ALLY Stock Analysis: Buy, Sell, or Hold?
ALLY - Ally Financial Inc.
$39.23
1.32 (3.48%)
ā²
5d:
-0.73%
30d:
-1.31%
90d:
-14.29%
BUY
HIGH Confidence
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 17, 2026
15d
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Interactive Price Chart (1 Month)
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Bottom Line:
ā BUY SIGNAL: ALLY appears deeply undervalued. Market expects -4.4% annual earnings decline despite 265% recent earnings growth. Contrarian opportunity at discount to historical valuation.
ā BUY SIGNAL: ALLY appears deeply undervalued. Market expects -4.4% 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
$79.57
Based on 12.3% avg growth
INTRINSIC VALUE TODAY
$49.40
20.6% 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 7.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ALLY is currently trading at $39.23, which is considered fair relative to its 30-day fair value range of $37.28 to $40.47. From a valuation perspective, the stock is trading at a discount (Forward PE: 6.2) compared to its historical average (7.1). Remarkably, the market is currently pricing in an annual earnings decline of 4.4% 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. The price is approaching resistance at $40.23. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.5% recently.
Market Sentiment: ALLY has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $52.48 (+33.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, ALLY is in a uptrend. The price is approaching resistance at $40.23. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.5% recently.
Market Sentiment: ALLY has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $52.48 (+33.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$37.28 -
$40.47
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
88.1%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.5%)
- BULLISH: Trading 33.8% below Wall St target ($52.48)
Fair Price Analysis
30-Day Fair Range
$37.28 -
$40.47
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$36.97
Resistance Level
$40.24
Current Trend
Uptrend
Technical data as of
Mar 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.21
Wall Street Target
$52.48
(+33.8%)
Revenue Growth (YoY)
12.0%
Earnings Growth (YoY)
265.4%
Profit Margin
11.6%
Valuation Discount vs History
-4.4% cheaper
PE vs Historical
6.2 vs 7.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.4%
(market-implied from PE analysis)
1-Year Target
$37.50
(-4%)
2-Year Target
$35.85
(-9%)
3-Year Target
$34.28
(-13%)
3-Yr Target (if PE normalizes)
(PE: 6ā7)
$39.19
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 20.6%)
$247.52
(+531%)
Base:
(SPY PE: 6.2, Growth: 20.6%)
$68.77
(+75%)
Bear:
(PE: 5.3, Growth: 20.6%)
$58.46
(+49%)
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Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (16x PE), but valuation improves significantly next year (6x PE) as earnings recover.
Trailing PE: 16.22 | Current EPS (TTM): $2.37
Bull Case
$84.55
(+116%)
Analyst growth 100.0%, PE expands to 17.8
Base Case
$76.86
(+96%)
Market implied 100.0%, PE stable at 16.2
Bear Case
$26.13
(-33%)
Severe decline -20.0%, PE contracts to 13.8
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 6.2 to 7.1
Stabilization Target:
$44.85
(+14.3%)
PE Expansion Potential:
+14.3%
Share & Embed Analysis
Last updated: March 31, 2026 9:23 PM ET
Data refreshes hourly during market hours. Next update: 10:23 PM
Data refreshes hourly during market hours. Next update: 10:23 PM
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Technical Signals Check
Is ALLY showing a specific setup today?
Insider Activity (6 Months)
4
Buys
2
Sells
+
Net
INSIDERS BUYING
Recent Transactions
Ro Khanna
BUY
2026-02-12
Russell E Hutchinson
BUY
11566 shares
2026-01-27
Michael George Rhodes
BUY
23800 shares
2026-01-23
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