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

In the latest trading session, Ally Financial (ALLY) closed at $24.22, marking a +0.87% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.

Heading into today, shares of the auto finance company and bank had lost 21.25% over the past month, lagging the Finance sector's loss of 9.49% and the S&P 500's loss of 1.48% in that time.

Investors will be hoping for strength from Ally Financial as it approaches its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, down 3.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.65 per share and revenue of $8.36 billion. These totals would mark changes of -39.77% and -0.8%, respectively, from last year.

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Investors should also note any recent changes to analyst estimates for Ally Financial. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 remained stagnant. Ally Financial currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Ally Financial is currently trading at a Forward P/E ratio of 6.57. Its industry sports an average Forward P/E of 6.86, so we one might conclude that Ally Financial is trading at a discount comparatively.

The Financial - Consumer Loans industry is part of the Finance sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% 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.

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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