Is Ally Financial Stock a Good Investment?
Ally Financial Investment Advice | ALLY |
- Examine Ally Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ally Financial's leadership team and their track record. Good management can help Ally Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Ally Financial's business and its evolving consumer preferences.
- Compare Ally Financial's performance and market position to its competitors. Analyze how Ally Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Ally Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ally Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ally Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ally Financial is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Ally Financial Stock
Researching Ally Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.99. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ally Financial has Price/Earnings To Growth (PEG) ratio of 0.85. The entity last dividend was issued on the 30th of April 2024. The firm had 310:1 split on the 10th of April 2014.
To determine if Ally Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ally Financial's research are outlined below:
| Ally Financial has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| The company currently holds 20.23 B in liabilities with Debt to Equity (D/E) ratio of 275.8, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Ally Financial has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Ally Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Ally Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Ally Financial sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Ally to invest in growth at high rates of return. When we think about Ally Financial's use of debt, we should always consider it together with cash and equity. | |
| Over 81.0% of Ally Financial shares are held by institutions such as insurance companies | |
| Latest headline from zacks.com: Sallie Maes Q1 Earnings Beat Estimates, Expenses Rise |
Ally Financial Quarterly Accounts Payable |
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Ally Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ally Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ally Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 17th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Ally Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ally Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-10-25 | 2017-09-30 | 0.59 | 0.65 | 0.06 | 10 | ||
2017-07-27 | 2017-06-30 | 0.52 | 0.58 | 0.06 | 11 | ||
2019-07-18 | 2019-06-30 | 0.88 | 0.97 | 0.09 | 10 | ||
2019-01-30 | 2018-12-31 | 0.83 | 0.92 | 0.09 | 10 | ||
2018-01-30 | 2017-12-31 | 0.61 | 0.7 | 0.09 | 14 | ||
2014-07-29 | 2014-06-30 | 0.33 | 0.42 | 0.09 | 27 | ||
2015-04-28 | 2015-03-31 | 0.42 | 0.52 | 0.1 | 23 | ||
2018-10-25 | 2018-09-30 | 0.8 | 0.91 | 0.11 | 13 |
Ally Financial Target Price Consensus
We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Ally target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Ally Financial's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 19 | Buy |
Most Ally analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Ally stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Ally Financial, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationAlly Financial Target Price Projection
Ally Financial's current and average target prices are 39.30 and 30.06, respectively. The current price of Ally Financial is the price at which Ally Financial is currently trading. On the other hand, Ally Financial's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Ally Financial Market Quote on 27th of April 2024
Target Price
Analyst Consensus On Ally Financial Target Price
Ally Financial Analyst Ratings
Ally Financial's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Ally Financial stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Ally Financial's financials, market performance, and future outlook by experienced professionals. Ally Financial's historical ratings below, therefore, can serve as a valuable tool for investors.Know Ally Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ally Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ally Financial backward and forwards among themselves. Ally Financial's institutional investor refers to the entity that pools money to purchase Ally Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Sessa Capital Im Lp | 2023-09-30 | 3.9 M | Bank Of New York Mellon Corp | 2023-12-31 | 3.7 M | Fmr Inc | 2023-12-31 | 3.7 M | Moore Capital Management, Lp | 2023-12-31 | 3.6 M | First Manhattan Co. Llc | 2023-12-31 | 3.6 M | Punch Card Management, L.p. | 2023-12-31 | 3 M | Northern Trust Corp | 2023-12-31 | 2.9 M | Lsv Asset Management | 2023-12-31 | 2.9 M | Donald Smith & Co Inc | 2023-12-31 | 2.8 M | Berkshire Hathaway Inc | 2023-09-30 | 29 M | Blackrock Inc | 2023-12-31 | 28.5 M |
Ally Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 12.09 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Ally Financial's market, we take the total number of its shares issued and multiply it by Ally Financial's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Market Cap |
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Ally Financial's profitablity analysis
Ally Financial's profitability indicators refer to fundamental financial ratios that showcase Ally Financial's ability to generate income relative to its revenue or operating costs. If, let's say, Ally Financial is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Ally Financial's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Ally Financial's profitability requires more research than a typical breakdown of Ally Financial's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.07 | 0.05 |
Determining Ally Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Ally Financial is a good buy. For example, gross profit margin measures Ally Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ally Financial's profitability and make more informed investment decisions.
