Ally Financial is set to report its third-quarter earnings on Friday, and investors are closely watching for updates on the company’s growing credit challenges. With delinquencies and net charge-offs exceeding expectations, particularly in the retail auto lending segment, the earnings report could provide crucial insights into the company’s financial performance during a period of economic uncertainty.
Ally Financial shares tumbled on Tuesday after the company’s CFO revealed deepening credit challenges among borrowers, citing rising inflation and living costs. Delinquencies in the retail auto segment jumped in July and August, exceeding initial forecasts. While Ally will prioritize capital and expense management, it has not yet revised its guidance.
In a recent episode of CNBC’s ‘Mad Money Lightning Round,’ Jim Cramer shared his thoughts on several stocks, including Ally Financial, Snowflake, Royalty Pharma, and Core Scientific. Cramer recommended buying Ally Financial but was hesitant on Snowflake due to recent downgrades. He expressed disappointment with Royalty Pharma’s performance and labeled Core Scientific as overvalued.
