Ally Financial (ALLY) Outpaces Stock Market Gains: What You Should Know

Ally Financial (ALLY) closed at $31.52 in the latest trading session, marking a +0.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.44%.

Prior to today's trading, shares of the auto finance company and bank had gained 0.74% over the past month. This has outpaced the Finance sector's gain of 0.44% and lagged the S&P 500's gain of 1.51% 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 $0.95 per share, which would represent year-over-year growth of 3.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 13.78% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.74 per share and revenue of $6.33 billion, which would represent changes of +11.98% and +9.15%, respectively, from the prior year.

Investors might also notice 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.

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 0.04% lower within the past month. ALLY is currently a Zacks Rank #3 (Hold).

Digging into valuation, ALLY currently has a Forward P/E ratio of 8.38. This valuation marks a premium compared to its industry's average Forward P/E of 6.96.

Investors should also note that ALLY has a PEG ratio of 0.67 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Consumer Loans stocks are, on average, holding a PEG ratio of 0.67 based on yesterday's closing prices.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ally Financial Inc. (ALLY) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.