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Ally Financial (ALLY) Dips More Than Broader Markets: What You Should Know
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Ally Financial (ALLY - Free Report) closed at $28.10 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the auto finance company and bank had lost 14.1% over the past month. This has lagged the Finance sector's loss of 9.32% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be October 19, 2022. On that day, Ally Financial is projected to report earnings of $1.80 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 9.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $8.61 billion, which would represent changes of -16.84% and +4.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Ally Financial should also be noted by investors. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% lower. Ally Financial is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Ally Financial is holding a Forward P/E ratio of 3.98. This valuation marks a discount compared to its industry's average Forward P/E of 5.29.
It is also worth noting that ALLY currently has a PEG ratio of 0.12. 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. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.22 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 87, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Ally Financial (ALLY) Dips More Than Broader Markets: What You Should Know
Ally Financial (ALLY - Free Report) closed at $28.10 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the auto finance company and bank had lost 14.1% over the past month. This has lagged the Finance sector's loss of 9.32% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be October 19, 2022. On that day, Ally Financial is projected to report earnings of $1.80 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 9.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.16 per share and revenue of $8.61 billion, which would represent changes of -16.84% and +4.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Ally Financial should also be noted by investors. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.61% lower. Ally Financial is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Ally Financial is holding a Forward P/E ratio of 3.98. This valuation marks a discount compared to its industry's average Forward P/E of 5.29.
It is also worth noting that ALLY currently has a PEG ratio of 0.12. 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. The Financial - Consumer Loans industry currently had an average PEG ratio of 0.22 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 87, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.