Ally Financial Stock Performance

ALLY
 Stock
  

USD 29.23  1.40  5.03%   

The firm shows a Beta (market volatility) of 1.5725, which signifies a somewhat significant risk relative to the market. Let's try to break down what Ally Financial's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Ally Financial will likely underperform. Even though it is essential to pay attention to Ally Financial historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Ally Financial exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Ally Financial has an expected return of -0.21%. Please be advised to confirm Ally Financial treynor ratio, as well as the relationship between the expected short fall and day median price to decide if Ally Financial performance from the past will be repeated at some point in the near future.
  
Ally Financial Performance
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Over the last 90 days Ally Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors. ...more

Ally Financial Price Channel

Fifty Two Week Low27.77
Target High Price72.00
Payout Ratio12.39%
Fifty Two Week High56.28
Target Low Price34.00
Trailing Annual Dividend Yield2.66%

Ally Financial Relative Risk vs. Return Landscape

If you would invest  3,414  in Ally Financial on July 6, 2022 and sell it today you would lose (491.00)  from holding Ally Financial or give up 14.38% of portfolio value over 90 days. Ally Financial is currently does not generate positive expected returns and assumes 2.5714% risk (volatility on return distribution) over the 90 days horizon. In different words, 22% of stocks are less volatile than Ally Financial, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Ally Financial is expected to under-perform the market. In addition to that, the company is 2.13 times more volatile than its market benchmark. It trades about -0.08 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.06 per unit of volatility.

Ally Financial Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Ally Financial's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Ally Financial, and traders can use it to determine the average amount a Ally Financial's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0831

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Estimated Market Risk
 2.57
  actual daily
 
 22 %
of total potential
 
2222
Expected Return
 -0.21
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 0 %
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Risk-Adjusted Return
 -0.08
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Based on monthly moving average Ally Financial is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Ally Financial by adding it to a well-diversified portfolio.

About Ally Financial Performance

To evaluate Ally Financial Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Ally Financial generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Ally Financial Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Ally Financial market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Ally Financial's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Ally Financial Inc., a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan. Ally Financial operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 10500 people.

Things to note about Ally Financial

Checking the ongoing alerts about Ally Financial for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Ally Financial help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Ally Financial Alerts

Equity Alerts and Improvement Suggestions

Ally Financial generated a negative expected return over the last 90 days
Ally Financial has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 24.76 B in liabilities with Debt to Equity (D/E) ratio of 275.8, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Ally Financial has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Ally Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Ally Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Ally Financial sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Ally Financial to invest in growth at high rates of return. When we think about Ally Financial's use of debt, we should always consider it together with cash and equity.
Over 99.0% of Ally Financial shares are held by institutions such as insurance companies
On 15th of August 2022 Ally Financial paid $ 0.3 per share dividend to its current shareholders
Latest headline from www.investorplace.com: 7 Under-50 Sleeper Stocks to Buy Before Wall Street Wakes Up - InvestorPlace
Please continue to Trending Equities. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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When running Ally Financial price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.
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Is Ally Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ally Financial. If investors know Ally Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ally Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ally Financial is measured differently than its book value, which is the value of Ally Financial that is recorded on the company's balance sheet. Investors also form their own opinion of Ally Financial's value that differs from its market value or its book value, called intrinsic value, which is Ally Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ally Financial's market value can be influenced by many factors that don't directly affect Ally Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ally Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Ally Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ally Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.