The data published in Ally Financial's official financial statements usually reflect Ally Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Ally Financial. For example, before you start analyzing numbers published by Ally accountants, it's critical to develop an understanding of what Ally Financial's liquidity, profitability, and earnings quality are in the context of the Consumer Finance space in which it operates.
Please note, the presentation of Ally Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ally Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Ally Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Ally Financial. Please utilize our Beneish M Score to check the likelihood of Ally Financial's management manipulating its earnings.
Evaluate Ally Financial's management efficiency
At this time, Ally Financial's Return On Tangible Assets are fairly stable compared to the past year. Return On Assets is likely to rise to 0.01 in 2024, whereas Return On Capital Employed is likely to drop 0.01 in 2024. At this time, Ally Financial's Total Current Assets are fairly stable compared to the past year. Net Tangible Assets is likely to rise to about 11.4 B in 2024, whereas Total Assets are likely to drop slightly above 160.3 B in 2024. Ally Financial's management efficiency ratios could be used to measure how well Ally Financial manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 45.32 | 62.13 | |
| Net Current Asset Value | 0.00 | 0.00 | |
| Tangible Asset Value | 0.00 | 0.00 | |
| Tangible Book Value Per Share | 42.88 | 49.68 | |
| Enterprise Value Over EBITDA | 10.26 | 8.29 | |
| Price Book Value Ratio | 0.77 | 0.46 | |
| Enterprise Value Multiple | 10.26 | 8.29 | |
| Price Fair Value | 0.77 | 0.46 | |
| Enterprise Value | 88.5 B | 140.9 B |
The analysis of Ally Financial's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Ally Financial's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Ally Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0302 | Forward Dividend Yield 0.0302 | Forward Dividend Rate 1.2 | Beta 1.382 |
Basic technical analysis of Ally Stock
As of the 27th of April, Ally Financial shows the Risk Adjusted Performance of 0.0509, downside deviation of 1.77, and Mean Deviation of 1.41. Ally Financial technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Ally Financial, which can be compared to its peers. Please confirm Ally Financial downside deviation, treynor ratio, as well as the relationship between the Treynor Ratio and expected short fall to decide if Ally Financial is priced correctly, providing market reflects its regular price of 39.3 per share. Given that Ally Financial has jensen alpha of 0.1263, we suggest you to validate Ally Financial's prevailing market performance to make sure the company can sustain itself at a future point.Ally Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ally Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ally Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ally Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bradley Brown few days ago Acquisition by Bradley Brown of 29003 shares of Ally Financial at 25.86 subject to Rule 16b-3 | ||
David Reilly over three weeks ago Acquisition by David Reilly of 801 shares of Ally Financial subject to Rule 16b-3 |
Ally Financial's Outstanding Corporate Bonds
Ally Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ally Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ally bonds can be classified according to their maturity, which is the date when Ally Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US02005NBH26 Corp BondUS02005NBH26 | View | |
| Ally Financial 575 Corp BondUS02005NBF69 | View | |
| US02005NBA72 Corp BondUS02005NBA72 | View | |
| ALLY 22 02 NOV 28 Corp BondUS02005NBP42 | View | |
| ALLY 47 Corp BondUS02005NBM11 | View | |
| ALLY 47 Corp BondUS02005NBN93 | View | |
| ALLY FINANCIAL INC Corp BondUS02005NBJ81 | View | |
| Ally Financial 5125 Corp BondUS02005NAV29 | View |
Understand Ally Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ally Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0509 | |||
| Market Risk Adjusted Performance | (3.07) | |||
| Mean Deviation | 1.41 | |||
| Semi Deviation | 1.59 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 1411.13 | |||
| Standard Deviation | 1.88 | |||
| Variance | 3.53 | |||
| Information Ratio | 0.0234 | |||
| Jensen Alpha | 0.1263 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.0248 | |||
| Treynor Ratio | (3.08) | |||
| Maximum Drawdown | 8.72 | |||
| Value At Risk | (2.46) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 3.13 | |||
| Semi Variance | 2.53 | |||
| Expected Short fall | (1.46) | |||
| Skewness | 0.596 | |||
| Kurtosis | 2.08 |
| Risk Adjusted Performance | 0.0509 | |||
| Market Risk Adjusted Performance | (3.07) | |||
| Mean Deviation | 1.41 | |||
| Semi Deviation | 1.59 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 1411.13 | |||
| Standard Deviation | 1.88 | |||
| Variance | 3.53 | |||
| Information Ratio | 0.0234 | |||
| Jensen Alpha | 0.1263 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | 0.0248 | |||
| Treynor Ratio | (3.08) | |||
| Maximum Drawdown | 8.72 | |||
| Value At Risk | (2.46) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 3.13 | |||
| Semi Variance | 2.53 | |||
| Expected Short fall | (1.46) | |||
| Skewness | 0.596 | |||
| Kurtosis | 2.08 |
Consider Ally Financial's intraday indicators
