Subscribe to Entrepreneur for $5
Subscribe

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

In the latest trading session, Ally Financial (ALLY) closed at $47.03, marking a +1.55% move from the previous day.

By
This story originally appeared on Zacks

Ally Financial (ALLY) closed at $47.03 in the latest trading session, marking a +1.55% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 1.87%, and the Nasdaq, a tech-heavy index, added 0.57%.

- Zacks

Prior to today's trading, shares of the auto finance company and bank had lost 6.35% over the past month. This has lagged the Finance sector's loss of 5.58% and the S&P 500's loss of 2.46% in that time.

Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. The company is expected to report EPS of $2.01, up 25.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.06 billion, up 3.78% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.59 per share and revenue of $8.08 billion. These totals would mark changes of +183.5% and +20.84%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Ally Financial is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Ally Financial has a Forward P/E ratio of 5.39 right now. For comparison, its industry has an average Forward P/E of 5.79, which means Ally Financial is trading at a discount to the group.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.

To follow ALLY in the coming trading sessions, be sure to utilize Zacks.com.



Investor Alert: Legal Marijuana Looking for big gains?

Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%.

You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Ally Financial Inc. (ALLY): Free Stock Analysis Report

 

To read this article on Zacks.com click here.