Allison Transmission (ALSN) Rises But Trails Market: What Investors Should Know
Allison Transmission (ALSN) closed the most recent trading day at $75.40, moving +0.09% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 1.14%.
The automatic transmission maker's shares have seen an increase of 22.59% over the last month, surpassing the Auto-Tires-Trucks sector's gain of 11.46% and the S&P 500's gain of 5.2%.
The upcoming earnings release of Allison Transmission will be of great interest to investors. The company is predicted to post an EPS of $1.87, indicating a 1.08% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $759.85 million, indicating a 2.54% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.64 per share and a revenue of $3.1 billion, representing changes of +3.24% and +2.11%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 9.61% higher within the past month. At present, Allison Transmission boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Allison Transmission is presently trading at a Forward P/E ratio of 9.85. This signifies a discount in comparison to the average Forward P/E of 12.58 for its industry.
Meanwhile, ALSN's PEG ratio is currently 1.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.86 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
