Allison Transmission (ALSN) Laps the Stock Market: Here's Why
Allison Transmission (ALSN) ended the recent trading session at $61.45, demonstrating a +1.5% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.25% gain on the day. On the other hand, the Dow registered a gain of 0.97%, and the technology-centric Nasdaq increased by 1.3%.
Shares of the automatic transmission maker witnessed a gain of 8.55% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 11.14% and the S&P 500's gain of 1.58%.
Investors will be eagerly watching for the performance of Allison Transmission in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2024. In that report, analysts expect Allison Transmission to post earnings of $1.42 per share. This would mark a year-over-year decline of 6.58%. Simultaneously, our latest consensus estimate expects the revenue to be $753.73 million, showing a 4.98% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Allison Transmission. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. As of now, Allison Transmission holds a Zacks Rank of #2 (Buy).
Investors should also note Allison Transmission's current valuation metrics, including its Forward P/E ratio of 8.62. This signifies a discount in comparison to the average Forward P/E of 11.47 for its industry.
One should further note that ALSN currently holds a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 36% of over 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.
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
