Ally Financial Stock in Tactical Outperform List at Evercore

Ally Financial Inc. (NYSE:ALLY) is a prominent player in the financial services sector, offering a range of products including auto financing, online banking, and mortgage services. As the company prepares to release its quarterly earnings on April 17, 2025, analysts are keenly observing its performance metrics. The anticipated earnings per share (EPS) is $0.45, with projected revenue of approximately $1.97 billion.

Beyond these figures, analysts are scrutinizing key financial metrics to gauge Ally's overall health. The company's price-to-earnings (P/E) ratio is 14.86, which shows the price investors are willing to pay for each dollar of earnings. This ratio is crucial for understanding how the market values the company's earnings potential.

Ally's price-to-sales ratio is 0.78, indicating that the market values the company at 78 cents for every dollar of sales. This metric helps investors assess how much they are paying for a company's sales, which can be a useful comparison against competitors in the financial sector.

The enterprise value to sales ratio of 1.48 reflects Ally's total valuation relative to its sales. This ratio is important for understanding the company's valuation in the context of its revenue generation. Additionally, the enterprise value to operating cash flow ratio of 4.69 suggests that the company is valued at nearly 4.7 times its operating cash flow, providing insight into its cash-generating efficiency.

Ally's earnings yield stands at 6.73%, offering a perspective on the earnings generated from each dollar invested in the company. The debt-to-equity ratio of 1.38 indicates the proportion of debt used to finance the company's assets relative to its equity, highlighting the company's leverage and financial structure. As the earnings release approaches, these metrics will be pivotal in assessing Ally's financial performance.

Ally Financial Inc. (NYSE:ALLY) is a prominent player in the financial services sector, offering a range of products including auto financing, online banking, and mortgage services. As the company prepares to release its quarterly earnings on April 17, 2025, analysts are keenly observing its performance metrics. The anticipated earnings per share (EPS) is $0.45, with projected revenue of approximately $1.97 billion.

Beyond these figures, analysts are scrutinizing key financial metrics to gauge Ally's overall health. The company's price-to-earnings (P/E) ratio is 14.86, which shows the price investors are willing to pay for each dollar of earnings. This ratio is crucial for understanding how the market values the company's earnings potential.

Ally's price-to-sales ratio is 0.78, indicating that the market values the company at 78 cents for every dollar of sales. This metric helps investors assess how much they are paying for a company's sales, which can be a useful comparison against competitors in the financial sector.

The enterprise value to sales ratio of 1.48 reflects Ally's total valuation relative to its sales. This ratio is important for understanding the company's valuation in the context of its revenue generation. Additionally, the enterprise value to operating cash flow ratio of 4.69 suggests that the company is valued at nearly 4.7 times its operating cash flow, providing insight into its cash-generating efficiency.

Ally's earnings yield stands at 6.73%, offering a perspective on the earnings generated from each dollar invested in the company. The debt-to-equity ratio of 1.38 indicates the proportion of debt used to finance the company's assets relative to its equity, highlighting the company's leverage and financial structure. As the earnings release approaches, these metrics will be pivotal in assessing Ally's financial performance.

Ally Financial (NYSE:ALLY) is a prominent financial services company known for its digital banking, auto financing, and mortgage services. It competes with other financial institutions like Capital One and Bank of America. On January 23, 2025, Donald Fandetti from Wells Fargo set a price target of $34 for ALLY, while the stock was trading at $39.65, indicating a potential downside of approximately -14.25%.

Fandetti's price target adjustment from $32 to $34 reflects a cautious outlook, maintaining an Underweight rating on ALLY shares. This change follows the company's restatement of results due to an EV accounting change, which caused discrepancies in the fourth quarter. Despite these challenges, ALLY's auto credit performance has improved, positively affecting the 2025 net charge-off outlook.

The current stock price of $39.65 represents a 3.85% increase, or $1.47, from previous levels. Today, ALLY has traded between $39.13 and $41.49. Over the past year, the stock has seen a high of $45.46 and a low of $31.95, indicating some volatility in its performance.

ALLY's market capitalization is approximately $12.08 billion, with a trading volume of 8,159,154 shares on the NYSE. Despite the positive auto credit performance, Wells Fargo highlights that higher interest rates remain a challenge for the stock, potentially impacting its future growth and profitability.

Ally Financial (NYSE:ALLY) is a prominent financial services company known for its digital banking, auto financing, and mortgage services. It competes with other financial institutions like Capital One and Bank of America. On January 23, 2025, Donald Fandetti from Wells Fargo set a price target of $34 for ALLY, while the stock was trading at $39.65, indicating a potential downside of approximately -14.25%.

