Ally Financial an undervalued stock setting up for a bounce

I don't love banking stocks right now because they have so much bad debt on the books, but Ally Financial looks good for at least a short-to-mid-term play. With a P/E of 7.62 and a valuation rating of 94/100 from S&P Global Market Intelligence, Ally looks very attractively valued. It beat estimates and raised guidance on its last earnings report, its earnings grew 10% last quarter vs. the same quarter the previous year. With a 2% dividend yield, Ally offers decent quarterly cash return as well as good growth potential. Best of all, Ally is sitting on a support and looks ready for a bounce from $30 per share. This is definitely my pick of the day.

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Ally got rejected from resistance today, so it's not a bad time to take the 5% profit. I will be holding, however, because I believe the stock is still undervalued and should have more upside.

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Ally is back in a bounce zone, so it's a decent time to re-enter.