Allison Transmission (ALSN) came out with quarterly earnings of $2.27 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.76 per share a year ago.
The 22% price increase since August outperformed the S&P 500, indicating strong momentum, despite my earlier concerns about valuation. The financial statements show strong positive cash flows, improved debt management, and solid liquidity over the past couple of years, fully backing up the stock's strong momentum. Peer comparisons reveal the company isn't overvalued, despite high historical valuation ratios.
Allison Transmission (ALSN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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Allison Transmission (ALSN) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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Why investors should use the Zacks Earnings ESP tool to help find stocks that are poised to top quarterly earnings estimates.
With the Zacks Auto Original Equipment industry being favorably ranked currently, stocks like ALSN, BWA and ALV are worth keeping an eye on.
ALSN is poised to benefit from rising global defense budgets and continued innovation in product development amid high R&D and labor costs.
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Allison Transmission (ALSN) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.