Here's Why Allison Transmission (ALSN) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Allison Transmission (ALSN)
Headquartered in Indianapolis, IN, Allison Transmission Holdings, Inc. is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. In fact, the company is the largest producer of fully-automatic transmissions, holding the leading position in several niche markets. The firm also offers electric hybrid and fully electric propulsion systems.
ALSN sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Automotive - Original Equipment industry's P/E of 12.8X, shares of Allison Transmission are trading at a forward P/E of 8.2X. ALSN also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 7.7X, and a Price/Sales ratio of 1.7X.
Many value investors pay close attention to a company's earnings as well. For ALSN, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $7.01 per share for 2023. Per share ALSN boasts an average earnings surprise of 17.2%.
Investors should take the time to consider ALSN for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
