Allison Transmission (ALSN) Declines More Than Market: Some Information for Investors
In the latest market close, Allison Transmission (ALSN) reached $55.97, with a -1.89% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.59%.
Shares of the automatic transmission maker witnessed a loss of 3.49% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 4.92% and underperforming the S&P 500's gain of 1.2%.
The upcoming earnings release of Allison Transmission will be of great interest to investors. The company is expected to report EPS of $1.41, down 7.24% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $746.91 million, indicating a 4.03% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Allison Transmission. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Allison Transmission is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Allison Transmission's current valuation metrics, including its Forward P/E ratio of 8.15. For comparison, its industry has an average Forward P/E of 11.03, which means Allison Transmission is trading at a discount to the group.
Meanwhile, ALSN's PEG ratio is currently 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
