In 2025, Redemption Holding Co. finalized a historic Utah acquisition, taking control of Holladay Bank & Trust and becoming the first Black-led investment group to own a bank in a Western U.S. state. While the newly formed financial institution stands out because of its ownership, it also holds the distinction of being the first African-American-led bank in American history that it not physically located within an economically vulnerable community. Redemption Bank also stands only in the Rockies and helps f ...

Group 1: Ally Financial - Ally Financial is the largest all-digital bank in the U.S. and specializes in auto loans, being the largest auto lender not owned by an automaker, with $144 billion in retail deposits [2] - The company has strategically exited non-core businesses to focus on auto loans, insurance, and consumer banking [3] - In 2025, Ally achieved record results, with $43.7 billion in originated loans and an all-time high for written insurance premiums, maintaining a 3.43% net interest margin [4] - Ally trades at eight times forward earnings and is one of the few major banks trading below book value, presenting a potential opportunity for investors [5] Group 2: Capital One - Capital One has seen a decline of about 12% in early 2026, primarily due to investor concerns over potential credit card interest rate caps and skepticism regarding its acquisition of fintech company Brex for $5.15 billion [6][7] - Despite these concerns, Capital One reported strong earnings with increases in credit card, auto, and commercial loans, and has a net interest margin of 8.26%, significantly higher than the average big bank [8] - The bank's valuation is approximately 10.6 times forward earnings, and the potential synergies from the Discover merger have yet to be fully realized, indicating a buying opportunity [8]

Core Viewpoint - Ally Financial Inc. will present at the BofA Securities Financial Services Conference on February 10, 2026, highlighting its commitment to financial services and investor relations [1]. Group 1: Company Overview - Ally Financial Inc. is a financial services company with the largest all-digital bank in the nation and a leading auto financing business [2]. - The company aims to "Do It Right" and serves customers through deposits, securities brokerage, investment advisory services, auto financing, and insurance offerings [2]. - Ally also has a corporate finance business that provides capital for equity sponsors and middle-market companies [2].

Core Insights - Ally Financial Inc. has appointed Rodney Hood as a senior policy advisor to the CEO, aiming to enhance its influence in policy discussions [1][3] - Hood brings nearly three decades of experience in banking, regulation, risk management, and financial inclusion, having held significant roles in federal regulatory agencies [2][4] Group 1: Appointment and Role - Rodney Hood will provide counsel on political affairs and D.C. engagement, strengthening Ally's voice in critical policy discussions [1][3] - His role includes advising on key political affairs, identifying stakeholders, and advocating for policies that support financial well-being [3] Group 2: Experience and Background - Hood has held multiple presidential appointments, including Acting Comptroller of the Currency and Chairman of the National Credit Union Administration, making history as the first to lead both agencies [2] - His previous leadership roles include positions at JPMorgan Chase, Wells Fargo, NationsBank, GE Capital, and the U.S. Department of Agriculture [2] Group 3: Company Overview - Ally Financial is a financial services company with the largest all-digital bank in the U.S. and a leading auto financing business [5] - The company offers a range of services including deposits, securities brokerage, investment advisory, auto financing, and insurance [5]

Core Insights - An 18-month CD is highlighted as a competitive option for earning returns on savings without long-term commitment, offering higher interest rates than typical savings accounts while providing more flexibility than longer-term CDs [1] Best 18-Month CDs - Ally Bank offers the top-rated 18-month CD with a 3.6% APY and no minimum opening deposit requirement, with daily compounding interest [3] - Synchrony Bank provides a competitive 3.8% APY with no minimum opening deposit, but has a penalty of 180 days' simple interest for early withdrawals [4] - Marcus by Goldman Sachs features a 4% APY with a minimum deposit of $500, and early withdrawal incurs a penalty of 180 days' interest [5] - Limelight Bank's CD offers a 3.85% APY with a minimum deposit of $1,000, with daily compounding and quarterly credited interest [10] - Live Oak Bank has a 3.7% APY but requires the highest minimum deposit of $2,500, with a 90-day simple interest penalty for early withdrawals [11] - America First Credit Union provides a 3.95% APY with a $500 minimum deposit, and dividends are compounded and credited monthly [12] - Bank5Connect offers a 3.5% APY with a $500 minimum deposit, with a six-month interest penalty for early withdrawals [13] - Bask Bank features a 3.75% APY with a $1,000 minimum deposit, and early withdrawal incurs a penalty of 180 days' interest [15] - TAB Bank has a 3.87% APY with a $1,000 minimum deposit and daily compounding interest [20] - Bread Savings offers a 3.75% APY with a higher minimum deposit of $1,500, with daily compounding and monthly credited interest [22] Methodology for Best 18-Month CDs - The evaluation of the best 18-month CDs was based on over 300 data points, focusing on metrics such as annual percentage yield (APY), minimum opening deposit, and compounding frequency [24][25] - Accounts with higher APYs received more points, while those with lower or no minimum deposit requirements ranked more favorably [26]

