Ally Financial (ALLY) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates Ally Financial (ALLY) will report a year-over-year increase in earnings driven by higher revenues when it releases its results for the quarter ended December 2025 [1] Earnings Expectations - The earnings report is expected on January 21, and if the results exceed expectations, the stock may rise; conversely, missing estimates could lead to a decline [2] - The consensus estimate for quarterly earnings is $1.02 per share, reflecting a year-over-year increase of +30.8%, with revenues projected at $2.13 billion, up 5% from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.42% higher in the last 30 days, indicating a collective reassessment by analysts [4] - The Most Accurate Estimate for Ally Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.93%, suggesting a bearish outlook from analysts [12] Earnings Surprise Prediction - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [8][10] - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced a positive surprise nearly 70% of the time [10] Historical Performance - In the last reported quarter, Ally Financial was expected to post earnings of $0.99 per share but delivered $1.15, resulting in a surprise of +16.16% [13] - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14] Conclusion - Ally Financial does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17]