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Is Ally Financial (ALLY) Outperforming Other Finance Stocks This Year?

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The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Ally Financial (ALLY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ALLY and the rest of the Finance group's stocks.

Ally Financial is a member of our Finance group, which includes 887 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ALLY is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ALLY's full-year earnings has moved 20.28% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ALLY has gained about 19.71% so far this year. Meanwhile, stocks in the Finance group have gained about 10.35% on average. This shows that Ally Financial is outperforming its peers so far this year.

To break things down more, ALLY belongs to the Financial - Consumer Loans industry, a group that includes 22 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 16.88% so far this year, meaning that ALLY is performing better in terms of year-to-date returns.

Going forward, investors interested in Finance stocks should continue to pay close attention to ALLY as it looks to continue its solid performance.


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