Investors focused on the Finance space have likely heard of Ally Financial (ALLY), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of ALLY and the rest of the Finance group’s stocks.
Ally Financial is a member of our Finance group, which includes 895 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ALLY is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALLY’s full-year earnings has moved 194.96% higher. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Our latest available data shows that ALLY has returned about 1.60% since the start of the calendar year. Meanwhile, the Finance sector has returned an average of -4.49% on a year-to-date basis. This means that Ally Financial is outperforming the sector as a whole this year.
Looking more specifically, ALLY belongs to the Financial – Consumer Loans industry, a group that includes 22 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have lost about 5.20% so far this year, so ALLY is performing better this group in terms of year-to-date returns.
Investors in the Finance sector will want to keep a close eye on ALLY as it attempts to continue its solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.