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Ally Financial (ALLY) Gains As Market Dips: What You Should Know
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Ally Financial (ALLY - Free Report) closed at $28.79 in the latest trading session, marking a +0.14% move from the prior day. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the auto finance company and bank had lost 16.42% over the past month. This has lagged the Finance sector's loss of 10.66% and the S&P 500's loss of 11.07% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be October 19, 2022. In that report, analysts expect Ally Financial to post earnings of $1.77 per share. This would mark a year-over-year decline of 18.06%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 8.97% from the prior-year quarter.
ALLY's full-year Zacks Consensus Estimates are calling for earnings of $7.21 per share and revenue of $8.6 billion. These results would represent year-over-year changes of -16.26% and +4.79%, respectively.
Investors might also notice recent changes to analyst estimates for Ally Financial. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Ally Financial is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 3.99. Its industry sports an average Forward P/E of 5.84, so we one might conclude that Ally Financial is trading at a discount comparatively.
Meanwhile, ALLY's PEG ratio is currently 0.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.24 based on yesterday's closing prices.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 135, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Ally Financial (ALLY) Gains As Market Dips: What You Should Know
Ally Financial (ALLY - Free Report) closed at $28.79 in the latest trading session, marking a +0.14% move from the prior day. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the auto finance company and bank had lost 16.42% over the past month. This has lagged the Finance sector's loss of 10.66% and the S&P 500's loss of 11.07% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be October 19, 2022. In that report, analysts expect Ally Financial to post earnings of $1.77 per share. This would mark a year-over-year decline of 18.06%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 8.97% from the prior-year quarter.
ALLY's full-year Zacks Consensus Estimates are calling for earnings of $7.21 per share and revenue of $8.6 billion. These results would represent year-over-year changes of -16.26% and +4.79%, respectively.
Investors might also notice recent changes to analyst estimates for Ally Financial. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Ally Financial is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 3.99. Its industry sports an average Forward P/E of 5.84, so we one might conclude that Ally Financial is trading at a discount comparatively.
Meanwhile, ALLY's PEG ratio is currently 0.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.24 based on yesterday's closing prices.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 135, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.