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Ally Financial (ALLY) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Ally Financial (ALLY - Free Report) closed at $19.92, marking a -0.85% move from the previous day. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.33%.

Investors will be hoping for strength from ALLY as it approaches its next earnings release. The company is expected to report EPS of $0.37, down 61.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, down 4.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.61 per share and revenue of $5.94 billion, which would represent changes of -83.6% and -7.06%, respectively, from the prior year.

Any recent changes to analyst estimates for ALLY should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 53.13% higher within the past month. ALLY is currently a Zacks Rank #4 (Sell).

Digging into valuation, ALLY currently has a Forward P/E ratio of 32.8. For comparison, its industry has an average Forward P/E of 13.57, which means ALLY is trading at a premium to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 232, which puts it in the bottom 9% 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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