Fandetti's price target adjustment from $32 to $34 reflects a cautious outlook, maintaining an Underweight rating on ALLY shares. This change follows the company's restatement of results due to an EV accounting change, which caused discrepancies in the fourth quarter. Despite these challenges, ALLY's auto credit performance has improved, positively affecting the 2025 net charge-off outlook.

The current stock price of $39.65 represents a 3.85% increase, or $1.47, from previous levels. Today, ALLY has traded between $39.13 and $41.49. Over the past year, the stock has seen a high of $45.46 and a low of $31.95, indicating some volatility in its performance.

ALLY's market capitalization is approximately $12.08 billion, with a trading volume of 8,159,154 shares on the NYSE. Despite the positive auto credit performance, Wells Fargo highlights that higher interest rates remain a challenge for the stock, potentially impacting its future growth and profitability.

• The consensus price target for Ally Financial Inc. (NYSE:ALLY) has decreased from $41.88 to $40, indicating a slight bearish sentiment among analysts.
• Despite a predicted decline in earnings for the upcoming quarter, analyst David Long from Raymond James sets an optimistic price target of $50, suggesting potential growth.
• The Federal Reserve's decision to lower interest rates could positively impact Ally's financial performance, potentially benefiting earnings.

Ally Financial Inc. (NYSE:ALLY) is a digital financial-services company that provides a variety of financial products and services to consumers, commercial entities, and corporate customers, mainly in the United States and Canada. The company operates through four main segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations.

Over the past year, the consensus price target for Ally has seen a slight decline. A year ago, analysts had a higher average target price of $41.88, which has decreased to $40 in the most recent month. This downward trend may reflect changing market conditions, company performance, or shifts in analyst sentiment regarding the company's future prospects. Despite this, analyst David Long from Raymond James has set a price target of $50, indicating potential growth prospects.

Ally is set to report its third-quarter earnings this Friday. Analysts are predicting a decline in earnings for the company in its upcoming report, as highlighted by Zacks. This report will be crucial in determining the stock's future trajectory amidst the current market conditions. Investors are evaluating whether the stock should be considered for their portfolios, especially with concerns over asset quality.

Ally experienced financial pressure when interest rates began to climb. However, with the Federal Reserve now lowering interest rates, the bank is expected to benefit from an earnings boost. This change in interest rates could positively impact Ally's financial performance, potentially aligning with David Long's optimistic price target of $50 for the stock.

While specific news articles or reports were not provided, changes in consensus price targets often correlate with company earnings reports, strategic business decisions, or broader economic factors. Investors should consider these elements when evaluating the stock's potential and consult recent news releases or financial reports for more detailed insights.

• The consensus price target for Ally Financial Inc. (NYSE:ALLY) has decreased from $41.88 to $40, indicating a slight bearish sentiment among analysts.
• Despite a predicted decline in earnings for the upcoming quarter, analyst David Long from Raymond James sets an optimistic price target of $50, suggesting potential growth.
• The Federal Reserve's decision to lower interest rates could positively impact Ally's financial performance, potentially benefiting earnings.

Ally Financial Inc. (NYSE:ALLY) is a digital financial-services company that provides a variety of financial products and services to consumers, commercial entities, and corporate customers, mainly in the United States and Canada. The company operates through four main segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations.

Over the past year, the consensus price target for Ally has seen a slight decline. A year ago, analysts had a higher average target price of $41.88, which has decreased to $40 in the most recent month. This downward trend may reflect changing market conditions, company performance, or shifts in analyst sentiment regarding the company's future prospects. Despite this, analyst David Long from Raymond James has set a price target of $50, indicating potential growth prospects.

Ally is set to report its third-quarter earnings this Friday. Analysts are predicting a decline in earnings for the company in its upcoming report, as highlighted by Zacks. This report will be crucial in determining the stock's future trajectory amidst the current market conditions. Investors are evaluating whether the stock should be considered for their portfolios, especially with concerns over asset quality.

Ally experienced financial pressure when interest rates began to climb. However, with the Federal Reserve now lowering interest rates, the bank is expected to benefit from an earnings boost. This change in interest rates could positively impact Ally's financial performance, potentially aligning with David Long's optimistic price target of $50 for the stock.

While specific news articles or reports were not provided, changes in consensus price targets often correlate with company earnings reports, strategic business decisions, or broader economic factors. Investors should consider these elements when evaluating the stock's potential and consult recent news releases or financial reports for more detailed insights.