Synchrony Financial (NYSE: SYF) is a consumer finance company that largely issues credit-card loans through various channels. With roughly $96 billion in assets, the company uses what it calls a "partner-centric" business model, teaming up with leading retailers and digital brands that promote Synchrony's credit cards to help increase their own sales.
Unfortunately, it is the very nature of Synchrony's business model that makes me unable to recommend this stock right now. I certainly see some intriguing aspects to the company, particularly in the digital channels it's building out, but consumer finance companies can experience high loan losses in recessions, and there is simply too much uncertainty about the broader U.S. economy right now.
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