Financial companies are outperforming this year amid a recovering economy and slowly rising interest rates. Ally Financial stock, for example, is performing well in the Financial Services-Specialty group. The group is ranked a lofty No. 17 on IBD’s list of 197 industry groups. Ally Financial (ALLY) is forming a base with a 56.71 entry point as it gets set to report its next round of earnings. It’s slated to release second quarter results early on the morning of July 20.
Ally Financial stock has a current first-stage consolidation formation. First and second stage bases are more likely to succeed than later stage bases. The Detroit-based company is among the country’s largest providers of auto financing options.
Ally Financial Stock In Top 9% For Relative Strength
Among key ratings, Ally Financial stock boasts a 91 Relative Strength Rating, putting it in the top 9% of all stocks. The RS Rating tracks a stock’s share price performance over the last 52 weeks, and then compares the result to that of all other stocks. Leading stocks tend to have RS Ratings of 80 before big price runs.
Additionally, Ally Financial stock carries an 88 EPS Rating, of a best-possible 99. One yellow flag is its Accumulation/Distribution Rating. It has an A/D Rating of E on an A+ to E scale. The rating gauges stock buys by institutional investors such as mutual funds, university endowments and other large investors. The weak E rating indicates the Street will need more convincing before big money plows into Ally Financial stock.
In late March 2020, Ally Financial stock dropped to a 10.22 low amid the coronavirus crash. It’s soared nearly 400% since then, and traded at 50.77 Thursday afternoon, down fractionally on a difficult day for the market.
Regarding top and bottom line numbers, Ally Financial has posted four quarters of improving earnings numbers. Sales gains have also risen during the same period. In Q1, the company reported a 348% surge in year-over-year EPS growth, to $2.11. Sales rose a mild 2%, to $2.66 billion, reversing from mild sales declines the prior three periods.
The Street Sees 120% Profit Growth This Year
Analysts are looking for EPS growth of 93% for the quarter, when it reports next week. And consensus is for 120% growth for the full year.
Ally Financial stock earns the No. 14 rank among its peers in the Financial Services-Specialty industry group. A-Mark Precious Metals (AMRK), Equifax (EFX) and Nasdaq (NDAQ) are among the top 5 highly rated stocks within the group.
Buying a stock just ahead of earnings can be risky since you typically don’t have enough time to establish a profit cushion before the latest quarterly numbers come out. Be sure to follow sound buy and sell rules to minimize your exposure.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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