Allison Transmission (ALSN) Rises As Market Takes a Dip: Key Facts
Allison Transmission (ALSN) closed the latest trading day at $57.64, indicating a +0.3% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.07%.
The automatic transmission maker's shares have seen an increase of 0.86% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 1.59% and the S&P 500's gain of 3.98%.
Investors will be eagerly watching for the performance of Allison Transmission in its upcoming earnings disclosure. On that day, Allison Transmission is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 7.24%. At the same time, our most recent consensus estimate is projecting a revenue of $746.91 million, reflecting a 4.03% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allison Transmission. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% downward. Currently, Allison Transmission is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Allison Transmission is currently exchanging hands at a Forward P/E ratio of 8.21. This denotes a discount relative to the industry's average Forward P/E of 11.56.
One should further note that ALSN currently holds a PEG ratio of 1.17. 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 average PEG ratio for the Automotive - Original Equipment industry stood at 0.68 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 31% 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.
To follow ALSN in the coming trading sessions, be sure to utilize Zacks.com.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
