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Ally Financial Inc

Ally Financial Inc

ALLY
$42.07USD↓-0.24%-0.10 today

MARKET CAP

12.8B

P/E (TTM)

17.8x

FWD P/E

—

DAY RANGE

$41 – $43

52W RANGE

$36
$47

AI Summary

Stalk
TrimMedium

ALLY has broken a key multi‐touch support zone on strong volume and trades below its EMAs, confirming medium-term bearish control. Price is extended below incoming moving averages, so selling now would chase; instead, wait for a rally into the 9/20-day EMA region near the former support zone (~42.5–43.0) and look for rejection to enter. The long-term trend remains structurally bullish under the rising 200-day SMA, but medium-term distribution dominates.

  • ↑Adjusted EPS of $1.21 in Q2 (+22% YoY)
  • ↑Retail auto originations hit $13.3B (+21% YoY) on 4.6M applications
  • ↓Weak profitability factors indicate poor revenue-to-profit conversion
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The case for & against

Bull & Bear analysis

Bullish

Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company, specializing in automotive financing, insurance, and banking solutions. Positioned within the automotive and consumer finance sectors, Ally leverages advanced technology and strong dealer relationships to enhance its service offerings. The company's growth strategy focuses on capturing market share in the rapidly evolving digital banking landscape while maintaining a robust presence in auto finance, appealing particularly to younger consumers seeking digital-first financial experiences.

Bull says

  • ↑Adjusted EPS of $1.21 in Q2 (+22% YoY)
  • ↑Retail auto originations hit $13.3B (+21% YoY) on 4.6M applications
  • ↑Returned over $300M via buybacks and paid $0.30 dividend; CET1 at 10.1%
  • ↑Digital banking customers grew 7% YoY to 3.6M, boosting Gen-Z engagement
  • ↑High earnings yield and solid book-to-price ratio with moderate leverage
  • ↑Analyst consensus “Buy” with $53.92 target

Bear says

  • ↓Weak profitability factors indicate poor revenue-to-profit conversion
  • ↓Heavy reliance on auto finance exposes Ally to market downturns
  • ↓NIM highly rate-sensitive; rising rates could compress margins
  • ↓Inflation and macro volatility threaten credit performance
  • ↓Limited income return and low size/liquidity factors add risk
  • ↓Some analysts doubt sustainability of growth; financing revenues slipping

Investment themes with ALLY

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 07-21-2026neutral

Transcript signals

Bull points

  • In the second quarter, Ally delivered adjusted earnings per share of 99 cents and core pre-tax income of $418 million. We achieved double-digit year-over-year growth in both metrics, underscoring the benefits of a more focused, streamlined, and purpose-driven institution.
  • Net interest margin, excluding core OID, was 3.45%, expanding 10 basis points quarter per quarter. That's more than offsetting the 20 basis point drag related to the sale of the credit card business.
  • The new business we're putting on the balance sheet today is expected to generate a mid-teens return over its life.

Bear points

  • Overall, deposit balances were down approximately $3 billion quarter over quarter. Now, this is aligned with our April guidance, largely due to seasonal tax outflows.
  • we remain mindful of macroeconomic uncertainty.
  • We do not expect a year-over-year decline in controllable expenses next quarter, driven by non-recurring benefits recorded in 2024. However, we remain committed to prudent expense management going forward.
Read full transcript analysis ›