Allison Transmission (ALSN) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Allison Transmission (ALSN) standing at $55.93, reflecting a +0.47% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.
The automatic transmission maker's stock has climbed by 1.51% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 0.22% and lagging the S&P 500's gain of 2.75%.
The investment community will be paying close attention to the earnings performance of Allison Transmission in its upcoming release. The company is predicted to post an EPS of $1.39, indicating an 8.55% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $751.68 million, indicating a 4.69% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Allison Transmission holds a Zacks Rank of #3 (Hold).
Looking at valuation, Allison Transmission is presently trading at a Forward P/E ratio of 7.94. For comparison, its industry has an average Forward P/E of 11.48, which means Allison Transmission is trading at a discount to the group.
We can additionally observe that ALSN currently boasts a PEG ratio of 1.13. 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 the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.67.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% 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.
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
