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Allison Transmission (ALSN) Gains As Market Dips: What You Should Know
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Allison Transmission (ALSN - Free Report) closed the most recent trading day at $82.28, moving +0.33% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.95%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq decreased by 0.84%.
Prior to today's trading, shares of the automatic transmission maker had gained 8.74% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 1.74% and the S&P 500's gain of 1.78% in that time.
Market participants will be closely following the financial results of Allison Transmission in its upcoming release. The company is predicted to post an EPS of $1.87, indicating a 1.08% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $759.85 million, up 2.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.64 per share and a revenue of $3.1 billion, demonstrating changes of +3.24% and +2.11%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has remained steady. Allison Transmission is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Allison Transmission is presently being traded at a Forward P/E ratio of 10.73. This valuation marks a discount compared to its industry's average Forward P/E of 13.06.
We can also see that ALSN currently has a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.83.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Allison Transmission (ALSN) Gains As Market Dips: What You Should Know
Allison Transmission (ALSN - Free Report) closed the most recent trading day at $82.28, moving +0.33% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.95%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq decreased by 0.84%.
Prior to today's trading, shares of the automatic transmission maker had gained 8.74% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 1.74% and the S&P 500's gain of 1.78% in that time.
Market participants will be closely following the financial results of Allison Transmission in its upcoming release. The company is predicted to post an EPS of $1.87, indicating a 1.08% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $759.85 million, up 2.54% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.64 per share and a revenue of $3.1 billion, demonstrating changes of +3.24% and +2.11%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has remained steady. Allison Transmission is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Allison Transmission is presently being traded at a Forward P/E ratio of 10.73. This valuation marks a discount compared to its industry's average Forward P/E of 13.06.
We can also see that ALSN currently has a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.83.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.