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Ally Financial (ALLY) closed at $52.90 in the latest trading session, marking a +1.93% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.14%.
Heading into today, shares of the auto finance company and bank had gained 1.53% over the past month, lagging the Finance sector's gain of 3.47% and the S&P 500's gain of 3.13% in that time.
Wall Street will be looking for positivity from ALLY as it approaches its next earnings report date. On that day, ALLY is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 50.4%. Meanwhile, our latest consensus estimate is calling for revenue of $2.01 billion, up 19.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.18 per share and revenue of $8.02 billion. These totals would mark changes of +169.97% and +20.01%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ALLY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 4.13% higher within the past month. ALLY is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ALLY has a Forward P/E ratio of 6.35 right now. For comparison, its industry has an average Forward P/E of 7.12, which means ALLY is trading at a discount to the group.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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