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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Allison Transmission Holdings (ALSN - Free Report) . ALSN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.15, while its industry has an average P/E of 20.71. Over the last 12 months, ALSN's Forward P/E has been as high as 8.44 and as low as 5.75, with a median of 7.16.
Investors should also note that ALSN holds a PEG ratio of 1.02. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALSN's industry has an average PEG of 1.19 right now. ALSN's PEG has been as high as 1.21 and as low as 0.82, with a median of 1.02, all within the past year.
These are only a few of the key metrics included in Allison Transmission Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALSN looks like an impressive value stock at the moment.
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company value investors might notice is Allison Transmission Holdings (ALSN - Free Report) . ALSN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.15, while its industry has an average P/E of 20.71. Over the last 12 months, ALSN's Forward P/E has been as high as 8.44 and as low as 5.75, with a median of 7.16.
Investors should also note that ALSN holds a PEG ratio of 1.02. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALSN's industry has an average PEG of 1.19 right now. ALSN's PEG has been as high as 1.21 and as low as 0.82, with a median of 1.02, all within the past year.
These are only a few of the key metrics included in Allison Transmission Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ALSN looks like an impressive value stock at the moment.