Allison Transmission (ALSN) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Allison Transmission (ALSN) reached $58.15, with a -0.43% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.56%.
The automatic transmission maker's stock has climbed by 9.2% in the past month, exceeding the Auto-Tires-Trucks sector's gain of 3.74% and the S&P 500's gain of 5.24%.
Market participants will be closely following the financial results of Allison Transmission in its upcoming release. The company's earnings per share (EPS) are projected to be $1.39, reflecting an 8.55% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $751.68 million, up 4.69% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.90 per share and a revenue of $3.03 billion, signifying shifts of +24.77% and +9.3%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allison Transmission. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Allison Transmission is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Allison Transmission is currently being traded at a Forward P/E ratio of 8.46. This denotes a discount relative to the industry's average Forward P/E of 14.04.
We can additionally observe that ALSN currently boasts a PEG ratio of 1.21. 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. As of the close of trade yesterday, the Automotive - Original Equipment industry held an average PEG ratio of 0.65.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
