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Is Ally Financial (ALLY) Stock Outpacing Its Finance Peers 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. Is Ally Financial (ALLY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.

Ally Financial is one of 901 individual stocks in the Finance sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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 #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ALLY's full-year earnings has moved 26.44% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ALLY has gained about 41.28% so far this year. In comparison, Finance companies have returned an average of 18.30%. This means that Ally Financial is performing better than its sector in terms of year-to-date returns.

Breaking things down more, ALLY is a member of the Financial - Consumer Loans industry, which includes 20 individual companies and currently sits at #46 in the Zacks Industry Rank. On average, this group has gained an average of 49.56% so far this year, meaning that ALLY is slightly underperforming its industry in terms of year-to-date returns.

ALLY will likely be looking to continue its solid performance, so investors interested in Finance stocks should continue to pay close attention to the company.


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