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Buying the Post-Earnings Dip in Ally Financial is a Perfect Fit

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With respect to Huey Lewis and the News, investors in Ally Financial are, in my opinion, getting a nice gift with the post-earnings dip in Ally Financial (NYSE: ALLY). The fintech company known for auto lending posted solid earnings on October 21, but the stock dropped 5% for the day.

Ally blew away analysts’ forecasts for earnings by delivering $2.16 per share. That was 14% higher than the consensus estimate and a whopping 72% higher than the $1.25 EPS the company delivered in the same quarter in 2020.

Net revenue came in lighter than forecast at $1.99 billion (as opposed to $2.11 billion). However, it was still an 18% year-over-year increase from the $1.68 billion the company recorded in 2020.

But that wouldn’t seem to be enough to make such a significant drop in ALLY stock. Particularly when the company........

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