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Allison Transmission (ALSN) Laps the Stock Market: Here's Why
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Allison Transmission (ALSN - Free Report) ended the recent trading session at $77.37, demonstrating a +1.48% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.39%.
The the stock of automatic transmission maker has risen by 8.03% in the past month, leading the Auto-Tires-Trucks sector's loss of 2.74% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. The company is forecasted to report an EPS of $1.87, showcasing a 1.08% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $759.85 million, indicating a 2.54% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $3.1 billion, which would represent changes of +3.24% and +2.11%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 1.81% rise in the Zacks Consensus EPS estimate. Allison Transmission is currently sporting a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Allison Transmission is at present trading with a Forward P/E ratio of 9.97. This represents a discount compared to its industry's average Forward P/E of 12.81.
It is also worth noting that ALSN currently has a PEG ratio of 1.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.86.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Allison Transmission (ALSN) Laps the Stock Market: Here's Why
Allison Transmission (ALSN - Free Report) ended the recent trading session at $77.37, demonstrating a +1.48% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.39%.
The the stock of automatic transmission maker has risen by 8.03% in the past month, leading the Auto-Tires-Trucks sector's loss of 2.74% and the S&P 500's gain of 2.97%.
The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. The company is forecasted to report an EPS of $1.87, showcasing a 1.08% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $759.85 million, indicating a 2.54% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $3.1 billion, which would represent changes of +3.24% and +2.11%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, there's been a 1.81% rise in the Zacks Consensus EPS estimate. Allison Transmission is currently sporting a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Allison Transmission is at present trading with a Forward P/E ratio of 9.97. This represents a discount compared to its industry's average Forward P/E of 12.81.
It is also worth noting that ALSN currently has a PEG ratio of 1.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.86.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 42% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.