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Ally Financial (ALLY) Stock Sinks As Market Gains: What You Should Know

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Ally Financial (ALLY - Free Report) closed at $23.44 in the latest trading session, marking a -0.38% move from the prior day. This change lagged the S&P 500's daily gain of 1.76%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 3.03%.

Heading into today, shares of the auto finance company and bank had lost 27.02% over the past month, lagging the Finance sector's loss of 11.12% and the S&P 500's loss of 5.94% in that time.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release. In that report, analysts expect Ally Financial to post earnings of $0.90 per share. This would mark a year-over-year decline of 55.67%. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, down 3.73% from the prior-year quarter.

ALLY's full-year Zacks Consensus Estimates are calling for earnings of $3.65 per share and revenue of $8.36 billion. These results would represent year-over-year changes of -39.77% and -0.8%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.03% 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 6.44. This represents a discount compared to its industry's average Forward P/E of 6.75.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow ALLY in the coming trading sessions, be sure to utilize Zacks.com.


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