Based on the analysis, ALLY stock is currently in oversold territory with an RSI of 27.3, suggesting potential buying opportunities. However, the stock is part of a financial sector that has been impacted by broader market concerns, including recession fears and tariff impacts, which may affect its performance.

Given the current market conditions and the stock's technical indicators, it may be a good time to consider buying ALLY stock if you believe in its long-term growth potential. However, proceed with caution as the financial sector remains volatile.

What is price prediction 2025 for ALLY Stock?

ALLY stock is predicted to reach $42 by year-end 2025, driven by its strong position in auto lending and focus on core businesses. The stock recently entered oversold territory with an RSI of 27.3, suggesting potential buying opportunities. Analysts have raised price targets, with Morgan Stanley setting a $45 target, indicating confidence in Ally's growth.

What is surpport and resistant level for ALLY Stock?

The S1 support level for ALLY Stock is $32.98 ,The R1 resistant level for ALLY Stock is $36.67.

What is the current price of ALLY Stock?

As of the end of day on 2025-03-14, the price of ALLY Stock was $33.52.

What is the target price of ALLY Stock?

The target price for ALLY Stock according to analyst rating is 45.14, with the highest price target at 56.00 and the lowest at 34.00. Analysts have a Moderate Buy rating on ALLY Stock overall.

What is the market cap of Ally Financial Inc?

The market cap of ALLY is $10.5B.

Is Ally Financial Inc (ALLY) overvalued?

Analysis and Insights

To determine if Ally Financial (ALLY) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

Ally's valuation metrics suggest it is fairly valued relative to its peers. The stock trades at a P/E ratio of 18.12–19.98, which is lower than the industry average, indicating potential undervaluation. The EV/EBITDA ratio of 14.96–17.20 is moderate, while the P/S ratio of 1.39–1.25 reflects reasonable pricing relative to revenue. The P/B ratio of 1.09–0.95 suggests the stock is trading near its book value, a positive sign. The dividend yield of 2.96%–3.33% is attractive for income-focused investors.

Financial Performance:

Ally's total revenue has remained stable, with Q4 showing improvement. Net income rebounded in Q4, indicating stronger profitability. The ROE of 6.13%–7.14% is decent, though not exceptional. The debt-to-equity ratio is high at 137.52%, but the current ratio of 6.13–6.22 indicates good liquidity.

Analyst Sentiment:

Analysts have mixed opinions, with ratings ranging from Strong Buy to Sell. Price targets range from $32 to $56, averaging around $42. This reflects cautious optimism about Ally's prospects despite challenges.

Technical Analysis:

The stock is in oversold territory with an RSI of 27.3, suggesting potential buying opportunities. However, broader market concerns like recession fears and higher yields weigh on the stock.

Conclusion:

While Ally faces challenges like high debt and macroeconomic pressures, its valuation metrics and improving financials suggest it is not significantly overvalued. The stock appears fairly valued, with a compelling dividend yield and potential for margin expansion.

What is Ally Financial Inc (ALLY)'s business?

Ally Financial Inc. is a financial services company. The Company's segments include Automotive Finance operations, Insurance operations, Mortgage Finance operations, and Corporate Finance operations. The Automotive Finance operations segment is engaged in providing services, such as retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, and other services. Insurance operations is a complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. The Mortgage Finance operations segment includes its direct-to-consumer Ally Home mortgage offering and bulk purchases of jumbo and LMI mortgage loans originated by third parties. The Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans.

What is price prediction 2030 for ALLY Stock?

Ally Financial (ALLY) is predicted to reach $60 by 2030, driven by its strategic focus on core businesses like auto lending and insurance, as well as potential margin expansion from falling interest rates. The stock's current oversold condition (RSI of 30.18) and analyst upgrades, such as Morgan Stanley raising its target to $45, suggest strong recovery potential.