Why Ally Financial Is a Buy Even If the Markets Sell Off
As global markets grow increasingly nervous over inflation and potential monetary policy changes, investors could benefit from defensive positions in certain financial stocks. Except that recently, some in that sector have behaved more like growth companies, namely the regional banks. At Monday morning's prices, the SPDR Regional Banking ETF is already up 35% this year, compared to the S&P 500's gains of almost 12%.
Ally Financial (NYSE: ALLY) is one of the top performers, rising 50% itself. The digital bank has the largest auto loan portfolio in America, and is rapidly expanding into other areas of lending. It has grown revenue and earnings materially, and thanks to some favorable economic conditions, there's a good chance it's not done.
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Source Fool.com
