Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know
Ally Financial (ALLY) closed at $31.19 in the latest trading session, marking a +0.39% move from the prior day. This change outpaced the S&P 500's 0.15% gain on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the auto finance company and bank had lost 2.6% over the past month. This has lagged the Finance sector's gain of 0.15% and the S&P 500's gain of 1.32% in that time.
ALLY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.95, up 3.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.64 billion, up 13.78% from the year-ago period.
ALLY's full-year Zacks Consensus Estimates are calling for earnings of $3.74 per share and revenue of $6.33 billion. These results would represent year-over-year changes of +11.98% and +9.15%, respectively.
It is also important to note the recent changes to analyst estimates for ALLY. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. ALLY is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ALLY currently has a Forward P/E ratio of 8.3. This valuation marks a premium compared to its industry's average Forward P/E of 6.72.
We can also see that ALLY currently has a PEG ratio of 0.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Consumer Loans was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Click to get this free report
Ally Financial Inc. (ALLY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.