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Is Allison Transmission Holdings (ALSN) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.22 right now. For comparison, its industry sports an average P/E of 21.41. ALSN's Forward P/E has been as high as 9.72 and as low as 5.75, with a median of 7.08, all within the past year.
Investors should also note that ALSN holds a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALSN's industry currently sports an average PEG of 1.12. Over the past 52 weeks, ALSN's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allison Transmission Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALSN feels like a great value stock at the moment.
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Is Allison Transmission Holdings (ALSN) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.22 right now. For comparison, its industry sports an average P/E of 21.41. ALSN's Forward P/E has been as high as 9.72 and as low as 5.75, with a median of 7.08, all within the past year.
Investors should also note that ALSN holds a PEG ratio of 1.03. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ALSN's industry currently sports an average PEG of 1.12. Over the past 52 weeks, ALSN's PEG has been as high as 1.39 and as low as 0.82, with a median of 1.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allison Transmission Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALSN feels like a great value stock at the moment.