Add Synovus Financial Corp. Adding SNV shares to your portfolio now seems like a smart idea. Thanks to its strong fundamentals, the company is well positioned for growth.

The Zacks Consensus Estimate for SNV’s earnings in 2024 has been revised 4.9% upward over the past 30 days, indicating that analysts are optimistic about its earnings growth potential. SNV currently has a Zacks Rank #2 (Buy).

Over the past six months, the stock has risen 19.1 percent, compared to industry growth of 16.9 percent.

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Now let’s take a closer look at the other factors that make SNV an attractive investment option.

Profit growth: The company’s earnings have grown 9.3% over the past three to five years. SNV’s earnings are expected to decline 1.5% in 2024, while they are expected to increase 16% in 2025.

Synergies from mergers and acquisitions: SNV invests through mergers and acquisitions to enhance its operations and strengthen its presence in various areas. On June 1, 2023, Synovus acquired a 60% stake in Qualpay – a cloud-based platform that combines a payment gateway with a robust merchant processing solution. In 2019, the company completed the acquisition of FCB Financial Holdings. The company looks forward to pursuing similar opportunities in the future.

Balance sheet strength: Synovus’ total debt (consisting of long-term debt and other short-term borrowings) was $2.28 billion and cash and cash equivalents were $2.29 billion as of June 30, 2024. The company has long-term issuer ratings of BBB- and BBB from Standard & Poor’s and Fitch, respectively. This will likely provide the company with favorable access to the credit market. Given the company’s strong liquidity position and access to credit markets, it is expected to meet its payment obligations even if economic conditions deteriorate.

Solid capital distributions: Synovus has an impressive capital deployment plan. In January 2024, the bank was authorized to repurchase up to $300 million of common stock. As of June 30, 2024, approximately $179.3 million of repurchase authorizations remained available. In March 2023, the company announced a 12% increase in its quarterly dividend to 38 cents per share, following a 3% increase in 2022 and a 10% increase in 2020. Given the company’s strong balance sheet and liquidity position, the continuation of its sustainable capital distribution activities will increase investor confidence in the stock.

Superior return on equity (ROE): Synovus’s return on equity (ROE) over the last 12 months reflects superior utilization of shareholder funds. The company’s return on equity of 12.76% compares favorably to the industry’s 9.07%.

The story continues

Other stocks to consider

A few other high-ranking stocks from the same area are First Bancorp FBNC and First Community Corp. FCCO, all of which currently have a Zacks Rank of 2. You can see You can find the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First Bancorp’s earnings estimates for the current year have been revised up 11.3% over the past 30 days. FBNC shares have gained 18.5% over the past six months.

The consensus estimate for FCCO’s current year earnings has been revised up 9.9% over the past 60 days. Over the past six months, FCCO shares have risen 24.6%.

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Synovus Financial Corp. (SNV): Free Stock Analysis Report

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