Synchrony & Jewelers Mutual Unite to Transform Jewelry Financing

A leading player in the consumer financing space, Synchrony Financial SYF recently teamed up with Jewelers Mutual Group with a new sponsorship agreement. This partnership aims to integrate financial services with insurance offerings, allowing them to combine their market efforts and connect with a broader audience in a more streamlined and effective manner.

Through this strategic partnership, SYF’s consumer financing solutions will be promoted through Jewelers Mutual’s marketing channels and featured prominently on the Zing Marketplace. It is a digital hub for jewelers, which includes a diamond marketplace, jeweler web pages and a jewelry appraisal solution.

This combined strategy offers significant benefits to jewelry retailers by providing them with the tools they need to not only increase sales through financing options but also to help customers understand how to protect their purchases. With more than 4,000 jewelry retailers already taking advantage of Synchrony’s financing solutions and over one million customers trusting Jewelers Mutuals for insurance, this collaboration is set to enhance the market presence of both brands.

This is a remarkable step toward integrating the value chain. When consumers consider purchasing expensive jewelry, they usually choose options for financing and protection. By merging these two services into one marketing strategy, this collaboration could lead to greater customer trust, simplify the buying process, and ultimately boost the average order values for retailers.

If this strategy works as planned, it could serve as a blueprint for other industries that deal with high-value purchases, such as electronics or automotive. It highlights how strategic collaborations can create synergies between sectors that usually operate independently.

SYF is actively expanding its presence through partnerships and collaborations, which will likely improve its active accounts. In the first quarter, its average active accounts of 69.3 million slipped 3% year over year. Some of its recent partnerships are with Discount Tire and the Independent Animal Hospital Association.

SYF Stock Price Performance

Over the past year, Synchrony shares have gained 35.7% compared with the industry’s growth of 7.8%.

SYF’s Zacks Rank & Key Picks

SYF currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader finance space are Horace Mann Educators Corp HMN, Heritage Insurance Holdings Inc. HRTG and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings of $4.01 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. Horace Mann Educators beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 24.1%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 6.6% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.

The Zacks Consensus Estimate for Acadian’s current-year earnings is pegged at $2.86 per share, implying 3.6% year-over-year growth. In the past 30 days, Acadian has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $526.8 million, calling for 4.2% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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