Ally Financial Is A Stealth Growth Stock Trading At Major Discount

About: Ally Financial Inc. (ALLY), Includes: GS
by: Tim Travis
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Tim Travis
Long only, Deep Value, registered investment advisor, portfolio strategy

TTM EPS of $3.70.  Consensus for 2020 and 2021 are $4.20 and $4.78, respectively.

ALLY earns a higher ROTCE than many of its banking peers, yet trades at a material discount to its tangible book value per share.

ALLY has a clear ability to grow its earnings via funding cost reductions from expensive legacy debt, and accretive stock buybacks.

Over the last several years, there have been a preponderance of articles proclaiming auto loans to be a prime candidate as the next Big Short. Car prices have risen significantly due to the higher percentage