Which Consumer Financial Services Stock is a Better Buy? -Breaking
Due to rising consumer spending and financial transactions, the financial services sector is making a remarkable comeback. The industry tailwinds should be a boon for Synchrony and Ally (SYF), respectively. What stock do you think is the best buy? Learn more. Synchrony Financial is a company that provides specialized financial products and financing to consumers. It operates in several industries, including auto, retail, and home. Ally Financial Inc., (NYSE:), is the bank holding company that offers various digital financial products, services, to both corporate and consumer customers, predominantly in Canada and the United States.
The interest rate environment is still low but the sector of consumer financial services is experiencing a strong recovery due to increased financial transactions and capital markets activities. High inflation aside, consumer spending on discretionary goods and services has increased dramatically, increasing the popularity of online payment options in this hybrid lifestyle. In the coming months, technological innovation will continue to grow and digital services will be more widely adopted. A Research and Markets report states that the world’s consumer finance market will grow at a rate of 5% between 2026 and 2026. Both SYF as well as ALLY will therefore benefit.
SYF returned 40 percent while ALLY gained 48.6% in the last year. However, SYF’s 30.5% gains year-to-date are higher than ALLY’s 29.9% returns. Moreover, SYF is the clear winner with 12.9% gains versus ALLY’s 7.2% returns in terms of the past nine months’ performance.
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