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

In the latest trading session, Ally Financial (ALLY) closed at $18.37, marking a -1.24% move from the previous day. This move lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.46%.

Investors will be hoping for strength from ALLY as it approaches its next earnings release. The company is expected to report EPS of $0.38, down 60.82% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, down 4.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.50 per share and revenue of $5.97 billion, which would represent changes of -86.56% and -6.62%, respectively, from the prior year.

Any recent changes to analyst estimates for ALLY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 24.17% higher. ALLY is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, ALLY is holding a Forward P/E ratio of 37.45. For comparison, its industry has an average Forward P/E of 9.47, 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 227, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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