Ally(US:ALLY) ZACKS·2025-10-23 14:41Core Insights - The article emphasizes the importance of the Zacks Rank system, which focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is highlighted as a popular strategy for finding undervalued stocks that have potential for profit [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Company Analysis: Ally Financial (ALLY) - Ally Financial has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential [4] - The stock has a P/E ratio of 9.09, which is lower than the industry average of 9.54 [4] - Over the past year, Ally's Forward P/E has fluctuated between 7.19 and 11.99, with a median of 8.66 [4] - Ally's PEG ratio is 0.25, significantly lower than the industry average of 0.46, indicating strong earnings growth potential [5] - The PEG ratio has ranged from 0.22 to 0.43 over the past year, with a median of 0.28 [5] Company Analysis: Encore Capital Group (ECPG) - Encore Capital Group also holds a Zacks Rank of 2 (Buy) and a Value score of A [6] - The company has a P/B ratio of 1.16, compared to the industry average of 0.80 [6] - ECPG's P/B ratio has varied from 0.78 to 1.58 in the past 52 weeks, with a median of 1.09 [6] Conclusion on Value Stocks - Both Ally Financial and Encore Capital Group are identified as likely undervalued stocks with strong earnings outlooks, making them attractive options for value investors [7]