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Ally Financial (ALLY) Gains As Market Dips: What You Should Know
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Ally Financial (ALLY - Free Report) closed at $41.20 in the latest trading session, marking a +0.96% move from the prior day. This change outpaced the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the auto finance company and bank had lost 15.3% over the past month, lagging the Finance sector's loss of 8.39% and the S&P 500's loss of 6.24% in that time.
Ally Financial will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ally Financial to post earnings of $1.96 per share. This would mark a year-over-year decline of 6.22%. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.38%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 0.01% higher. 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 5.38. For comparison, its industry has an average Forward P/E of 6.98, which means Ally Financial is trading at a discount to the group.
It is also worth noting that ALLY currently has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALLY's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
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Ally Financial (ALLY) Gains As Market Dips: What You Should Know
Ally Financial (ALLY - Free Report) closed at $41.20 in the latest trading session, marking a +0.96% move from the prior day. This change outpaced the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the auto finance company and bank had lost 15.3% over the past month, lagging the Finance sector's loss of 8.39% and the S&P 500's loss of 6.24% in that time.
Ally Financial will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ally Financial to post earnings of $1.96 per share. This would mark a year-over-year decline of 6.22%. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.58 per share and revenue of $8.73 billion. These totals would mark changes of -11.96% and +6.38%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 0.01% higher. 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 5.38. For comparison, its industry has an average Forward P/E of 6.98, which means Ally Financial is trading at a discount to the group.
It is also worth noting that ALLY currently has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALLY's industry had an average PEG ratio of 0.3 as of yesterday's close.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.