Canada markets open in 4 hours 58 minutes
  • S&P/TSX

    20,628.92
    -129.42 (-0.62%)
     
  • S&P 500

    4,111.08
    -25.40 (-0.61%)
     
  • DOW

    33,891.02
    -34.99 (-0.10%)
     
  • CAD/USD

    0.7458
    +0.0020 (+0.28%)
     
  • CRUDE OIL

    75.41
    +1.30 (+1.75%)
     
  • BTC-CAD

    30,751.30
    -41.46 (-0.13%)
     
  • CMC Crypto 200

    527.03
    +1.90 (+0.36%)
     
  • GOLD FUTURES

    1,890.00
    +10.50 (+0.56%)
     
  • RUSSELL 2000

    1,957.72
    -27.82 (-1.40%)
     
  • 10-Yr Bond

    3.6340
    0.0000 (0.00%)
     
  • NASDAQ futures

    12,569.25
    +53.75 (+0.43%)
     
  • VOLATILITY

    19.30
    +0.97 (+5.29%)
     
  • FTSE

    7,868.47
    +31.76 (+0.41%)
     
  • NIKKEI 225

    27,685.47
    -8.18 (-0.03%)
     
  • CAD/EUR

    0.6950
    +0.0019 (+0.27%)
     

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

In the latest trading session, Ally Financial (ALLY) closed at $25.36, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 1.44% loss on the day. Elsewhere, the Dow lost 1.03%, while the tech-heavy Nasdaq lost 0.19%.

Coming into today, shares of the auto finance company and bank had lost 2.79% in the past month. In that same time, the Finance sector gained 3.92%, while the S&P 500 gained 6.22%.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release. The company is expected to report EPS of $1, down 50.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.04 billion, down 7.12% from the year-ago period.

ALLY's full-year Zacks Consensus Estimates are calling for earnings of $6.01 per share and revenue of $8.41 billion. These results would represent year-over-year changes of -30.2% and +2.45%, respectively.

Any recent changes to analyst estimates for Ally Financial should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.58% lower. Ally Financial is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Ally Financial's current valuation metrics, including its Forward P/E ratio of 4.18. This valuation marks a discount compared to its industry's average Forward P/E of 6.6.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% 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.

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

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.

Zacks Investment Research