Ally Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ally Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 27598.0 | |||
| Daily Balance Of Power | 0.3137 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 39.44 | |||
| Day Typical Price | 39.39 | |||
| Price Action Indicator | (0.06) | |||
| Period Momentum Indicator | 0.16 |
Ally Financial Corporate Filings
| 22nd of April 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
8K | 18th of April 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 5th of April 2024 Other Reports | ViewVerify | |
| 22nd of March 2024 Other Reports | ViewVerify |
Ally Stock media impact
Far too much social signal, news, headlines, and media speculation about Ally Financial that are available to investors today. That information is available publicly through Ally media outlets and privately through word of mouth or via Ally internal channels. However, regardless of the origin, that massive amount of Ally data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ally Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ally Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ally Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ally Financial alpha.
Ally Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ally Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ally Financial Historical Investor Sentiment
Investor biases related to Ally Financial's public news can be used to forecast risks associated with an investment in Ally. The trend in average sentiment can be used to explain how an investor holding Ally can time the market purely based on public headlines and social activities around Ally Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Ally Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ally Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Ally Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Ally Financial.
Be your own money manager
Our tools can tell you how much better you can do entering a position in Ally Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Ally Financial Corporate Directors
Ally Financial corporate directors refer to members of an Ally Financial board of directors. The board of directors generally takes responsibility for the Ally Financial's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Ally Financial's board members must vote for the resolution. The Ally Financial board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Robert Blakely | Independent Director | Profile | |
| John Stack | Independent Director | Profile | |
| Kenneth Bacon | Independent Director | Profile | |
| Katryn Blake | Independent Director | Profile |
How to buy Ally Stock?
To provide specific investment advice or recommendations on Ally Financial stock, we recommend investors consider the following general factors when evaluating Ally Financial. This will help you to make an informed decision on whether to include Ally Financial in one of your diversified portfolios:- Examine Ally Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ally Financial's leadership team and their track record. Good management can help Ally Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Ally Financial's business and its evolving consumer preferences.
- Compare Ally Financial's performance and market position to its competitors. Analyze how Ally Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Ally Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ally Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ally Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ally Financial is a good investment.
Already Invested in Ally Financial?
The danger of trading Ally Financial is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ally Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ally Financial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ally Financial is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ally Financial offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ally Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ally Financial Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ally Financial Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ally Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Ally Stock please use our How to Invest in Ally Financial guide.You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for Ally Stock analysis
When running Ally Financial's price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.
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Is Ally Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ally Financial. If investors know Ally will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ally Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.56) | Dividend Share 1.2 | Earnings Share 2.45 | Revenue Per Share 22.683 | Quarterly Revenue Growth (0.10) |
The market value of Ally Financial is measured differently than its book value, which is the value of Ally that is recorded on the company's balance sheet. Investors also form their own opinion of Ally Financial's value that differs from its market value or its book value, called intrinsic value, which is Ally Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ally Financial's market value can be influenced by many factors that don't directly affect Ally Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ally Financial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ally Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ally Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.