Is Allison Transmission Holdings (ALSN) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Allison Transmission Holdings (ALSN). ALSN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.80, while its industry has an average P/E of 20.74. Over the past 52 weeks, ALSN's Forward P/E has been as high as 10.16 and as low as 6.88, with a median of 8.14.
Finally, investors should note that ALSN has a P/CF ratio of 8.16. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 31.60. Within the past 12 months, ALSN's P/CF has been as high as 8.16 and as low as 5.43, with a median of 6.51.
These are just a handful of the figures considered in Allison Transmission Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ALSN is an impressive value stock right now.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