Core Viewpoint - Ally Financial Inc. is demonstrating strong performance in the financial services sector, highlighted by strategic leadership moves and positive financial results, despite broader industry challenges [1][3]. Financial Performance - Ally Financial reported impressive fourth-quarter earnings for 2025, with an adjusted EPS of $1.09, surpassing the Zacks Consensus Estimate of $1.01, representing a 39.7% increase from the previous year [4]. - The company's GAAP net income rose to $300 million, a significant improvement from $81 million in the prior-year quarter, driven by increased net finance revenues and reduced expenses [4]. - Ally reported $2.12 billion in revenue for the quarter, up from $2.03 billion the previous year, despite a slight revenue shortfall [5]. Strategic Moves - CEO Michael George Rhodes made a notable insider purchase of 23,800 shares at $41.68 each, increasing his total holdings to 49,434 shares, which has boosted investor confidence [2][7]. - Ally Financial announced a $2 billion share buyback program, contributing to positive investor sentiment [3][7]. Financial Health - The company maintains a net interest margin of 3.51% and has shown growth in loan and deposit balances, indicating effective cost management and strong core financial metrics [5]. - Ally's financial ratios include a P/E ratio of approximately 15 and a price-to-sales ratio of about 1.04, reflecting favorable market valuation of its earnings and sales [6]. - The debt-to-equity ratio of 1.40 indicates a balanced approach to financing its assets [6].

Core Insights - Ally Financial's fourth-quarter 2025 adjusted earnings of $1.09 per share exceeded the Zacks Consensus Estimate of $1.01, marking a 39.7% increase from the previous year [1][8] - The company's net income attributable to common shareholders on a GAAP basis was $300 million, significantly up from $81 million in the prior-year quarter [2] - Total quarterly GAAP net revenues were $2.12 billion, a 4.8% increase year-over-year, although it slightly missed the Zacks Consensus Estimate of $2.13 billion [3] Financial Performance - Adjusted total revenues for the quarter were $2.17 billion, reflecting a 3.7% increase from the prior-year quarter [3] - Quarterly net financing revenues grew by 5.9% year-over-year to $1.60 billion, primarily due to lower interest expenses [4] - Total non-interest expenses decreased by 8.1% year-over-year to $1.25 billion, contributing to improved profitability [4][5] Loan and Deposit Growth - As of December 31, 2025, total net finance receivables and loans reached $134 billion, up 2.2% from the previous quarter [6] - Deposits also increased by 2.2% sequentially to $151.6 billion [6] Credit Quality - Non-performing loans decreased to $1.37 billion, down 8.1% year-over-year [7] - Net charge-offs were recorded at $452 million, a decline of 16.8% from the prior-year quarter [7] Capital Ratios - The total capital ratio improved to 13.6% from 13.2% in the prior-year period [9] - The tier 1 capital ratio increased to 11.7% from 11.3% as of December 31, 2024 [9] Strategic Outlook - The company's restructuring initiatives and balance sheet repositioning are expected to strengthen financials, although weak credit quality remains a near-term challenge [10]

Core Viewpoint - Zacks Premium offers tools and resources to help investors make informed stock market decisions and invest with confidence [1] Group 1: Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking value, growth, and momentum [6] Group 2: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 (Hold) stocks should also have A or B Scores for potential upside [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Group 3: Company Spotlight - Ally Financial - Ally Financial Inc., founded in 1919 and based in Detroit, MI, is a diversified financial services company offering various products to automotive dealers and customers [11] - Currently rated 3 (Hold) by Zacks, Ally has a VGM Score of B and a Value Style Score of A, supported by a forward P/E ratio of 7.95 [12] - Recent upward revisions in earnings estimates for fiscal 2026 have increased the Zacks Consensus Estimate by $0.03 to $5.33 per share, with an average earnings surprise of +21.5% [12]

Core Insights - The company reported a Q4 tangible book value per share of $42.10, an increase from $40.95 in the previous quarter, indicating a positive trend in financial performance [1] - CEO Michael Rhodes highlighted that the performance in 2025 represents a significant advancement, supported by disciplined execution and strategic choices [1] - The company enters 2026 with a stronger foundation and momentum for continued progress, suggesting optimism for future growth [1] Financial Performance - Dealer Financial Services benefited from scale and strong dealer relationships, achieving a record consumer application volume of 15.5 million [1] - The company delivered $43.7 billion in originations with attractive risk-adjusted returns, reflecting effective underwriting practices [1] - The Insurance segment achieved a record $1.5 billion in written premiums, showcasing the company's ability to expand relationships and leverage synergies with Auto Finance [1]

Shares of Ally Financial Inc. ( ALLY ) have been a solid performer over the past year, gaining about 11%. That said, shares have pulled back about 10% from their highs, and a Q4 earnings beat on Wednesday morning did little to lift shares. While credit qualityOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an art ...