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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.56. This compares to its industry's average Forward P/E of 20.16. ALSN's Forward P/E has been as high as 10.16 and as low as 6.88, with a median of 8.09, all within the past year.
Finally, our model also underscores that ALSN has a P/CF ratio of 7.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ALSN's P/CF compares to its industry's average P/CF of 29.97. Over the past year, ALSN's P/CF has been as high as 7.68 and as low as 5.43, with a median of 6.47.
Investors could also keep in mind Oshkosh (OSK - Free Report) , an Automotive - Original Equipment stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Oshkosh currently holds a Forward P/E ratio of 10.36, and its PEG ratio is 1.40. In comparison, its industry sports average P/E and PEG ratios of 20.16 and 1.12.
Over the last 12 months, OSK's P/E has been as high as 15.73, as low as 9.52, with a median of 11.37, and its PEG ratio has been as high as 1.46, as low as 0.21, with a median of 0.33.
Furthermore, Oshkosh holds a P/B ratio of 1.92 and its industry's price-to-book ratio is 2.64. OSK's P/B has been as high as 2.04, as low as 1.47, with a median of 1.77 over the past 12 months.
These are only a few of the key metrics included in Allison Transmission Holdings and Oshkosh strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALSN and OSK look like an impressive value stock at the moment.
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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Allison Transmission Holdings (ALSN - Free Report) is a stock many investors are watching right now. ALSN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.56. This compares to its industry's average Forward P/E of 20.16. ALSN's Forward P/E has been as high as 10.16 and as low as 6.88, with a median of 8.09, all within the past year.
Finally, our model also underscores that ALSN has a P/CF ratio of 7.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ALSN's P/CF compares to its industry's average P/CF of 29.97. Over the past year, ALSN's P/CF has been as high as 7.68 and as low as 5.43, with a median of 6.47.
Investors could also keep in mind Oshkosh (OSK - Free Report) , an Automotive - Original Equipment stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Oshkosh currently holds a Forward P/E ratio of 10.36, and its PEG ratio is 1.40. In comparison, its industry sports average P/E and PEG ratios of 20.16 and 1.12.
Over the last 12 months, OSK's P/E has been as high as 15.73, as low as 9.52, with a median of 11.37, and its PEG ratio has been as high as 1.46, as low as 0.21, with a median of 0.33.
Furthermore, Oshkosh holds a P/B ratio of 1.92 and its industry's price-to-book ratio is 2.64. OSK's P/B has been as high as 2.04, as low as 1.47, with a median of 1.77 over the past 12 months.
These are only a few of the key metrics included in Allison Transmission Holdings and Oshkosh strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ALSN and OSK look like an impressive value stock at the moment.