Yahoo Finance Ally Financial (ALLY) Dips More Than Broader Markets: What You Should Know
Ally Financial (ALLY) closed the most recent trading day at $30.69, moving -0.42% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Heading into today, shares of the auto finance company and bank had lost 4.11% over the past month, lagging the Finance sector's loss of 2.26% and the S&P 500's loss of 3.29% in that time.
Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. This is expected to be October 19, 2022. The company is expected to report EPS of $1.80, down 16.67% from the prior-year quarter. 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 $7.24 per share and revenue of $8.61 billion, which would represent changes of -15.91% and +4.93%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Ally Financial. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ally Financial is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 4.26. For comparison, its industry has an average Forward P/E of 5.94, which means Ally Financial is trading at a discount to the group.
It is also worth noting that ALLY currently has a PEG ratio of 0.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Consumer Loans was holding an average PEG ratio of 0.25 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% 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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