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Allison (ALSN) Teams Up With Autotech, Hits Delivery Milestone

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Allison Transmission Holdings ALSN recently pledged a $15 million investment in Autotech Ventures, a venture capital (VC) firm, paving the way for the next frontier of mobility.

Per the joint venture, Autotech will provide Allison with direct exposure to relevant startups, VC expertise and high-tech companies in strategic areas of the transportation industry. The partnership is also in sync with Allison’s mission to advance its propulsion solutions in the dynamic and cut-throat vehicle industry.

Based in Silicon Valley, Autotech invests in and provides consulting services to early-stage transport technology startups with key focus on connectivity, autonomy, sharing, electrification and digitization in the transport tech space. Autotech’s tech scouting, tech absorption and team development capabilities will benefit Allison and elevate its research and business development capabilities. By leveraging Autotech’s solid ground through the investment, ALSN is poised to diversify its portfolio and deliver brand value and efficient, next-generation propulsion solutions to its customers.

In another important development, Allison recently hit a landmark by completing the delivery of its 2 millionth 1000 Series and 2000 Series, remaining focused on its vision to provide reliable, durable transmissions for light and medium-duty commercial vehicles. The milestone unit was delivered to Penske Truck Leasing, a leading global transportation services provider.

Both 1000 and 2000 series are widely popular in communities, from being used in ambulances to school buses to municipal and distribution and delivery trucks that support essential and critical businesses. Allison is confident that the landmark delivery will go a long way in testifying its commitment to high-quality propulsion solutions.

Allison’s shares have lost 9.4% over the past year compared with the industry’s 37.3% decline. The company has an expected earnings growth rate of 26.2% for the current year.

Zacks Investment Research
Zacks Investment Research

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Zacks Rank & Key Picks

Currently, Allison carries a Zacks Rank #4 (Sell).

Better-ranked players in the auto space include Genuine Parts GPC, Fox Factory Holdings FOXF and Ford Motors F, each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Genuine Parts has an expected earnings growth rate of 11% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.

Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 32.4% over a year.

Fox Factory has an expected earnings growth rate of 14% for the current year. The Zacks Consensus Estimate for the current year has been revised around 0.2% upward over the past 60 days.

Fox Factory’s bottom line beat the Zacks Consensus Estimate in all the trailing four quarters. FOXF delivered a trailing four-quarter earnings surprise of roughly 16%, on average. The stock has rallied 22.5% over a year.

Ford has an expected earnings growth rate of 2.2% for the current year. The Zacks Consensus Estimate for the current-year earnings has been revised around 2.7% upward over the past 60 days.

Ford’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. F pulled off a trailing four-quarter earnings surprise of 335.6%, on average. The stock has also rallied 140.6% over a year.


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