Recently, one of the most frequently looked-up stocks on Zacks.com was Ally Financial (ALLY).
In contrast to the +4.6% increase in the Zacks S&P 500 composite during the last month, shares of this bank and auto financing firm have returned -3.5%.
Ally Financial is a part of the Zacks Financial - Consumer Loans industry, which has increased 5.4% over this time.
A company's stock may trend and see an abrupt price movement in response to media reports or speculations of a material shift in the company's business prospects.
At Zacks, we give analysing the change in a company's earnings outlook priority above anything else.
This is because, in our opinion, the fair value of its stock is decided by the value of its projected future earnings stream.
Our study mostly relies on how sell-side analysts that follow the stock are updating their profit predictions to reflect the most recent commercial developments.
The fair value of a firm's shares increases together with rising profits expectations for that company.