Investors who are looking for good, cheap stocks to buy right now might want to consider the banking industry, which was badly beaten down in 2020 by the pandemic-related recession, credit default fears, and rock-bottom benchmark interest rates, among other issues. Analysts are more bullish about bank stocks for 2021, and among the good values to be found in the sector is Ally Financial (NYSE: ALLY).
Ally actually outperformed the market in 2020, but there are a few reasons to believe that the stock could continue to generate even better returns for investors in 2021 and beyond.
Ally Financial is an online bank with about $174 billion in assets. In a past life, it was known as General Motors Acceptance Corp., or GMAC, an auto finance company established by General Motors. So its roots are in the car loan business, and that remains by far its largest segment today, but the financial institution does offer mortgages, insurance, retail banking, and other services.