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Allison Transmission (ALSN) Dips More Than Broader Markets: What You Should Know
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Allison Transmission (ALSN - Free Report) closed the most recent trading day at $57.87, moving -0.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the automatic transmission maker had gained 7.91% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.64% and outpacing the S&P 500's gain of 3.39% in that time.
Investors will be hoping for strength from Allison Transmission as it approaches its next earnings release, which is expected to be July 27, 2023. The company is expected to report EPS of $1.59, up 26.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $741.43 million, up 11.66% from the year-ago period.
ALSN's full-year Zacks Consensus Estimates are calling for earnings of $6.54 per share and revenue of $2.98 billion. These results would represent year-over-year changes of +18.26% and +7.68%, respectively.
It is also important to note the recent changes to analyst estimates for Allison Transmission. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. Allison Transmission is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Allison Transmission's current valuation metrics, including its Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 15.5, which means Allison Transmission is trading at a discount to the group.
Meanwhile, ALSN's PEG ratio is currently 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Allison Transmission (ALSN) Dips More Than Broader Markets: What You Should Know
Allison Transmission (ALSN - Free Report) closed the most recent trading day at $57.87, moving -0.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the automatic transmission maker had gained 7.91% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.64% and outpacing the S&P 500's gain of 3.39% in that time.
Investors will be hoping for strength from Allison Transmission as it approaches its next earnings release, which is expected to be July 27, 2023. The company is expected to report EPS of $1.59, up 26.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $741.43 million, up 11.66% from the year-ago period.
ALSN's full-year Zacks Consensus Estimates are calling for earnings of $6.54 per share and revenue of $2.98 billion. These results would represent year-over-year changes of +18.26% and +7.68%, respectively.
It is also important to note the recent changes to analyst estimates for Allison Transmission. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. Allison Transmission is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Allison Transmission's current valuation metrics, including its Forward P/E ratio of 8.93. For comparison, its industry has an average Forward P/E of 15.5, which means Allison Transmission is trading at a discount to the group.
Meanwhile, ALSN's PEG ratio is currently 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Original Equipment stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.