Bill Nygren gives away his favourite financial stock

Bill Nygren says there are plenty of cheap stocks in the financial sector.
The Oakmark portfolio manager revealed his favourite stock in this space.
The Financial Select Sector SPDR Fund is down 20% from its YTD high.

There’s plenty of quality names that are now on sale in the “financial” space, says Oakmark Funds’ portfolio manager. XLF, at present, is down 20% from its year-to-date high.

Nygren’s bull case for Ally Financial stock

One name in particular that pops out to Bill Nygren is the Detroit-headquartered bank holding company, Ally Financial Inc (NYSE: ALLY). This morning on CNBC’s “Squawk on the Street”, he said:

Earlier this week, the American business magnate, Warren Buffett also invested in Ally Financial. The stock is down 25% from its year-to-date high.

Why else does he like Ally Financial

On average, Wall Street sees upside to $58 a share in Ally Financial that translates to a 50% upside from here. Quoting other reasons why he likes the NYSE-listed company, Nygren said:

Last month, the U.S. financial services company reported $2.03 of per-share earnings for its fiscal first quarter versus the consensus of $1.93. Its revenue, however, was below Street expectations.