Jul. 20, 2025 10:34 PM ETAlly Financial Inc. (ALLY) StockALLYSeeking Profits4.67K FollowersSummaryAlly Financial's Q2 results showed improved deposit costs and lower credit losses, but its capital position remains weak compared to peers.The company is prioritizing capital build through retained earnings over buybacks, likely delaying shareholder returns until at least 2027.Auto loan credit trends are stabilizing, but reserve coverage remains low, and asset growth will be constrained to protect capital ratios.Despite improved earnings guidance, Ally's valuation is less attractive than peers with stronger capital, so I maintain a Hold rating.David Gyung/iStock via Getty ImagesShares of Ally Financial (NYSE:ALLY) have been a poor performer over the past year, losing 6% of their value as the company has faced higher losses on legacy auto loan exposure, sold off its credit cardThis article was written bySeeking Profits4.67K FollowersOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You