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Is Allison Transmission Holdings (ALSN) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

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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. Allison Transmission (ALSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

Allison Transmission is one of 124 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ALSN's full-year earnings has moved 4.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ALSN has returned 22.5% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 43.9% on average. This means that Allison Transmission is performing better than its sector in terms of year-to-date returns.

Modine (MOD - Free Report) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 101.8%.

For Modine, the consensus EPS estimate for the current year has increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Allison Transmission is a member of the Automotive - Original Equipment industry, which includes 62 individual companies and currently sits at #148 in the Zacks Industry Rank. This group has lost an average of 29.6% so far this year, so ALSN is performing better in this area. Modine is also part of the same industry.

Allison Transmission and Modine could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.


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