What Makes Ally Financial (ALLY) an Investment Bet? - InvestingChannel

What Makes Ally Financial (ALLY) an Investment Bet?

Delaware Funds by Macquarie, an investment management company, released its “Delaware Ivy Core Equity Fund” Q3 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500® Index rose 5.9% in the third quarter, indicating continuing gains in the US large-cap equity market. Delaware Ivy Core Equity Fund Class I shares outperformed the Fund’s benchmark, the S&P 500 Index in the third quarter. Stock selection drove all of the relative outperformance compared with the Fund’s benchmark, while sector allocation was neutral to relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Delaware Ivy Core Equity Fund highlighted stocks like Ally Financial Inc. (NYSE:ALLY), in the third quarter 2024 investor letter. Ally Financial Inc. (NYSE:ALLY) is a digital financial-services company that offers various digital financial products and services. The one-month return of Ally Financial Inc. (NYSE:ALLY) was -9.93%, and its shares gained 3.12% of their value over the last 52 weeks. On December 26, 2024, Ally Financial Inc. (NYSE:ALLY) stock closed at $36.01 per share with a market capitalization of $10.97 billion.

Delaware Ivy Core Equity Fund stated the following regarding Ally Financial Inc. (NYSE:ALLY) in its Q3 2024 investor letter:

“Ally Financial Inc. (NYSE:ALLY) is primarily an auto lender with solid longer-term returns. As a company dependent on funding its balance sheet (loans) through higher-cost consumer deposits, it will likely be a beneficiary of lower short-term interest rates. Ally has seen consumer delinquency rates and bad debt reserves within its auto lending portfolio increase, causing weakness in earnings and the share price, leading to an opportunity to purchase the shares amid considerable dispute.”

An executive at a desk, surrounded by financial documents and a laptop.

Ally Financial Inc. (NYSE:ALLY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Ally Financial Inc. (NYSE:ALLY) at the end of the third quarter which was 45 in the previous quarter. While we acknowledge the potential of Ally Financial Inc. (NYSE:ALLY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Ally Financial Inc. (NYSE:ALLY) and shared the list of best digital currency and payments stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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