In the latest trading session, Ally Financial (ALLY) closed at $19.46, marking a +0.83% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.52%.
Coming into today, shares of the auto finance company and bank had lost 4.6% in the past month. In that same time, the Finance sector gained 0.22%, while the S&P 500 gained 2.08%.
ALLY will be looking to display strength as it nears its next earnings release, which is expected to be July 17, 2020. On that day, ALLY is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 68.04%. Meanwhile, our latest consensus estimate is calling for revenue of $1.48 billion, down 4.89% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.73 per share and revenue of $5.94 billion. These totals would mark changes of -80.38% and -7.17%, respectively, from last year.
It is also important to note the 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 11.03% lower. ALLY is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that ALLY has a Forward P/E ratio of 26.29 right now. For comparison, its industry has an average Forward P/E of 12.57, which means ALLY is trading at a premium to the group.
The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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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