Ally Financial (ALLY) Stock: Buy, Sell, or Hold?
ALLY - Ally Financial Inc.
$37.59
-0.24 (-0.63%)
▼
5d:
-0.84%
30d:
-10.86%
90d:
-16.69%
HOLD
LOW Confidence
Analysis Updated: Oct 9, 2026 12:00 AM ET
Earnings: Oct 20, 2026
9d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ALLY shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: ALLY shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$76.96
Based on 13.0% avg growth
INTRINSIC VALUE TODAY
$47.79
21.3% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 6.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALLY is currently trading at $37.59, which is considered oversold relative to its 30-day fair value range of $37.90 to $42.04. From a valuation perspective, the stock is trading at a discount (Forward PE: 6.1) compared to its historical average (6.8). Remarkably, the market is currently pricing in an annual earnings decline of 3.9% over the next few years. This pessimistic expectation contrasts with the company's recent 13.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ALLY is in a downtrend. The price is currently testing key support at $36.65. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ALLY scores 78/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $50.01 (+33.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ALLY is in a downtrend. The price is currently testing key support at $36.65. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: ALLY scores 78/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $50.01 (+33.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$37.90 -
$42.04
Company Quality Score
72/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
90.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (78/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 33.0% below Wall St target ($50.01)
- CAUTION: Bottoming setup, but lagging the sector by 17% over 20 days — wait for relative strength
Trading Range Analysis
30-Day Trading Range
$37.90 -
$42.04
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$36.65
Resistance Level
$38.75
Current Trend
Downtrend
Technical data as of
Oct 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.06
Wall Street Target
$50.01
(+33.0%)
Revenue Growth (YoY)
11.0%
Earnings Growth (YoY)
13.5%
Profit Margin
18.4%
Valuation Discount vs History
-3.9% cheaper
PE vs Historical
6.1 vs 6.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.9%
(market-implied from PE analysis)
1-Year Target
$36.12
(-4%)
2-Year Target
$34.72
(-8%)
3-Year Target
$33.36
(-11%)
3-Yr Target (if PE normalizes)
(PE: 6→7)
$37.45
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 21.9%)
$223.23
(+494%)
Base:
(SPY PE: 6.1, Growth: 21.9%)
$68.09
(+81%)
Bear:
(PE: 5.1, Growth: 21.9%)
$57.88
(+54%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (9x PE), but valuation improves significantly next year (6x PE) as earnings recover.
Trailing PE: 8.90 | Current EPS (TTM): $4.25
Bull Case
$60.76
(+62%)
Analyst growth 46.0%, PE expands to 9.8
Base Case
$55.23
(+47%)
Market implied 46.0%, PE stable at 8.9
Bear Case
$25.72
(-32%)
Severe decline -20.0%, PE contracts to 7.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 6.1 to 6.8
Stabilization Target:
$42.20
(+12.3%)
PE Expansion Potential:
+12.3%
Share & Embed Analysis
Last updated: October 10, 2026 10:05 AM ET
Data refreshes hourly during market hours. Next update: 11:05 AM
Data refreshes hourly during market hours. Next update: 11:05 AM
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Technical Signals Check
Is ALLY showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Douglas R Timmerman
SELL
39675 shares
2026-04-17
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