Ally Financial Inc. (ALLY): Billionaire Brian Higgins Is Bullish on This Stock

We just covered Billionaire Brian Higgins’ 10 Stock Picks With Huge Upside Potential and Ally Financial Inc. (NYSE:ALLY) ranks 8th on this list.

Ally Financial Inc. (NYSE:ALLY) is a long-term holding in the 13F portfolio of King Street Capital. The fund first disclosed a stake in the company in the fourth quarter of 2016. This holding comprised 2.5 million shares. The hedge fund added to this stake in the coming months, growing it to more than 6.9 million shares by the first quarter of 2018. Thereafter, it started trimming this holding, reducing it by half in the next quarter and selling it off completely by early 2019. A new position was then opened in the third quarter of 2025. This comprised just over 440,000 shares. Filings for the fourth quarter of 2025 show that the fund owns just under 440,000 shares in the company.

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Ally Financial Inc. (NYSE:ALLY) stock has started turning heads on Wall Street as a coiled spring for earnings growth as interest rate pressures begin to ease and credit metrics stabilize. In its Q1 2026 report, Ally delivered an adjusted EPS of $1.11, representing a 90% year-over-year increase. Hedge funds are rewarding management for their strategy of shedding non-core assets, like the recent sale of their credit card business, to focus on high-return retail auto and corporate finance. Management expects to exit 2026 with a NIM at or above 3.7%, up from 3.52% in Q1. Because Ally is a digital bank with a massive $146 billion deposit base, even a small expansion in margin translates to hundreds of millions in additional profit.

While we acknowledge the risk and potential of ALLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALLY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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