Allison Transmission Holdings (ALSN) Highlighted As Strong And Under The Radar Stock Of The Day
Trade-Ideas LLC identified
(
) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Allison Transmission Holdings as such a stock due to the following factors:
- ALSN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.8 million.
- ALSN has traded 51.50750000000000028421709430404007434844970703125 options contracts today.
- ALSN is making at least a new 3-day high.
- ALSN has a PE ratio of 3.
- ALSN is mentioned 0.90 times per day on StockTwits.
- ALSN has not yet been mentioned on StockTwits today.
- ALSN is currently in the upper 20% of its 1-year range.
- ALSN is in the upper 35% of its 20-day range.
- ALSN is in the upper 45% of its 5-day range.
- ALSN is currently trading above yesterday's high.
'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.
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More details on ALSN:
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles. The stock currently has a dividend yield of 2.2%. ALSN has a PE ratio of 3. Currently there are 7 analysts that rate Allison Transmission Holdings a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Allison Transmission Holdings has been 1.4 million shares per day over the past 30 days. Allison Transmission has a market cap of $4.7 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.16 and a short float of 1.5% with 0.91 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Allison Transmission Holdings as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has increased to $117.90 million or 47.19% when compared to the same quarter last year. In addition, ALLISON TRANSMISSION HLDGS has also vastly surpassed the industry average cash flow growth rate of -10.82%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 13.0%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for ALLISON TRANSMISSION HLDGS is rather high; currently it is at 56.09%. Regardless of ALSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ALSN's net profit margin of 10.45% compares favorably to the industry average.
- ALLISON TRANSMISSION HLDGS's earnings per share declined by 26.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ALLISON TRANSMISSION HLDGS reported lower earnings of $1.03 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $1.03).
- The change in net income from the same quarter one year ago has exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income has significantly decreased by 29.4% when compared to the same quarter one year ago, falling from $68.40 million to $48.30 million.
- You can view the full Allison Transmission Holdings Ratings Report.
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