Here's Why Ally Financial (ALLY) is a Strong Value Stock

2025-07-28 15:27:37

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It doesn’t matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock’s true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Ally Financial (ALLY)

Founded in 1919, Detroit, MI-based Ally Financial Inc. is a diversified financial services company providing several financial products and services to automotive dealers and their customers. It operates as a financial holding company (FHC) and a bank holding company (BHC).

ALLY is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.8X for the current fiscal year compared to the Financial - Consumer Loans industry’s P/E 10.8X. Additionally, ALLY has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 5.8X. Value investors should also note ALLY’s Price/Sales ratio of 1.5X.

A company’s earnings performance is important for value investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for ALLY, while the Zacks Consensus Estimate has increased $0.12 to $3.57 per share. ALLY also holds an average earnings surprise of 41.3%.

ALLY should be on investors’ short list because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Ally Financial Inc. (ALLY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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