10 Lowest PE Ratio Stocks in S&P 500

5. Synchrony Financial (NYSE:SYF)

P/E Ratio as of April 29: 7.15

Number of Hedge Fund Holders: 64

Synchrony Financial (NYSE:SYF) is a Connecticut-based consumer financial services company that provides credit products like credit cards, loans, and private label cards. The company also offers savings and deposit products such as CDs and IRAs. It ranks 5th on our list of stocks with a low PE ratio.

On April 7, Morgan Stanley downgraded Synchrony Financial (NYSE:SYF) from Overweight to Equal Weight, while almost halving the price target from $82 to $44. Morgan Stanley downgraded SYF due to recession risks, which could impact its consumer credit business. The firm revised its 2026 earnings estimate down 18% to $7.36, expecting higher credit losses and slower loan growth. The new price target of $44 reflects a 6x P/E ratio, indicating limited upside.

Synchrony Financial (NYSE:SYF)’s Q1 2025 net earnings dropped 41% to $757 million, but adjusted earnings rose 54% to $491 million. The company announced a $2.5 billion share repurchase program and a 20% dividend increase to $0.30 per share. SYF’s flat loan fees came in at $5.3 billion, the company reported a 1% increase in net interest income, and a 17% rise in retailer share arrangements. Provision for credit losses decreased by $393 million for the first quarter.

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Synchrony Financial (NYSE:SYF), compared to 44 funds in the last quarter. PAR Capital Management was the biggest stakeholder of the company, with 7.40 million shares worth $481 million.