10 Best American Bank Stocks To Buy Now

8. Ally Financial Inc. (NYSE:ALLY)

Number of Hedge Fund Holders: 56

Ally Financial Inc. (NYSE:ALLY) is an American financial services company, offering a wide range of products such as auto financing, banking, and insurance. It owns the Ally Bank, a digital-only bank, that caters to the banking requirements of individuals and businesses. While the bank does not have any physical branches, it boasts a large network of ATMs.

On January 22, Ally Financial Inc. (NYSE:ALLY) declared results for the fourth quarter and full year 2024. Total net revenue for the year was reported at $8.2 billion, with a pre-tax income of $836 million and a net income of $668 million. It delivered an adjusted EPS of $2.35, while the return on common equity stood at 4.8%.

During 2024, it received 14.6 million consumer auto applications, which resulted in consumer originations of $39 billion, showcasing the strength of Ally Financial Inc. (NYSE:ALLY)’s dealer relationships and the scale of its business. Ally Bank had retail deposits of $143.4 billion for the year, with 92% being FDIC-insured. The bank added 230,000 new customers in 2024, taking its total number of depositors to 3.3 million.

Ally Financial Inc. (NYSE:ALLY) also announced that it had reached an agreement with CardWorks, Inc. and its bank subsidiary, Merrick Bank, on the sale of Ally’s credit card business. The decision is part of the company’s overall strategy to prioritize its core business, streamline its structure, and drive improved returns.

Ally’s share price has risen 2% since the earnings call and business update. Wall Street analysts are bullish on the stock, with a consensus Buy rating, and anticipate a further 8% uptick, on average, in its share price. Investor sentiment is improving as well. According to Insider Monkey’s database for Q3 2024, 56 hedge funds had investments in Ally Financial Inc. (NYSE:ALLY), up from 45 at the end of the second quarter. It is one of the best American bank stocks to buy now.