Back to top

Image: Bigstock

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

Read MoreHide Full Article

Ally Financial (ALLY - Free Report) closed at $47.03 in the latest trading session, marking a +1.55% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.57%.

Prior to today's trading, shares of the auto finance company and bank had lost 6.35% over the past month. This has lagged the Finance sector's loss of 5.58% and the S&P 500's loss of 2.46% in that time.

Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. The company is expected to report EPS of $2.01, up 25.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 3.78% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.59 per share and revenue of $8.08 billion. These totals would mark changes of +183.5% and +20.84%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ally Financial. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Ally Financial has a Forward P/E ratio of 5.39 right now. For comparison, its industry has an average Forward P/E of 5.79, which means Ally Financial is trading at a discount to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ally Financial Inc. (ALLY) - free report >>

Published in