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Has Ally Financial (ALLY) Outpaced Other Finance Stocks This Year?

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For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Ally Financial (ALLY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.

Ally Financial is one of 900 individual stocks in the Finance sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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).

Within the past quarter, the Zacks Consensus Estimate for ALLY's full-year earnings has moved 30.47% 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 43.75% since the start of the calendar year. Meanwhile, stocks in the Finance group have gained about 19.56% on average. This means that Ally Financial is outperforming the sector as a whole this year.

To break things down more, ALLY belongs to the Financial - Consumer Loans industry, a group that includes 20 individual companies and currently sits at #59 in the Zacks Industry Rank. On average, stocks in this group have gained 52.77% this year, meaning that ALLY is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Finance stocks should continue to pay close attention to ALLY as it looks to continue its solid performance.


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