We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allison Transmission (ALSN) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Allison Transmission (ALSN - Free Report) closed at $59.85 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the automatic transmission maker had gained 0.22% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.71% and outpacing the S&P 500's gain of 0.19% in that time.
Allison Transmission will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, up 17.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $757.05 million, up 6.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.93 per share and revenue of $3.03 billion, which would represent changes of +25.32% and +9.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Allison Transmission is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Allison Transmission is currently trading at a Forward P/E ratio of 8.48. This valuation marks a discount compared to its industry's average Forward P/E of 14.67.
Meanwhile, ALSN's PEG ratio is currently 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Allison Transmission (ALSN) Outpaces Stock Market Gains: What You Should Know
Allison Transmission (ALSN - Free Report) closed at $59.85 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the automatic transmission maker had gained 0.22% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.71% and outpacing the S&P 500's gain of 0.19% in that time.
Allison Transmission will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.71, up 17.93% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $757.05 million, up 6.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.93 per share and revenue of $3.03 billion, which would represent changes of +25.32% and +9.42%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Allison Transmission is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Allison Transmission is currently trading at a Forward P/E ratio of 8.48. This valuation marks a discount compared to its industry's average Forward P/E of 14.67.
Meanwhile, ALSN's PEG ratio is currently 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.