Where Will Ally Stock Be in 5 Years?

Ally Financial (NYSE: ALLY) was a major beneficiary of the COVID-19 pandemic. As a consumer bank and automotive loan originator, the company saw tailwinds on both sides of its business. People who took out automotive loans paid them back on time due to stimulus checks and less spending on things like travel. Low interest rates and people searching for digital solutions meant more people seeking online banks such as Ally.In 2022, these tailwinds turned sharply into headwinds, causing volatility for Ally's business. Rising interest rates meant it needed to pay more out to depositors in order to retain customers, while repayments on automotive loans got worse. This caused a sharp drop in Ally's earnings per share (EPS) and stock. Even though Ally's stock has recovered from the lows in 2023, it is still off 30% from all-time highs set in 2021.Is the company now on the road to recovery? With interest rates falling again and the normalization of the automotive market, it might just be. Here's where Ally stock could be five years from now.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool