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Ally Financial (ALLY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Ally Financial (ALLY - Free Report) closed at $23.68, marking a -1.04% move from the previous day. This change lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.

Prior to today's trading, shares of the auto finance company and bank had lost 8.24% over the past month. This has lagged the Finance sector's loss of 3.99% and the S&P 500's loss of 4.4% in that time.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be January 20, 2023. In that report, analysts expect Ally Financial to post earnings of $1 per share. This would mark a year-over-year decline of 50.5%. Our most recent consensus estimate is calling for quarterly revenue of $2.04 billion, down 7.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.01 per share and revenue of $8.47 billion, which would represent changes of -30.2% and +3.17%, 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.

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. The Zacks Consensus EPS estimate has moved 0.58% lower within the past month. Ally Financial is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Ally Financial's current valuation metrics, including its Forward P/E ratio of 3.98. This valuation marks a discount compared to its industry's average Forward P/E of 6.37.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% 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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