchrony Operates Behind the ScenesIf Synchrony is not a household name, it’s because most consumers interact with the company without realizing it. When someone signs up for a store credit card at a major retailer, a healthcare financing plan at a dentist’s office, or the buy-now-pay-later option at an online checkout, there is a good chance Synchrony is behind it. Synchrony partners with retailers, healthcare providers, and service businesses to issue private-label credit cards, co-branded cards, installment loans, and health-and-wellness financing programs. In the financial sector, the company is perhaps better known for its aggressive marketing of high-rate certificates of deposit, which provide funds it can then lend against. That lending-partnership model is both Synchrony’s strength and its core risk. The company does not compete for customers the way a traditional bank does. Consumer relationships come through the retailer’s brand loyalty. But when the cycle turns and retailers suffer, so does Synchrony. Credit Trends ImprovedThese potential challenges have not been an issue recently. Consolidated net earnings in the first quarter came in at $805 million, an increase of 6% year over year. Diluted earnings per share hit $2.27, up 20% from $1.89 in the prior-year period and above analysts’ expectations. The stronger earnings per share came despite slower growth in other areas. Purchase volume of $43 billion was up 6% from the year-ago quarter. Single-digit increases came in almost every segment, including digital, diversified, health and wellness, and lifestyle. Home and auto purchase volume remained flat. Overall, loan receivables were also basically unchanged at $101 billion, and active accounts remained relatively constant. Among the most important trend indicators is the company’s net charge-off rate, or the relative amount of loans it writes off as uncollectable, which fell sharply over the past year. In a decidedly mixed consumer credit environment, that is an important development, as charge-offs dropped to 5.42% from 6.38% a year earlier. Equally important to earnings, Synchrony’s provision for loan losses, the amount set aside from earnings for future charge-offs, was down 11% in the first quarter compared with a year earlier. That followed an overall reduction in the provision of 22% in 2025. A Turnaround Is Taking HoldThe company’s position looks even more impressive when viewed over the past couple of years. Through much of 2024 and into early 2025, consumer lenders faced rising charge-offs as pandemic-era savings ran dry. Lower-income borrowers were stretched thin under the weight of persistent inflation. Synchrony was not immune, as charge-offs climbed and management tightened underwriting standards, putting pressure on the stock. Then Synchrony’s tighter credit controls began to show results. For 2025, the company reported net earnings of $3.5 billion, or $9.28 per diluted share, with full-year charge-offs pulling back within the company’s long-term target range of 5.5% to 6%. Those positive trends continued into this year. The company has also been adding to its partner list, not just defending existing relationships against competitors like Capital One (NYSE: COF) and Bread Financial (NYSE: BFH). Synchrony announced that it added or renewed more than 15 partners in the first quarter, including Miracle Ear, Indian Motorcycle, and Harbor Freight Tools. The company also announced an enhanced credit card program with Dick’s Sporting Goods and expanded its CareCredit health financing platform into e-commerce partnerships in the cosmetic space. Shareholders Are Getting PaidFor investors, the recent performance has meant income as well. Synchrony returned $1 billion in capital to shareholders in the first quarter, including $900 million of share repurchases and $104 million in common stock dividends. That is supported by total liquid assets of $22.8 billion, or 18.8% of total assets, as of March 31. For income investors, Synchrony declared a 30-cent quarterly common dividend and announced plans to raise that payout 13% to 34 cents per share beginning in the third quarter. With the dividend increase, the board also approved a new $6.5 billion share repurchase authorization. Wall Street Sees PotentialDespite the positive results, no company deeply embedded in a cyclical industry is right for every investor. The stock, which hit a 52-week high in early January, is down more than 10% since the start of the year, signaling some investor hesitation about economic conditions. Over the past 12 months, however, shares are up almost 20%. Given the recent pullback, analysts see clear, if not robust, upside for the stock, rating the company an overall Moderate Buy. Currently trading around $70 per share, SYF's average 12-month price target is $86.05, or about 20% upside. Thirteen of the 21 analysts have assigned the company a Buy rating, while eight suggest Hold. Cyclical Risks Come With Cyclical RewardsThere is no disguising the inherent risks and potential rewards of Synchrony shares. As a consumer credit company, they are built into the business. For Synchrony, its revenues depend on maintaining strong relationships with major retail and healthcare partners. The broader macro environment adds another layer of uncertainty. Even after the year-over-year improvement in charge-offs, a 5.42% rate is still elevated in absolute terms, and the figure was trending slightly higher than in the two previous quarters. Even so, the profits were there. For investors who like owning a well-run, capital-returning consumer lender with improving credit trends and proven earnings power, Synchrony may be a stock to consider. Cyclical stocks can be attractive for short-term trades if the timing is right. Longer-term value, however, comes from riding out volatility.
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