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Surging Earnings Estimates Signal Good News for Allison Transmission (ALSN)

Zacks Equity Research

Allison Transmission Holdings, Inc. ALSN designs, manufactures, and sells commercial and defense fully-automatic transmissions that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on ALSN’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Allison Transmission could be a solid choice for investors.

Current Quarter Estimates for ALSN

In the past 30 days, eight estimates have gone higher for Allison Transmission while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 47 cents a share 30 days ago, to 57 cents today, a move of 21.3%.

Current Year Estimates for ALSN

Meanwhile, Allison Transmission current year figures are also looking quite promising, with eight estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $2.09 per share 30 days ago to $2.43 per share today, an increase of 16.3%.

Allison Transmission Holdings, Inc. Price and Consensus

Allison Transmission Holdings, Inc. Price and Consensus | Allison Transmission Holdings, Inc. Quote

Bottom Line

The stock has also started to move higher lately, adding 17.2% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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