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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. Has Allison Transmission (ALSN - Free Report) been one of those stocks this year? 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 one of 117 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ALSN's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ALSN has returned 44.9% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of 44.3%. This shows that Allison Transmission is outperforming its peers so far this year.

Tesla (TSLA - 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 113.2%.

The consensus estimate for Tesla's current year EPS has increased 1.1% 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 60 individual stocks and currently sits at #96 in the Zacks Industry Rank. This group has gained an average of 8.8% so far this year, so ALSN is performing better in this area.

Tesla, however, belongs to the Automotive - Domestic industry. Currently, this 19-stock industry is ranked #91. The industry has moved +66% so far this year.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Allison Transmission and Tesla. These stocks will be looking to continue their solid performance.


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