Is ally good buy now

Ally Financial (ALLY) is currently not a strong buy. Here's why:

1. Financial Performance: Ally's recent financials show a P/E ratio of 14.02, a Price to Book Ratio of 0.91, and a P/S ratio of 14.02. These metrics suggest that the stock may be somewhat overvalued compared to its earnings and book value.

ALLY P/E(TTM), Price to Book Ratio

2. Moving Averages: The stock's 5-Day, 10-Day, and 20-Day moving averages are $34.55, $35.03, and $35.04, respectively. These are very close to the current closing price of $34.42, indicating a short-term sideways movement. However, the 30-Day, 50-Day, and 60-Day moving averages are higher at $34.79, $36.94, and $37.52, respectively. This suggests that the stock may have some upward pressure in the short term but is currently trading below its short-term moving averages.

ALLY Trend

3. Earnings Expectations: Ally is expected to report an earnings per share (EPS) of $0.53, with analysts anticipating a drop in the share price if the earnings miss expectations. This suggests that there may be some uncertainty around the stock's future performance.
4. Dividend and Shareholder Returns: Ally has a history of paying dividends, with a recent quarterly dividend of $0.30 per share. The dividend yield is 4.63%, which is reasonable. However, the payout ratio is 32.79%, indicating that the company retains a significant amount of earnings.
5. Market Sentiment: Analysts have a mixed sentiment on Ally, with a consensus rating of "Outperform" but a potential 7.9% upside based on the average one-year price target of $38.78. This suggests that while there is potential for growth, some analysts are cautious about the stock's performance.
6. Recent Performance: Ally's stock price has experienced a 2.28% drop following a quarter where the EPS beat estimates but the share price fell. This recent performance may indicate that the market is becoming more cautious about the stock's future prospects.

In conclusion, while Ally has a reasonable dividend yield and is expected to report earnings, the high P/E ratio, the stock trading below some of its moving averages, and the mixed market sentiment suggest that it may not be a strong buy at the moment. Investors should carefully consider these factors and their investment goals before deciding whether to buy ALLY shares.