Back to top

Image: Bigstock

Ally Financial (ALLY) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Ally Financial (ALLY - Free Report) closed the most recent trading day at $47.95, moving +0.1% from the previous trading session. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the auto finance company and bank had gained 4.52% in the past month. In that same time, the Finance sector gained 2.58%, while the S&P 500 gained 4.32%.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be January 21, 2022. The company is expected to report EPS of $2, up 25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 4.03% from the year-ago period.

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. These recent revisions tend to reflect the evolving nature of short-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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Ally Financial currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 5.58. For comparison, its industry has an average Forward P/E of 5.79, which means Ally Financial is trading at a discount to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ally Financial Inc. (ALLY) - free report >>

Published in