Ready to Buy the Dip? This Financial Stock Is a Smart Pick
With the broader market trading in bear market territory in 2022, it's not surprising to see plenty of stocks trading a long way down from previous highs. Some of these stocks raced to untenable valuations in 2020 and 2021, and a decline was inevitable once economic conditions tightened.
Unfortunately, plenty of solid, profitable companies with sensible valuations saw their share prices plummet as well in 2022, caught up in the broad sell-off. Fortunately, these are the stocks that smart long-term investors should focus on accumulating while their prices are temporarily discounted.
One solid company that got caught up in the sell-off is Ally Financial (NYSE: ALLY), a top online bank with a leading presence in auto loans. The fintech stock has something to offer for all types of smart investors: a market-beating dividend, a mammoth share-repurchase program, an attractive valuation, and an excellent return on equity (18%, near the highest in its eight-year history). It also has one of the smartest (and most successful) investors of all time -- Warren Buffett -- buying shares.
Source Fool.com
