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Allison Transmission (ALSN) Increases Yet Falls Behind Market: What Investors Need to Know
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Allison Transmission (ALSN - Free Report) closed at $59.30 in the latest trading session, marking a +0.9% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
Coming into today, shares of the automatic transmission maker had gained 0.55% in the past month. In that same time, the Auto-Tires-Trucks sector lost 1.77%, while the S&P 500 lost 5.17%.
The upcoming earnings release of Allison Transmission will be of great interest to investors. The company's earnings report is expected on October 25, 2023. The company is expected to report EPS of $1.70, up 17.24% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $753.31 million, indicating a 6.1% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.99 per share and a revenue of $3.03 billion, signifying shifts of +26.4% and +9.31%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.88% higher. Currently, Allison Transmission is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Allison Transmission currently has a Forward P/E ratio of 8.4. This signifies a discount in comparison to the average Forward P/E of 13.09 for its industry.
Investors should also note that ALSN has a PEG ratio of 1.2 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.69 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Allison Transmission (ALSN) Increases Yet Falls Behind Market: What Investors Need to Know
Allison Transmission (ALSN - Free Report) closed at $59.30 in the latest trading session, marking a +0.9% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.
Coming into today, shares of the automatic transmission maker had gained 0.55% in the past month. In that same time, the Auto-Tires-Trucks sector lost 1.77%, while the S&P 500 lost 5.17%.
The upcoming earnings release of Allison Transmission will be of great interest to investors. The company's earnings report is expected on October 25, 2023. The company is expected to report EPS of $1.70, up 17.24% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $753.31 million, indicating a 6.1% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.99 per share and a revenue of $3.03 billion, signifying shifts of +26.4% and +9.31%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Allison Transmission. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.88% higher. Currently, Allison Transmission is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Allison Transmission currently has a Forward P/E ratio of 8.4. This signifies a discount in comparison to the average Forward P/E of 13.09 for its industry.
Investors should also note that ALSN has a PEG ratio of 1.2 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.69 at the close of the market yesterday.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.