ALLY Stock Analysis: Buy, Sell, or Hold?
ALLY - Ally Financial Inc.
$42.93
0.64 (1.51%)
▲
5d:
-4.41%
30d:
-2.37%
90d:
+0.42%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Oct 16, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: ALLY shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: ALLY shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$81.93
Based on 13.3% avg growth
INTRINSIC VALUE TODAY
$50.87
15.6% 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 6.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALLY is currently trading at $42.93, which is considered oversold relative to its 30-day fair value range of $43.21 to $45.26. The stock's valuation (Forward PE: 6.7) is in line with its historical norms (6.9). Remarkably, the market is currently pricing in an annual earnings decline of 1.2% 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 uptrend. The price is currently testing key support at $41.98. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 46/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $53.70 (+25.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, ALLY is in a uptrend. The price is currently testing key support at $41.98. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 46/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $53.70 (+25.1%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$43.21 -
$45.26
Company Quality Score
46/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (46/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 25.1% below Wall St target ($53.70)
- WARNING: Composite score 46/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$43.21 -
$45.26
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$41.98
Resistance Level
$45.15
Current Trend
Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.68
Wall Street Target
$53.70
(+25.1%)
Revenue Growth (YoY)
11.0%
Earnings Growth (YoY)
13.5%
Profit Margin
18.4%
Valuation Discount vs History
-1.2% cheaper
PE vs Historical
6.7 vs 6.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.2%
(market-implied from PE analysis)
1-Year Target
$42.41
(-1%)
2-Year Target
$41.91
(-2%)
3-Year Target
$41.40
(-4%)
3-Yr Target (if PE normalizes)
(PE: 7→7)
$42.77
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 22.5%)
$237.14
(+452%)
Base:
(SPY PE: 6.7, Growth: 22.5%)
$78.92
(+84%)
Bear:
(PE: 5.7, Growth: 22.5%)
$67.08
(+56%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (10x PE), but valuation improves significantly next year (7x PE) as earnings recover.
Trailing PE: 9.95 | Current EPS (TTM): $4.25
Bull Case
$70.35
(+64%)
Analyst growth 51.2%, PE expands to 11.0
Base Case
$63.95
(+49%)
Market implied 51.2%, PE stable at 10.0
Bear Case
$28.76
(-33%)
Severe decline -20.0%, PE contracts to 8.5
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 6.7 to 6.9
Stabilization Target:
$44.35
(+3.3%)
PE Expansion Potential:
+3.3%
Share & Embed Analysis
Last updated: August 23, 2026 12:56 AM ET
Data refreshes hourly during market hours. Next update: 1:56 AM
Data refreshes hourly during market hours. Next update: 1:56 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
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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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