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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 the most recent trading day at $26.71, moving +1.95% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 7.5%.

Prior to today's trading, shares of the auto finance company and bank had gained 1.83% over the past month. This has lagged the Finance sector's gain of 2.1% and outpaced the S&P 500's loss of 0.94% in that time.

Ally Financial will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2023. In that report, analysts expect Ally Financial to post earnings of $1 per share. This would mark a year-over-year decline of 50.5%. Our most recent consensus estimate is calling for quarterly revenue of $2.04 billion, down 7.12% from the year-ago period.

Any recent changes to analyst estimates for Ally Financial should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 4.57% lower. Ally Financial currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 6.89. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 6.89.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% 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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