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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.28 right now. For comparison, its industry sports an average P/E of 18.74. Over the past 52 weeks, ALSN's Forward P/E has been as high as 9.72 and as low as 5.75, with a median of 7.10.
Investors will also notice that ALSN has a PEG ratio of 0.90. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALSN's industry has an average PEG of 0.98 right now. ALSN's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01, all within the past year.
Another great Automotive - Original Equipment stock you could consider is China Automotive Systems (CAAS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
China Automotive Systems sports a P/B ratio of 0.38 as well; this compares to its industry's price-to-book ratio of 3.21. In the past 52 weeks, CAAS's P/B has been as high as 0.45, as low as 0.21, with a median of 0.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Allison Transmission Holdings and China Automotive Systems are likely undervalued currently. And when considering the strength of its earnings outlook, ALSN and CAAS sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.28 right now. For comparison, its industry sports an average P/E of 18.74. Over the past 52 weeks, ALSN's Forward P/E has been as high as 9.72 and as low as 5.75, with a median of 7.10.
Investors will also notice that ALSN has a PEG ratio of 0.90. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ALSN's industry has an average PEG of 0.98 right now. ALSN's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01, all within the past year.
Another great Automotive - Original Equipment stock you could consider is China Automotive Systems (CAAS - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
China Automotive Systems sports a P/B ratio of 0.38 as well; this compares to its industry's price-to-book ratio of 3.21. In the past 52 weeks, CAAS's P/B has been as high as 0.45, as low as 0.21, with a median of 0.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Allison Transmission Holdings and China Automotive Systems are likely undervalued currently. And when considering the strength of its earnings outlook, ALSN and CAAS sticks out as one of the market's strongest value stocks.