Ally Financial Stock Forward View - Double Exponential Smoothing

ALLY Stock  USD 42.28  0.68  1.58%   
Ally Stock outlook is based on your current time horizon.
At this time, the relative strength indicator of Ally Financial's share price is approaching 47. This suggests that the stock is in nutural position, most likellhy at or near its support level. The main point of RSI analysis is to track how fast people are buying or selling Ally Financial, making its price go up or down.

Momentum 47

 Impartial

 
Oversold
 
Overbought
The successful prediction of Ally Financial's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with Ally Financial, which may create opportunities for some arbitrage if properly timed. Below are the key fundamental drivers impacting Ally Financial's stock price prediction:
Quarterly Earnings Growth
2.654
EPS Estimate Next Quarter
1.0379
EPS Estimate Current Year
5.2881
EPS Estimate Next Year
6.3268
Wall Street Target Price
53
Using Ally Financial hype-based prediction, you can estimate the value of Ally Financial from the perspective of Ally Financial response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards Ally Financial using Ally Financial's stock options and short interest. It helps to benchmark the overall future attitude of investors towards Ally using crowd psychology based on the activity and movement of Ally Financial's stock price.

Ally Financial Short Interest

An investor who is long Ally Financial may also wish to track short interest. As short interest increases, investors should be becoming more worried about Ally Financial and may potentially protect profits, hedge Ally Financial with its derivative instruments, or be ready for some potential downside.
200 Day MA
39.4351
Short Percent
0.0308
Short Ratio
3.72
Shares Short Prior Month
10.8 M
50 Day MA
43.2898

Ally Relative Strength Index

The Double Exponential Smoothing forecasted value of Ally Financial on the next trading day is expected to be 42.28 with a mean absolute deviation of 0.58 and the sum of the absolute errors of 34.19.

Ally Financial Hype to Price Pattern

Investor biases related to Ally Financial's public news can be used to forecast risks associated with an investment in Ally. The trend in average sentiment can be used to explain how an investor holding Ally can time the market purely based on public headlines and social activities around Ally Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of Ally Financial's market sentiment to its price can help taders to make decisions based on the overall investors consensus about Ally Financial.

Ally Financial Implied Volatility

    
  0.5  
Ally Financial's implied volatility exposes the market's sentiment of Ally Financial stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ally Financial's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ally Financial stock will not fluctuate a lot when Ally Financial's options are near their expiration.
The Double Exponential Smoothing forecasted value of Ally Financial on the next trading day is expected to be 42.28 with a mean absolute deviation of 0.58 and the sum of the absolute errors of 34.19.

Ally Financial after-hype prediction price

    
  USD 42.96  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Check out Historical Fundamental Analysis of Ally Financial to cross-verify your projections.
For more information on how to buy Ally Stock please use our How to Invest in Ally Financial guide.

Prediction based on Rule 16 of the current Ally contract

Based on the Rule 16, the options market is currently suggesting that Ally Financial will have an average daily up or down price movement of about 0.0313% per day over the life of the 2026-03-20 option contract. With Ally Financial trading at USD 42.28, that is roughly USD 0.0132 . If you think that the market is fully incorporating Ally Financial's daily price movement you should consider acquiring Ally Financial options at the current volatility level of 0.5%. But if you have an opposite viewpoint you should avoid it and even consider selling them.

Open Interest Against 2026-03-20 Ally Option Contracts

Although open interest is a measure utilized in the options markets, it could be used to forecast Ally Financial's spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest in Ally Financial's options reflects these daily shifts, investors could use the patterns of these changes to develop long and short-term trading strategies for Ally Financial stock based on available contracts left at the end of a trading day.
Please note that to derive more accurate forecasting about market movement from the current Ally Financial's open interest, investors have to compare it to Ally Financial's spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of Ally Financial is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in Ally. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.

Ally Financial Additional Predictive Modules

Most predictive techniques to examine Ally price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Ally using various technical indicators. When you analyze Ally charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Double exponential smoothing - also known as Holt exponential smoothing is a refinement of the popular simple exponential smoothing model with an additional trending component. Double exponential smoothing model for Ally Financial works best with periods where there are trends or seasonality.

Ally Financial Double Exponential Smoothing Price Forecast For the 31st of January

Given 90 days horizon, the Double Exponential Smoothing forecasted value of Ally Financial on the next trading day is expected to be 42.28 with a mean absolute deviation of 0.58, mean absolute percentage error of 0.54, and the sum of the absolute errors of 34.19.
Please note that although there have been many attempts to predict Ally Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Ally Financial's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Ally Financial Stock Forecast Pattern

Backtest Ally Financial  Ally Financial Price Prediction  Buy or Sell Advice  

Ally Financial Forecasted Value

In the context of forecasting Ally Financial's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Ally Financial's downside and upside margins for the forecasting period are 40.57 and 43.99, respectively. We have considered Ally Financial's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
42.28
42.28
Expected Value
43.99
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Double Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Ally Financial stock data series using in forecasting. Note that when a statistical model is used to represent Ally Financial stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information CriteriaHuge
BiasArithmetic mean of the errors 0.1008
MADMean absolute deviation0.5795
MAPEMean absolute percentage error0.0137
SAESum of the absolute errors34.1916
When Ally Financial prices exhibit either an increasing or decreasing trend over time, simple exponential smoothing forecasts tend to lag behind observations. Double exponential smoothing is designed to address this type of data series by taking into account any Ally Financial trend in the prices. So in double exponential smoothing past observations are given exponentially smaller weights as the observations get older. In other words, recent Ally Financial observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Ally Financial

