We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Ally Financial (ALLY - Free Report) closed at $43.98, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the auto finance company and bank had lost 6.72% over the past month. This has lagged the Finance sector's gain of 1.56% and the S&P 500's gain of 3.75% in that time.
Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. This is expected to be April 14, 2022. On that day, Ally Financial is projected to report earnings of $2.03 per share, which would represent a year-over-year decline of 2.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
ALLY's full-year Zacks Consensus Estimates are calling for earnings of $7.56 per share and revenue of $8.73 billion. These results would represent year-over-year changes of -12.2% and +6.37%, respectively.
It is also important to note the recent changes to analyst estimates for Ally Financial. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. Ally Financial currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Ally Financial is holding a Forward P/E ratio of 5.75. This valuation marks a discount compared to its industry's average Forward P/E of 7.33.
Meanwhile, ALLY's PEG ratio is currently 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALLY's industry had an average PEG ratio of 0.33 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 154, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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:
Image: Bigstock
Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Ally Financial (ALLY - Free Report) closed at $43.98, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the auto finance company and bank had lost 6.72% over the past month. This has lagged the Finance sector's gain of 1.56% and the S&P 500's gain of 3.75% in that time.
Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. This is expected to be April 14, 2022. On that day, Ally Financial is projected to report earnings of $2.03 per share, which would represent a year-over-year decline of 2.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.14 billion, up 10.66% from the year-ago period.
ALLY's full-year Zacks Consensus Estimates are calling for earnings of $7.56 per share and revenue of $8.73 billion. These results would represent year-over-year changes of -12.2% and +6.37%, respectively.
It is also important to note the recent changes to analyst estimates for Ally Financial. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. Ally Financial currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Ally Financial is holding a Forward P/E ratio of 5.75. This valuation marks a discount compared to its industry's average Forward P/E of 7.33.
Meanwhile, ALLY's PEG ratio is currently 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALLY's industry had an average PEG ratio of 0.33 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 154, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.