MIDVALE, Utah, Oct. 13, 2017 /PRNewswire/ -- A favorable
U.S. business climate, including corporate/company earnings,
continued low interest rates, and accelerating growth were,
respectively, the top three factors contributing to strong bullish
market sentiment among independent investors, according to a new
client survey by Ally Invest. Heading into FAANG (Facebook, Amazon,
Apple, Netflix, Google) earnings season, investors also
overwhelmingly anticipate these companies' quarterly earnings to
either meet or exceed street expectations with high expectations of
strong year-over-year earnings for Amazon.
The results of the in-house survey, conducted October 5-8, 2017 by Ally Invest, are based on
responses from 390+ independent investors.
Bull - Bear Sentiment
Nearly 49% of investors say they
have a bullish market outlook and nearly 6% are very bullish, with
fewer than 12% of investors reporting a bearish or very bearish
view. However, investors are keeping a close eye on potential
market concerns, including international unrest (54%), slowing
year-over-year growth (32%) and the potential for higher interest
rates (28%).
Optimistic Outlook for FAANG Earnings
When asked "What
is your outlook for each of the 'FAANG' stocks for the fourth
quarter?," the majority of investors believe these companies will
either meet or exceed street expectations with bullish sentiment
the strongest on Amazon and the weakest on Facebook. Here is how
response for the FAANG stocks compared:
- Facebook (meet street expectations: 42%, exceed street
expectations 23%)
- Amazon (meet street expectations: 25%, exceed street
expectations: 36%)
- Apple (meet street expectations: 33%, exceed street
expectations: 27%)
- Netflix (meet street expectations: 33%, exceed street
expectations: 26%)
- Google (meet street expectations: 36%, exceed street
expectations: 29%)
Investors Watching a Variety of Trade Triggers for FAANG
Stocks
When asked, "Which trade triggers are you watching
most closely for each of the 'FAANG' stocks?," investors offered a
range of responses, though ongoing annual revenue growth was among
the top three triggers cited by all investors surveyed.
- Facebook: Year-over-year revenue growth was the top investor
response (16%), followed by ad revenue (13%) and the number of
active users/subscribers (11%).
- Amazon: Investors likewise pointed to year-over-year revenue
growth as the top trade trigger (24%), followed by year-over-year
EPS growth (11%) and gross margins (8%).
- Apple: A reputation for innovation continues to be Apple's
calling card, with 25% of investors pointing to new product
launch(es) as a top trade trigger, followed by product sales by
category (15%) and year-over-year revenue growth (12%).
- Netflix: The number of active users/subscribers was the top
trade trigger (32%), followed by year-over-year revenue growth
(10%) and year-over-year EPS growth (7%).
- Google: Year-over-year revenue growth was again the top trade
trigger (18%), followed by ad revenue (16%). Year-over-year EPS
growth and new product launches were tied as the third top trade
trigger (7%).
Results of the survey are for informational purposes only and
not intended as investment advice. Investing involves risk. Thus,
before investing you should consider what is suitable given your
particular circumstances or seek professional advice.
About Ally Financial Inc.
Ally Financial Inc. (NYSE:
ALLY) is a leading digital financial services company and a top 25
U.S. financial holding company offering financial products for
consumers, businesses, automotive dealers and corporate clients.
Ally's legacy dates back to 1919, and the company was redesigned in
2009 with a distinctive brand, innovative approach and relentless
focus on its customers. Ally has an award-winning online bank (Ally
Bank Member FDIC, Equal Housing Lender) offering deposits, credit
card and home loan products, one of the largest full service auto
finance operations in the country, a complementary auto-focused
insurance business, a growing wealth management and online
brokerage platform, and a trusted corporate finance business
offering capital for equity sponsors and middle-market
companies.
The company had approximately $164.2
billion in assets as of June 30,
2017. For more information, visit the Ally press room at
http://media.ally.com or follow Ally on Twitter:
@AllyFinancial.
Securities products and services are offered through Ally Invest
Securities LLC, member FINRA and SIPC. Investment advisory services
are offered through Ally Invest Advisors Inc., an SEC registered
investment adviser. Ally Invest Advisors Inc. and Ally Invest
Securities LLC are wholly owned subsidiaries of Ally Invest Group
Inc. Investments are NOT FDIC INSURED, NOT BANK GUARANTEED
and MAY LOSE VALUE.
Media Contacts:
Andrea
Puchalsky at Ally
313-656-3798
Andrea.Puchalsky@ally.com
Kathy Wilson at Tier One
Partners
781-652-0499
kwilson@tieronepr.com
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SOURCE Ally Financial