Yahoo Finance Allison Transmission (ALSN) Declines More Than Market: Some Information for Investors
Allison Transmission (ALSN) closed the most recent trading day at $79.39, moving -0.49% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.52%.
The automatic transmission maker's shares have seen an increase of 2.74% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 4.21% and the S&P 500's loss of 1.66%.
The investment community will be closely monitoring the performance of Allison Transmission in its forthcoming earnings report. The company is scheduled to release its earnings on April 25, 2024. The company's earnings per share (EPS) are projected to be $1.89, reflecting a 2.16% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $765.08 million, indicating a 3.25% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $7.76 per share and a revenue of $3.12 billion, demonstrating changes of +4.86% and +2.69%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.47% higher within the past month. Allison Transmission currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Allison Transmission is presently trading at a Forward P/E ratio of 10.29. Its industry sports an average Forward P/E of 12.08, so one might conclude that Allison Transmission is trading at a discount comparatively.
Meanwhile, ALSN's PEG ratio is currently 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.73.
The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 148, placing it within the bottom 42% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
