Synchrony Financial's Valuation Under Scrutiny Amid Q4 Earnings and Cautious 2025 Revenue Outlook

Synchrony Financial's latest earnings update showed better-than-expected adjusted EPS, but a cautious 2025 net revenue outlook due to moderating consumer spending and anticipated Federal Reserve rate cuts. The stock has declined 16.37% in the past month and 12.59% year-to-date, but its 1 year and 3 year total shareholder returns are 10.45% and 2.2x, respectively. The company's P/E is below the consumer finance peer average, and its most followed narrative pegs fair value at $105 per share, indicating a significant valuation gap.