Ally Financial (NYSE: ALLY) Continues Outpacing Stock Market Gains in Fintech sector

Ally Financial (ALLY) closed the most recent trading day at $43.16, moving +1.96% from the previous trading session. This change outpaced the S&P 500’s 1.84% gain on the day. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.67%.

Heading into today, shares of the auto finance company and bank had lost 2.89% over the past month, lagging the Finance sector’s gain of 0.54% and the S&P 500’s loss of 0.5% in that time.

Ally Financial will be looking to display strength as it nears its next earnings release. On that day, Ally Financial is projected to report earnings of $1.95 per share, which would represent a year-over-year decline of 16.31%. Meanwhile, our latest consensus estimate is calling for revenue of $2.22 billion, up 6.27% from the prior-year quarter.

For the full year, Consensus Estimates are projecting earnings of $7.71 per share and revenue of $8.9 billion, which would represent changes of -10.45% and +8.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Ally Financial. These revisions help to show the ever-changing nature of near-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.

Investors should also note Ally Financial’s current valuation metrics, including its Forward P/E ratio of 5.49. Its industry sports an average Forward P/E of 6.39, so we one might conclude that Ally Financial is trading at a discount comparatively.

It is also worth noting that ALLY currently has a PEG ratio of 0.17. 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. The Financial – Consumer Loans industry currently had an average PEG ratio of 0.36 as of yesterday’s close

-7.19%.