Allison Transmission (ALSN) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Allison Transmission (ALSN) standing at $60.26, reflecting a +1.72% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
The automatic transmission maker's shares have seen an increase of 1.44% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 12.12% and falling behind the S&P 500's gain of 3.05%.
The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. The company is scheduled to release its earnings on February 13, 2024. It is anticipated that the company will report an EPS of $1.42, marking a 6.58% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $753.73 million, reflecting a 4.98% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Allison Transmission. These recent revisions tend to reflect the evolving nature of short-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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. At present, Allison Transmission boasts a Zacks Rank of #2 (Buy).
Investors should also note Allison Transmission's current valuation metrics, including its Forward P/E ratio of 8.43. This expresses a discount compared to the average Forward P/E of 11.51 of its industry.
We can additionally observe that ALSN currently boasts a PEG ratio of 1.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.69.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
