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Allison Transmission (ALSN) Dips More Than Broader Market: What You Should Know

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In the latest market close, Allison Transmission (ALSN - Free Report) reached $59.46, with a -1.21% movement compared to the previous day. This change lagged the S&P 500's 0.63% loss on the day. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.63%.

Prior to today's trading, shares of the automatic transmission maker had gained 2.4% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 0.98% and the S&P 500's loss of 2.35% in that time.

The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. The company is scheduled to release its earnings on October 25, 2023. On that day, Allison Transmission is projected to report earnings of $1.70 per share, which would represent year-over-year growth of 17.24%. Alongside, our most recent consensus estimate is anticipating revenue of $753.31 million, indicating a 6.1% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.99 per share and a revenue of $3.03 billion, demonstrating changes of +26.4% and +9.31%, respectively, from the preceding year.

Any recent changes to analyst estimates for Allison Transmission should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.88% higher within the past month. Allison Transmission is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Allison Transmission is holding a Forward P/E ratio of 8.61. This valuation marks a discount compared to its industry's average Forward P/E of 13.27.

We can also see that ALSN currently has a PEG ratio of 1.23. 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. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.72 at the close of the market yesterday.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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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