2024-01-29 00:43:18 ET
Summary
- I believe Ally stock is currently undervalued, but I'd wait for a cheaper entry point because of possibly excessive management optimism.
- Ally's earnings are largely driven by loan charge-offs and net interest margin.
- I expect a 1.5% charge-off rate and a NIM of 3.6-3.7% for Ally in 2025, resulting in an EPS estimate of $5.50.
It’s hard today for a value investor to find cheap stocks, what with the current record high market valuations. So when this value investor spied Ally Financial (ALLY), a stock that reached $57 in ’21, selling at $33 (now $37 after its ‘Q4 EPS), he figured it was worth taking a harder look....
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For further details see:
Neutral On Ally Financial Based On My 2025 EPS Forecast Math