Time to BUY. Time to become an $ALLY
Key Stats:
Technical Reasons for Upside:
Fundamental Reasons for Upside:
Potential Paths to Profit:
Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
- Market Cap: 12.18B
- P/E Ratio (FWD): 15.81
- Dividend Yield: 3%
- Next Earnings Date: Jan 17, 2025
Technical Reasons for Upside:
- Breakout Potential: ALLY recently tested resistance around $40, with increasing volume indicating a potential breakout towards higher highs. A move past $42 could accelerate bullish momentum.
- Bullish Divergence: RSI indicates higher lows despite recent price consolidation, signalling underlying strength. MACD is also crossing bullish territory.
- Golden Cross Forming: The 50-day moving average is nearing a crossover above the 200-day MA, a classic long-term buy signal.
Fundamental Reasons for Upside:
- Valuation Discount: Trading 28.9% below fair value (per Simply Wall St.), ALLY offers an attractive entry for long-term investors.
- Earnings Growth: Analysts project a robust EPS growth of 40% for FY 2024 as auto loan performance stabilizes and digital banking services expand.
- Strong Buy Ratings: Recent analyst upgrades (e.g., Citigroup raised its target to $55) reflect confidence in Ally’s recovery and growth strategy.
Potential Paths to Profit:
- Option 1 (Low Risk): Buy shares outright and target $55. Collect a steady 3% dividend while holding.
- Option 2 (Medium Risk): Sell cash-secured puts at a $38 strike to earn premium while positioning for a cheaper entry.
- Option 3 (Higher Risk): Buy long-dated call options (e.g., June 2025, $45 strike) to leverage the expected upside without committing significant capital.
Disclaimer: We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
Disclaimer
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