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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 the most recent trading day at $33.36, moving +0.51% from the previous trading session. This change outpaced the S&P 500's 1.1% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the auto finance company and bank had lost 0.72% in the past month. In that same time, the Finance sector lost 1.78%, while the S&P 500 lost 2.28%.
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 $1.83 per share. This would mark a year-over-year decline of 15.28%. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, up 10.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.21 per share and revenue of $8.69 billion, which would represent changes of -16.26% and +5.88%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.08% lower. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 4.61. This represents a discount compared to its industry's average Forward P/E of 5.58.
Also, we should mention that ALLY has a PEG ratio of 0.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.27 based on yesterday's closing prices.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Ally Financial (ALLY) Gains As Market Dips: What You Should Know
Ally Financial (ALLY - Free Report) closed the most recent trading day at $33.36, moving +0.51% from the previous trading session. This change outpaced the S&P 500's 1.1% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the auto finance company and bank had lost 0.72% in the past month. In that same time, the Finance sector lost 1.78%, while the S&P 500 lost 2.28%.
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 $1.83 per share. This would mark a year-over-year decline of 15.28%. Meanwhile, our latest consensus estimate is calling for revenue of $2.19 billion, up 10.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.21 per share and revenue of $8.69 billion, which would represent changes of -16.26% and +5.88%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.08% lower. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 4.61. This represents a discount compared to its industry's average Forward P/E of 5.58.
Also, we should mention that ALLY has a PEG ratio of 0.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.27 based on yesterday's closing prices.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.