The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Allison Transmission Holdings (ALSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of ALSN and the rest of the Auto-Tires-Trucks group's stocks.
Allison Transmission Holdings is one of 85 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ALSN is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALSN's full-year earnings has moved 7.52% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ALSN has gained about 8.88% so far this year. At the same time, Auto-Tires-Trucks stocks have gained an average of 6.44%. As we can see, Allison Transmission Holdings is performing better than its sector in the calendar year.
Breaking things down more, ALSN is a member of the Automotive - Original Equipment industry, which includes 44 individual companies and currently sits at #171 in the Zacks Industry Rank. This group has gained an average of 12.60% so far this year, so ALSN is slightly underperforming its industry in this area.
Investors in the Auto-Tires-Trucks sector will want to keep a close eye on ALSN as it attempts to continue its solid performance.