Ally Financial, a leading digital bank, has demonstrated strong performance with 17 consecutive years of customer growth and 3.5 million deposit customers. The company's adjusted EPS jumped 62% in 2025 driven by higher yields on auto loans and expanded net interest margins. Trading below book value with analyst forecasts predicting 23.5% annual earnings growth through 2028, Ally presents an undervalued opportunity despite risks from automotive sector exposure.

The article recommends two financial stocks from Berkshire Hathaway's portfolio as strong buys in February: Ally Financial and Jefferies Financial Group. Ally has streamlined its business by exiting low-growth segments, improving credit quality and margins ahead of expected rate cuts. Jefferies, a pure-play investment bank, has recovered from a 19% stock decline caused by First Brands bankruptcy exposure and stands to benefit from a strong M&A market in 2026.

Nu Holdings (NU) rose 2.23% to $16.97 on Jan. 20, 2026, driven by optimism about its growth prospects and expansion plans in Latin America. The stock benefited from heightened sector interest following news that PicPay, another Brazilian digital bank, planned to IPO in the U.S. Trading volume surged 102% above average. While institutional investors like Triasima Portfolio Management reduced stakes, others like Dynasty Wealth Management increased positions. Nu Holdings continues expanding across Brazil, Mexico, Colombia, and the Cayman Islands, with Q4 earnings due Feb. 25.

Ally Financial's board of directors declared a quarterly cash dividend of $0.30 per share on common stock, payable February 17, 2026. The company also declared quarterly dividend payments on Series B and Series C preferred stock of $11.75 per share each, payable February 15, 2026.

Following Warren Buffett's retirement as CEO of Berkshire Hathaway, the article highlights three stocks from the company's portfolio as strong investment opportunities for 2026: Ally Financial, expected to benefit from normalizing auto loan conditions; Chevron, positioned for potential gains from cost-cutting and AI data center initiatives despite current energy sector headwinds; and Kraft Heinz, which could unlock value through a planned split into two companies.

Matt Frankel discusses five of his favorite Buffett stocks that are surprisingly affordable, even in a high-value stock market environment.

SoFi Technologies is emerging as a leading digital bank in the United States, offering competitive interest rates and comprehensive personal finance services. The company has rapidly grown its customer base and deposits, becoming profitable and positioning itself as a potential industry disruptor.

Berkshire Hathaway has added homebuilders and financial sector stocks to its portfolio, with potential opportunities in Lennar, D.R. Horton, and Ally Financial amid potential interest rate changes.

SoFi Technologies, a young financial services company, appears expensive by traditional valuation metrics but demonstrates impressive growth in its banking and lending segments, with potential to become a top-10 financial services company.

Ally Financial reported strong Q2 2025 earnings, with adjusted EPS of $0.99 beating estimates by 22%. The company sold its credit card business, refocused on core segments like auto loans and digital banking, and saw improved financial performance with 70% year-over-year net income growth.

Ally Financial announced quarterly cash dividends of $0.30 per common share and dividend payments for Series B and Series C preferred stock, all payable on August 15, 2025, to shareholders of record by August 1, 2025.

Ally Financial, a Warren Buffett stock, may see significant gains in the coming years as its core automotive lending business recovers, deposit costs decrease, and loan performance improves, leading to an expansion in net interest margin and potential for $2 billion in annual net income.