Where Will Ally Stock Be in 3 Years?

Ally Financial (NYSE: ALLY) stock went largely unnoticed by the investing community until Warren Buffett and his team at Berkshire Hathaway bought it sometime in early 2022. Buffett has a knack for choosing incredible stocks, and Ally is now on the savvy investor's radar.

Ally stock is actually down since Buffett bought it, falling 20% since Berkshire likely first took a position. It wasn't a great time for bank stocks as inflation soared and interest rates were rising. But Ally has done well since investor sentiment toward bank stocks started to rebound, and it's up about 70% during the past year. It's still not yet back to where it was when Buffett identified it as a stock to own, leaving plenty of room for investors to still buy in. But should you? Let's see where investors can expect it to be in three years.

There are various features that distinguish banks from each other, even though they often appear very similar. Sometimes it's just who has a branch closest to your house. These days, customers have the luxury of searching online for the best rates. They're not usually looking at the bank's returns on equity, like investors do. But investors should pay attention to what customers are looking at, because that can determine which banks are stepping into opportunities, and which ones are missing them.

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Source Fool.com