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Are Investors Undervaluing Ally Financial (ALLY) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Ally Financial (ALLY - Free Report) . ALLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
ALLY is also sporting a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALLY's industry has an average PEG of 0.78 right now. Over the past 52 weeks, ALLY's PEG has been as high as 0.68 and as low as 0.45, with a median of 0.57.
Investors should also recognize that ALLY has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.99. ALLY's P/B has been as high as 0.98 and as low as 0.65, with a median of 0.85, over the past year.
Finally, investors should note that ALLY has a P/CF ratio of 4.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.08. Over the past 52 weeks, ALLY's P/CF has been as high as 4.33 and as low as 3.08, with a median of 3.93.
These are only a few of the key metrics included in Ally Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALLY looks like an impressive value stock at the moment.
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Are Investors Undervaluing Ally Financial (ALLY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Ally Financial (ALLY - Free Report) . ALLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
ALLY is also sporting a PEG ratio of 0.62. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALLY's industry has an average PEG of 0.78 right now. Over the past 52 weeks, ALLY's PEG has been as high as 0.68 and as low as 0.45, with a median of 0.57.
Investors should also recognize that ALLY has a P/B ratio of 0.98. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.99. ALLY's P/B has been as high as 0.98 and as low as 0.65, with a median of 0.85, over the past year.
Finally, investors should note that ALLY has a P/CF ratio of 4.21. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.08. Over the past 52 weeks, ALLY's P/CF has been as high as 4.33 and as low as 3.08, with a median of 3.93.
These are only a few of the key metrics included in Ally Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALLY looks like an impressive value stock at the moment.