Ally Financial Inc. is a Strong Stock to Watch This Quarter

Ally FinancialHolding Company Ally Financial Inc. (NYSE: ALLY) entered 2019 with two strong years of growth behind it. In 2017, the company increased its income by 15.70%. In 2018, growth was even more impressive with year over year interest income up 17.18%. This year it continues to perform well, and its stock has rallied since January. What makes this a stock to watch in 2019?

Continued revenue growth is one reason for a surge of activity in this stock. In the most recent quarter, the company reported $1.552 billion of net revenue, compared to $1.458 billion in the year ago period. Earnings per share was reported at $1.46, a significant increase over the $0.81 that was reported a year ago.

The company’s diversification also makes it attractive. It primarily offers loans and other financial services to consumers and corporate clients. It engages in the automotive sector and has recently expanded to engage in health credit services. Diversification will help the company to maintain its revenue streams in a low interest rate environment.

This stock comes with an attractive dividend of $0.17, resulting in a yield of 1.99% at today’s stock price. It has generated returns of 52.2% (including dividends) over the last five years. Financial stocks are a mixed bag today, but revenue performance and the dividend make this one a stock to watch.

Key Data:

  • 1 Year Price Growth: 66%
  • YTD Price Growth: 93%
  • 3 Month Price Growth: 04%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

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