Allison Transmission (ALSN) Ascends But Remains Behind Market: Some Facts to Note
The latest trading session saw Allison Transmission (ALSN) ending at $58.39, denoting a +0.22% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.29% for the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
Coming into today, shares of the automatic transmission maker had lost 0.26% in the past month. In that same time, the Auto-Tires-Trucks sector lost 7%, while the S&P 500 gained 2.08%.
The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. In that report, analysts expect Allison Transmission to post earnings of $1.41 per share. This would mark a year-over-year decline of 7.24%. In the meantime, our current consensus estimate forecasts the revenue to be $746.91 million, indicating a 4.03% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Allison Transmission. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.17% decrease. Allison Transmission presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Allison Transmission is presently being traded at a Forward P/E ratio of 8.32. This signifies a discount in comparison to the average Forward P/E of 11.2 for its industry.
It's also important to note that ALSN currently trades at a PEG ratio of 1.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.67 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