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Ally Financial. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
41.2642.9644.66
Details
Intrinsic
Valuation
LowRealHigh
40.9442.6444.34
Details
Bollinger
Band Projection (param)
LowMiddleHigh
40.7744.2147.66
Details
20 Analysts
Consensus
LowTargetHigh
48.2353.0058.83
Details

Ally Financial After-Hype Price Density Analysis

As far as predicting the price of Ally Financial at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Ally Financial or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Ally Financial, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Ally Financial Estimiated After-Hype Price Volatility

In the context of predicting Ally Financial's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Ally Financial's historical news coverage. Ally Financial's after-hype downside and upside margins for the prediction period are 41.26 and 44.66, respectively. We have considered Ally Financial's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
42.28
42.96
After-hype Price
44.66
Upside
Ally Financial is very steady at this time. Analysis and calculation of next after-hype price of Ally Financial is based on 3 months time horizon.

Ally Financial Stock Price Outlook Analysis

Have you ever been surprised when a price of a Company such as Ally Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ally Financial backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Ally Financial, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.13 
1.71
  0.25 
  0.08 
8 Events / Month
6 Events / Month
In about 8 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
42.28
42.96
0.00 
88.14  
Notes

Ally Financial Hype Timeline

Ally Financial is presently traded for 42.28. The entity has historical hype elasticity of 0.25, and average elasticity to hype of competition of -0.08. Ally is expected not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is about 88.14%. The immediate return on the next news is expected to be very small, whereas the daily expected return is presently at 0.13%. %. The volatility of related hype on Ally Financial is about 282.64%, with the expected price after the next announcement by competition of 42.20. About 84.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.01. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ally Financial has Price/Earnings To Growth (PEG) ratio of 0.29. The entity last dividend was issued on the 2nd of February 2026. The firm had 310:1 split on the 10th of April 2014. Given the investment horizon of 90 days the next expected press release will be in about 8 days.
Check out Historical Fundamental Analysis of Ally Financial to cross-verify your projections.
For more information on how to buy Ally Stock please use our How to Invest in Ally Financial guide.

Ally Financial Related Hype Analysis

Having access to credible news sources related to Ally Financial's direct competition is more important than ever and may enhance your ability to predict Ally Financial's future price movements. Getting to know how Ally Financial's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Ally Financial may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
MIUFFMitsubishi HC Capital 0.00 0 per month 0.00  0.00  0.00  0.00  0.00 
SLMSLM Corp 0.04 8 per month 3.30 (0.02) 3.45 (3.17) 20.19 
NAVINavient Corp(0.48)9 per month 0.00 (0.12) 3.14 (4.85) 24.69 
CACCCredit Acceptance(3.78)7 per month 0.00 (0.08) 3.16 (5.96) 12.77 
FCFSFirstCash 0.20 10 per month 1.67  0.06  2.56 (2.65) 12.46 
SYFSynchrony Financial(0.64)10 per month 0.00 (0.03) 2.67 (3.58) 12.73 
SEZLSezzle Inc 0.18 7 per month 0.00 (0.03) 6.39 (6.55) 20.23 
OMFOneMain Holdings(0.05)14 per month 1.63  0.11  3.48 (2.89) 12.22 
JSMNavient SR 0.13 7 per month 0.70 (0.05) 1.07 (1.31) 3.31 
ATLCAtlanticus Holdings(1.65)10 per month 0.00 (0.1) 4.64 (5.57) 14.61 

Other Forecasting Options for Ally Financial

For every potential investor in Ally, whether a beginner or expert, Ally Financial's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Ally Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Ally. Basic forecasting techniques help filter out the noise by identifying Ally Financial's price trends.

Ally Financial Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Ally Financial stock to make a market-neutral strategy. Peer analysis of Ally Financial could also be used in its relative valuation, which is a method of valuing Ally Financial by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Ally Financial Market Strength Events

Market strength indicators help investors to evaluate how Ally Financial stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Ally Financial shares will generate the highest return on investment. By undertsting and applying Ally Financial stock market strength indicators, traders can identify Ally Financial entry and exit signals to maximize returns.

Ally Financial Risk Indicators

The analysis of Ally Financial's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Ally Financial's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting ally stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Story Coverage note for Ally Financial

The number of cover stories for Ally Financial depends on current market conditions and Ally Financial's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Ally Financial is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Ally Financial's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Ally Financial Short Properties

Ally Financial's future price predictability will typically decrease when Ally Financial's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Ally Financial often depends not only on the future outlook of the potential Ally Financial's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Ally Financial's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding314.3 M
Cash And Short Term Investments10 B

Additional Tools for Ally Stock Analysis

When running Ally Financial's price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.