Billionaire Cliff Asness’ 10 Stock Picks with Huge Upside Potential

7. Synchrony Financial (NYSE:SYF)

AQR Capital Management’s Q4 Stake: $258 million

Upside Potential as of April 26: 27.20%

Number of Hedge Fund Holders: 64

Synchrony Financial (NYSE:SYF) is a consumer finance company that provides credit cards, installment loans, and commercial financing. The company also offers private label and co-branded credit cards, as well as banking services.

Earlier this March, BofA Securities reiterated its Buy rating and $85 price target for Synchrony Financial (NYSE:SYF) shares. The endorsement comes amid debate over the long-term viability of some mitigating activities in light of anticipated regulatory changes. The firm’s analysts have expressed confidence in the company’s business strategy, implying that even if the era of ‘over earning’ ends earlier than expected, the valuation continues to be appealing.

On April 22, Synchrony Financial (NYSE:SYF) reported mixed results for the first quarter of 2025. The company’s average active accounts increased 3% year-over-year to 69 million, while purchasing volume jumped 4% to $41 billion and loan receivables increased 2% to $100 billion. However, the company’s financial results indicated major strain on profitability. Diluted earnings per share declined 40% year-over-year to $1.89, while return on assets came in at 2.5%. Additionally, net revenue fell by 23%, from $4,798 million to $3,718 million. This decline was mainly driven by an 87% drop in other income to $149 million, which was slightly offset by a 1% gain in net interest income to $4,464 million.