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Allison Transmission (ALSN) Outpaces Stock Market Gains: What You Should Know
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Allison Transmission (ALSN - Free Report) closed the most recent trading day at $59.55, moving +1.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the automatic transmission maker had lost 0.48% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.7%, while the S&P 500 lost 1.27%.
Allison Transmission will be looking to display strength as it nears its next earnings release. In that report, analysts expect Allison Transmission to post earnings of $1.71 per share. This would mark year-over-year growth of 17.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $757.05 million, up 6.63% from the year-ago period.
ALSN's full-year Zacks Consensus Estimates are calling for earnings of $6.93 per share and revenue of $3.03 billion. These results would represent year-over-year changes of +25.32% and +9.42%, respectively.
Investors might also notice recent changes to analyst estimates for Allison Transmission. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.04% higher. Allison Transmission currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Allison Transmission is holding a Forward P/E ratio of 8.43. This represents a discount compared to its industry's average Forward P/E of 15.05.
Meanwhile, ALSN's PEG ratio is currently 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ALSN in the coming trading sessions, be sure to utilize Zacks.com.
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Allison Transmission (ALSN) Outpaces Stock Market Gains: What You Should Know
Allison Transmission (ALSN - Free Report) closed the most recent trading day at $59.55, moving +1.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Coming into today, shares of the automatic transmission maker had lost 0.48% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.7%, while the S&P 500 lost 1.27%.
Allison Transmission will be looking to display strength as it nears its next earnings release. In that report, analysts expect Allison Transmission to post earnings of $1.71 per share. This would mark year-over-year growth of 17.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $757.05 million, up 6.63% from the year-ago period.
ALSN's full-year Zacks Consensus Estimates are calling for earnings of $6.93 per share and revenue of $3.03 billion. These results would represent year-over-year changes of +25.32% and +9.42%, respectively.
Investors might also notice recent changes to analyst estimates for Allison Transmission. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.04% higher. Allison Transmission currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Allison Transmission is holding a Forward P/E ratio of 8.43. This represents a discount compared to its industry's average Forward P/E of 15.05.
Meanwhile, ALSN's PEG ratio is currently 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Original Equipment industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ALSN in the coming trading sessions, be sure to utilize Zacks.com.