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Here's Why Allison (ALSN) Must be in Your Portfolio Now
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Allison Transmission Holdings, Inc. (ALSN - Free Report) has been performing well of late. With a market capitalization of more than $6 billion, the company’s stock has witnessed an 18% rise over the past six months outperforming the industry’s decline of 10.5%.
Allison has a VGM score of A and long-term growth rate of 10%. Moreover, it has outpaced the Zacks Consensus Estimate in all of the trailing four quarters, with a positive average earnings surprise of 39.8%. With strong fundamentals and robust long-term growth opportunities, this stock can be a solid bet.
At the end of the last month, the company reported second-quarter 2018 earnings and revenues. In the reported quarter, Allison’s adjusted earnings of $1.29 per share have driven past the Zacks Consensus Estimate. Further, net sales of $711 million surpassed the same. Moreover, both the figures witnessed year-over-year growth, driven by positive demand for global on- and off-highway products along with service parts, support equipment & other end markets. Further, with an expectation of this demand to continue, the company anticipates net sales for 2018 to increase 15-18% from $2.3 billion recorded in 2017.
In second-quarter 2018, the company repurchased shares worth $244 million and paid a quarterly dividend of 15 cents per share. A strong cash flow aids Allison to return capital to shareholders, except investing in product and technology developments and expand into new markets.
Allison Transmission Holdings, Inc. Price and Consensus
Being one of the largest manufacturers of fully-automatic transmissions for medium- and heavy-duty commercial vehicles makes Allison a major player in the market. At present, it holds approximately 60% of the total market. The company’s diversified presence in North America and focus to expand in emerging, and under-served markets will drive its growth further.
Zacks Rank & Other Key Picks
Allison currently sports a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Fox Factory Holding Corporation (FOXF - Free Report) and PACCAR Inc. (PCAR - Free Report) . Honda presently carries a Zacks Rank #2 (Buy) while Fox Factory and PACCAR sport a Zacks Rank of 1. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Honda has an expected long-term growth rate of 3%. Shares of the company have risen 7.6% in the past year.
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 74.6%.
PACCAR has an expected long-term growth rate of 10.8%. Over a year, shares of the company have gained 2.2%.
Today's Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why Allison (ALSN) Must be in Your Portfolio Now
Allison Transmission Holdings, Inc. (ALSN - Free Report) has been performing well of late. With a market capitalization of more than $6 billion, the company’s stock has witnessed an 18% rise over the past six months outperforming the industry’s decline of 10.5%.
Allison has a VGM score of A and long-term growth rate of 10%. Moreover, it has outpaced the Zacks Consensus Estimate in all of the trailing four quarters, with a positive average earnings surprise of 39.8%. With strong fundamentals and robust long-term growth opportunities, this stock can be a solid bet.
At the end of the last month, the company reported second-quarter 2018 earnings and revenues. In the reported quarter, Allison’s adjusted earnings of $1.29 per share have driven past the Zacks Consensus Estimate. Further, net sales of $711 million surpassed the same. Moreover, both the figures witnessed year-over-year growth, driven by positive demand for global on- and off-highway products along with service parts, support equipment & other end markets. Further, with an expectation of this demand to continue, the company anticipates net sales for 2018 to increase 15-18% from $2.3 billion recorded in 2017.
In second-quarter 2018, the company repurchased shares worth $244 million and paid a quarterly dividend of 15 cents per share. A strong cash flow aids Allison to return capital to shareholders, except investing in product and technology developments and expand into new markets.
Allison Transmission Holdings, Inc. Price and Consensus
Allison Transmission Holdings, Inc. Price and Consensus | Allison Transmission Holdings, Inc. Quote
Being one of the largest manufacturers of fully-automatic transmissions for medium- and heavy-duty commercial vehicles makes Allison a major player in the market. At present, it holds approximately 60% of the total market. The company’s diversified presence in North America and focus to expand in emerging, and under-served markets will drive its growth further.
Zacks Rank & Other Key Picks
Allison currently sports a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Fox Factory Holding Corporation (FOXF - Free Report) and PACCAR Inc. (PCAR - Free Report) . Honda presently carries a Zacks Rank #2 (Buy) while Fox Factory and PACCAR sport a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Honda has an expected long-term growth rate of 3%. Shares of the company have risen 7.6% in the past year.
Fox Factory has an expected long-term growth rate of 16.8%. Over a year, shares of the company have gained 74.6%.
PACCAR has an expected long-term growth rate of 10.8%. Over a year, shares of the company have gained 2.2%.
Today's Stocks From Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>