Allison Transmission Holdings, Inc. (ALSN - Free Report) stock looks promising at this point. In the past six months, the company’s shares have improved 8.2%.
If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock which is poised to sustain the momentum, going forward.
Let’s delve deeper into factors that are working in favor of this designer and manufacturer of fully-automatic transmissions for commercial and defense vehicles.
Solid Rank & VGM Score: Allison Transmission currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential for investors.
An Outperformer: Allison Transmission has outperformed the industry it belongs to in the past six months. The company’s shares have increased 8.2%, against the 31.1% decline of the industry.
Estimates Movement: The Zacks Consensus Estimate for current-quarter earnings has improved in the past two months. Over this period, earnings estimates have inched up 1.8% to $1.11.
Positive 2018 Outlook
For 2018, Allison Transmission anticipates net sales to increase 18-19% from $2.3 billion recorded in 2017. The prior expectation was of 15-18% rise. This projection is backed by higher demand for global on- and off-highway products, price increases on few products as well as Allison’s continued growth initiatives.
A few other top-ranked stocks in the auto space are Gentex Corporation (GNTX - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and CarGurus, Inc (CARG - Free Report) . While Gentex and Fox Factory currently sport a Zacks Rank #1, CarGurus carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gentex has an expected long-term growth rate of 11.3%. In the past two years, shares of the company have inched up 0.7%.
Fox Factory has an expected long-term growth rate of 17.9%. In the past six months, shares of the company have rallied 25.6%.
CarGurus has an expected long-term growth rate of 5%. In the past year, shares of the company have increased 11.8%.
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