ALLY Stock Analysis: Buy, Sell, or Hold?
ALLY - Ally Financial Inc.
$42.28
-0.68 (-1.58%)
ā¼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Apr 16, 2026
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1 traders called ALLY this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
ā BUY SIGNAL: ALLY appears deeply undervalued. Market expects -5.0% annual earnings decline despite 265% recent earnings growth. Contrarian opportunity at discount to historical valuation.
ā BUY SIGNAL: ALLY appears deeply undervalued. Market expects -5.0% annual earnings decline despite 265% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$86.77
Based on 11.8% avg growth
INTRINSIC VALUE TODAY
$53.88
21.5% 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 7.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALLY is currently trading at $42.28, which is considered oversold relative to its 30-day fair value range of $42.64 to $46.22. From a valuation perspective, the stock is trading at a discount (Forward PE: 6.8) compared to its historical average (7.9). Remarkably, the market is currently pricing in an annual earnings decline of 5.0% over the next few years. This pessimistic expectation contrasts with the company's recent 265.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, ALLY is in a uptrend. Immediate support is located at $39.70, while resistance sits at $44.10.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $53.00 (+23.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, ALLY is in a uptrend. Immediate support is located at $39.70, while resistance sits at $44.10.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $53.00 (+23.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$42.64 -
$46.22
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 23.4% below Wall St target ($53.00)
Fair Price Analysis
30-Day Fair Range
$42.64 -
$46.22
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$39.70
Resistance Level
$44.11
Current Trend
Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
6.79
Wall Street Target
$53.00
(+23.4%)
Revenue Growth (YoY)
12.0%
Earnings Growth (YoY)
265.4%
Profit Margin
11.6%
Valuation Discount vs History
-5.0% cheaper
PE vs Historical
6.8 vs 7.9
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.0%
(market-implied from PE analysis)
1-Year Target
$40.81
(-5%)
2-Year Target
$38.77
(-10%)
3-Year Target
$36.83
(-14%)
3-Yr Target (if PE normalizes)
(PE: 7ā8)
$42.85
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 19.6%)
$241.63
(+462%)
Base:
(SPY PE: 6.8, Growth: 19.6%)
$73.57
(+71%)
Bear:
(PE: 5.8, Growth: 19.6%)
$62.54
(+46%)
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Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (7x PE) as earnings recover.
Trailing PE: 17.85 | Current EPS (TTM): $2.37
Bull Case
$93.06
(+120%)
Analyst growth 100.0%, PE expands to 19.6
Base Case
$84.60
(+100%)
Market implied 100.0%, PE stable at 17.9
Bear Case
$28.76
(-32%)
Severe decline -20.0%, PE contracts to 15.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 6.8 to 7.9
Stabilization Target:
$49.98
(+16.3%)
PE Expansion Potential:
+16.3%
Last updated: January 31, 2026 2:03 AM ET
Data refreshes hourly during market hours. Next update: 3:03 AM
Data refreshes hourly during market hours. Next update: 3:03 AM
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Technical Signals Check
Is ALLY showing a specific setup today?
Insider Activity (6 Months)
1
Buys
2
Sells
Net
INSIDERS SELLING
Recent Transactions
Kathleen L Patterson
SELL
29000 shares
2025-10-22
Michael T. McCaul
BUY
2025-09-24
Michael T. McCaul
SELL
2025-08-22
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Professional options setups generated by AI based on today's ALLY price and gamma walls.
