Ally Financial (ALLY) Stock Moves -0.52%: What You Should Know

In the latest trading session, Ally Financial (ALLY) closed at $32.48, marking a -0.52% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.

Heading into today, shares of the auto finance company and bank had lost 10.06% over the past month, lagging the Finance sector's loss of 7.06% and the S&P 500's loss of 9.06% in that time.

Wall Street will be looking for positivity from Ally Financial as it approaches its next earnings report date. In that report, analysts expect Ally Financial to post earnings of $1.81 per share. This would mark a year-over-year decline of 16.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.17 billion, up 9.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $8.63 billion. These totals would mark changes of -16.84% and +5.2%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Ally Financial. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.61% lower. 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 4.56 right now. For comparison, its industry has an average Forward P/E of 5.89, which means Ally Financial is trading at a discount to the group.

Investors should also note that ALLY has a PEG ratio of 0.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Consumer Loans was holding an average PEG ratio of 0.26 at yesterday's closing price.

The Financial - Consumer Loans industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% 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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