Is Ally Financial a Buy?
Ally Financial (NYSE: ALLY) is a financial services company with a focus on providing lending for auto loans. The first half of 2020 was especially tough for the company, as the world was coming to grips with how to handle the coronavirus pandemic. The dramatic slowdown in economic activity hurt automotive sales, causing Ally's financing to take a hit early in the year.
But the company's earnings bounced back strong in the second half of 2020. And with a vaccine rollout in progress and economic activity expected to pick up, the company should get an added boost in 2021. Does this make Ally Financial a buy?
Ally Financial managed to increase revenue by 6% year over year to a record $6.7 billion, despite the economic backdrop. This growth was helped by strong automotive financing, which saw the company process 12.1 million consumer applications, resulting in $35.1 billion in financing volume during the year.
Source Fool.com
