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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 $47.24 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq lost 0.4%.

Coming into today, shares of the auto finance company and bank had lost 7.17% in the past month. In that same time, the Finance sector lost 1.63%, while the S&P 500 lost 0.91%.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be January 21, 2022. In that report, analysts expect Ally Financial to post earnings of $2.01 per share. This would mark year-over-year growth of 25.63%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 4.03% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.59 per share and revenue of $8.08 billion, which would represent changes of +183.5% and +20.9%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ally Financial. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Ally Financial is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Ally Financial is holding a Forward P/E ratio of 5.41. This represents a discount compared to its industry's average Forward P/E of 5.54.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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