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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 $23.48 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the auto finance company and bank had lost 9.35% in the past month. In that same time, the Finance sector lost 3.85%, while the S&P 500 lost 3.6%.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be January 20, 2023. On that day, Ally Financial is projected to report earnings of $1 per share, which would represent a year-over-year decline of 50.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.04 billion, down 7.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.01 per share and revenue of $8.47 billion, which would represent changes of -30.2% and +3.17%, 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 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% lower. Ally Financial is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 3.9. This represents a discount compared to its industry's average Forward P/E of 6.21.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ally Financial (ALLY) Gains But Lags Market: What You Should Know
Ally Financial (ALLY - Free Report) closed at $23.48 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the auto finance company and bank had lost 9.35% in the past month. In that same time, the Finance sector lost 3.85%, while the S&P 500 lost 3.6%.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be January 20, 2023. On that day, Ally Financial is projected to report earnings of $1 per share, which would represent a year-over-year decline of 50.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.04 billion, down 7.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.01 per share and revenue of $8.47 billion, which would represent changes of -30.2% and +3.17%, 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 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% lower. Ally Financial is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 3.9. This represents a discount compared to its industry's average Forward P/E of 6.21.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 240, putting it in the bottom 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.