Yahoo Finance Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know
Ally Financial (ALLY) closed at $25.14 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.
Prior to today's trading, shares of the auto finance company and bank had lost 17.06% over the past month. This has lagged the Finance sector's loss of 6.53% and the S&P 500's gain of 1.72% in that time.
Investors will be hoping for strength from Ally Financial as it approaches its next earnings release, which is expected to be April 19, 2023. In that report, analysts expect Ally Financial to post earnings of $0.90 per share. This would mark a year-over-year decline of 55.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.05 billion, down 3.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.65 per share and revenue of $8.34 billion, which would represent changes of -39.77% and -1.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Ally Financial. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant within the past month. Ally Financial currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Ally Financial has a Forward P/E ratio of 6.83 right now. For comparison, its industry has an average Forward P/E of 7.16, which means Ally Financial is trading at a discount to the group.
The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
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Ally Financial Inc. (ALLY) : Free Stock Analysis Report
