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Is Ally Financial (ALLY) a Great Value Stock Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Ally Financial (ALLY - Free Report) . ALLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.02 right now. For comparison, its industry sports an average P/E of 7.17. Over the past 52 weeks, ALLY's Forward P/E has been as high as 12.09 and as low as 6.90, with a median of 8.97.
Finally, our model also underscores that ALLY has a P/CF ratio of 4.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ALLY's current P/CF looks attractive when compared to its industry's average P/CF of 5.40. Over the past year, ALLY's P/CF has been as high as 6.59 and as low as 3.69, with a median of 4.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ally Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALLY feels like a great value stock at the moment.
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Is Ally Financial (ALLY) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Ally Financial (ALLY - Free Report) . ALLY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.02 right now. For comparison, its industry sports an average P/E of 7.17. Over the past 52 weeks, ALLY's Forward P/E has been as high as 12.09 and as low as 6.90, with a median of 8.97.
Finally, our model also underscores that ALLY has a P/CF ratio of 4.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ALLY's current P/CF looks attractive when compared to its industry's average P/CF of 5.40. Over the past year, ALLY's P/CF has been as high as 6.59 and as low as 3.69, with a median of 4.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ally Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALLY feels like a great value stock at the moment.