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The Zacks Rank Explained: How to Find Strong Buy Auto, Tires and Trucks Stocks

Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.

Should You Buy #1 (Strong Buy)-Ranked Allison Transmission (ALSN) for Your Portfolio?

Allison Transmission was upgraded to the Zacks Rank #1 list on February 16, 2024. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.

Headquartered in Indianapolis, IN, Allison Transmission Holdings, Inc. is a manufacturer of fully-automatic transmissions for medium and heavy-duty commercial and heavy-tactical U.S. defense vehicles. In fact, the company is the largest producer of fully-automatic transmissions, holding the leading position in several niche markets. The firm also offers electric hybrid and fully electric propulsion systems.

廣告

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.67 to $7.64 per share. ALSN also boasts an average earnings surprise of 19.5%.

Earnings are expected to grow 3.2% for the current fiscal year, while revenue is projected to increase 2.1%.

Even more impressive, ALSN has gained in value over the past four weeks, up 6.9% compared to the S&P 500's gain of 3.6%.

Bottom Line

With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Allison Transmission could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.

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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report

Zacks Investment Research