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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Allison Transmission Holdings (ALSN - Free Report) . ALSN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.53, which compares to its industry's average of 17.18. Over the past 52 weeks, ALSN's Forward P/E has been as high as 10.53 and as low as 6.99, with a median of 8.30.
Finally, investors should note that ALSN has a P/CF ratio of 8.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ALSN's current P/CF looks attractive when compared to its industry's average P/CF of 22.70. Over the past year, ALSN's P/CF has been as high as 8.84 and as low as 5.43, with a median of 6.59.
Garrett Motion (GTX - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. GTX is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Garrett Motion holds a P/B ratio of -3.19 and its industry's price-to-book ratio is 1.96. GTX's P/B has been as high as -2.46, as low as -6.94, with a median of -3.15 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Allison Transmission Holdings and Garrett Motion are likely undervalued currently. And when considering the strength of its earnings outlook, ALSN and GTX sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Allison Transmission Holdings (ALSN) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Allison Transmission Holdings (ALSN - Free Report) . ALSN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 10.53, which compares to its industry's average of 17.18. Over the past 52 weeks, ALSN's Forward P/E has been as high as 10.53 and as low as 6.99, with a median of 8.30.
Finally, investors should note that ALSN has a P/CF ratio of 8.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ALSN's current P/CF looks attractive when compared to its industry's average P/CF of 22.70. Over the past year, ALSN's P/CF has been as high as 8.84 and as low as 5.43, with a median of 6.59.
Garrett Motion (GTX - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. GTX is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Garrett Motion holds a P/B ratio of -3.19 and its industry's price-to-book ratio is 1.96. GTX's P/B has been as high as -2.46, as low as -6.94, with a median of -3.15 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Allison Transmission Holdings and Garrett Motion are likely undervalued currently. And when considering the strength of its earnings outlook, ALSN and GTX sticks out as one of the market's strongest value stocks.