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Ally Financial (ALLY) Gains But Lags Market: What You Should Know
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Ally Financial (ALLY - Free Report) closed at $44.83 in the latest trading session, marking a +0.13% move from the prior day. This change lagged the S&P 500's 0.51% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.19%.
Heading into today, shares of the auto finance company and bank had lost 7.27% over the past month, lagging the Finance sector's gain of 3.68% and the S&P 500's gain of 5.51% in that time.
Ally Financial will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2022. The company is expected to report EPS of $1.96, down 6.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.38%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. 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 5.9. Its industry sports an average Forward P/E of 7.22, so we one might conclude that Ally Financial is trading at a discount comparatively.
It is also worth noting that ALLY currently has a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Consumer Loans was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Ally Financial (ALLY) Gains But Lags Market: What You Should Know
Ally Financial (ALLY - Free Report) closed at $44.83 in the latest trading session, marking a +0.13% move from the prior day. This change lagged the S&P 500's 0.51% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.19%.
Heading into today, shares of the auto finance company and bank had lost 7.27% over the past month, lagging the Finance sector's gain of 3.68% and the S&P 500's gain of 5.51% in that time.
Ally Financial will be looking to display strength as it nears its next earnings release, which is expected to be April 14, 2022. The company is expected to report EPS of $1.96, down 6.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.38%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. 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 5.9. Its industry sports an average Forward P/E of 7.22, so we one might conclude that Ally Financial is trading at a discount comparatively.
It is also worth noting that ALLY currently has a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Consumer Loans was holding an average PEG ratio of 0.33 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.