Is Ally Stock a Buy Now?
Last year ended up being great for banks. The Dow Jones U.S. Banks Index gained 37%, trouncing the S 500's 25% gain. Many banks have performed well despite economic volatility, and the sector got a nice boost from the Federal Reserve's interest rate cut in September.
Ally Financial (NYSE: ALLY) didn't perform nearly as well as many of its peers, gaining only 3% in 2024. Even worse, during the past six months the shares have fallen 13%. It's a mid-sized bank, but it has the status of being the top all-digital bank in the U.S. as well as the top prime auto lender. Those features make it stand out from other financial institutions, and they're reasons investors might want to take a second look. Let's see if Ally stock is a buy right now.
Ally was spun off from General Motors in 2010, and it came into being as an all-digital bank. That was still unusual 15 years ago, but it had a first-mover advantage in building its business, as well as a century of data and experience to guide it. Ally has become the largest all-digital bank in the country, an impressive feat considering the number of banks that are competing in that niche these days.
Source Fool.com
