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Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know

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Ally Financial (ALLY - Free Report) closed at $52.47 in the latest trading session, marking a +1.41% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%.

Coming into today, shares of the auto finance company and bank had lost 1.24% in the past month. In that same time, the Finance sector lost 2.02%, while the S&P 500 lost 0.37%.

Investors will be hoping for strength from ALLY as it approaches its next earnings release. In that report, analysts expect ALLY to post earnings of $1.89 per share. This would mark year-over-year growth of 51.2%. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 19.12% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.18 per share and revenue of $8.02 billion. These totals would mark changes of +169.97% and +20.03%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ALLY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ALLY is currently a Zacks Rank #2 (Buy).

Digging into valuation, ALLY currently has a Forward P/E ratio of 6.33. This represents a discount compared to its industry's average Forward P/E of 6.73.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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