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Is Allison Transmission Holdings (ALSN) Outperforming Other Auto-Tires-Trucks Stocks This Year?
For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Allison Transmission (ALSN - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Allison Transmission is a member of our Auto-Tires-Trucks group, which includes 125 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ALSN's full-year earnings has moved 3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, ALSN has gained about 16.3% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -43.9% on a year-to-date basis. This means that Allison Transmission is performing better than its sector in terms of year-to-date returns.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Genuine Parts (GPC - Free Report) . The stock is up 27.2% year-to-date.
In Genuine Parts' case, the consensus EPS estimate for the current year increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Allison Transmission belongs to the Automotive - Original Equipment industry, a group that includes 63 individual stocks and currently sits at #157 in the Zacks Industry Rank. Stocks in this group have lost about 32.7% so far this year, so ALSN is performing better this group in terms of year-to-date returns.
In contrast, Genuine Parts falls under the Automotive - Replacement Parts industry. Currently, this industry has 7 stocks and is ranked #50. Since the beginning of the year, the industry has moved -6.8%.
Investors with an interest in Auto-Tires-Trucks stocks should continue to track Allison Transmission and Genuine Parts. These stocks will be looking to continue their solid performance.