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Is Ally Financial (ALLY) Stock Outpacing Its Finance Peers This Year?

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The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Ally Financial (ALLY - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.

Ally Financial is a member of the Finance sector. This group includes 906 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ALLY is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ALLY's full-year earnings has moved 39.99% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ALLY has returned about 39.76% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of 18.03% on a year-to-date basis. This means that Ally Financial is outperforming the sector as a whole this year.

Breaking things down more, ALLY is a member of the Financial - Consumer Loans industry, which includes 20 individual companies and currently sits at #62 in the Zacks Industry Rank. On average, this group has gained an average of 44.27% so far this year, meaning that ALLY is slightly underperforming its industry in terms of year-to-date returns.

Investors with an interest in Finance stocks should continue to track ALLY. The stock will be looking to continue its solid performance.


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