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

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Ally Financial (ALLY) closed at $33.49 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.15%.

Coming into today, shares of the auto finance company and bank had lost 17.84% in the past month. In that same time, the Finance sector lost 4.55%, while the S&P 500 lost 3.49%.

Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. This is expected to be July 19, 2022. On that day, Ally Financial is projected to report earnings of $1.95 per share, which would represent a year-over-year decline of 16.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 6.27% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.71 per share and revenue of $8.9 billion. These totals would mark changes of -10.45% and +8.41%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ally Financial. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Ally Financial currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Ally Financial has a Forward P/E ratio of 4.3 right now. Its industry sports an average Forward P/E of 5.33, so we one might conclude that Ally Financial is trading at a discount comparatively.

Meanwhile, ALLY's PEG ratio is currently 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 industry currently had an average PEG ratio of 0.3 as of yesterday's close.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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.


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