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Why Allison Transmission (ALSN) Might Be a Diamond in the Rough

Zacks

It commonly happens in stock investing that investors miss the chance of buying winning stocks that they knew would stand out. Before they take the plunge, others get to know the hidden potential and enter into these stocks, pushing them out of reach.

So, instead of repenting, spotting the off-the-radar potential winners and immediately investing in them could be a smart decision.

One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Allison Transmission Holdings, Inc. ALSN. This Automotive stock has actually seen estimates rise over the past month for the current fiscal year by about 7.8%. But that is not yet reflected in its price, as the stock lost 8.1% over the same time frame.

Allison Transmission Holdings, Inc. Price and Consensus

Allison Transmission Holdings, Inc. Price and Consensus | Allison Transmission Holdings, Inc. Quote


You should not be concerned about the price remaining muted going forward. This year’s expected earnings growth over the prior year is 52.8%, which should ultimately translate into price appreciation.

And if this isn’t enough, ALSN currently sports a Zacks Rank #1 (Strong Buy), which further underscores the potential for its outperformance (See the performance of Zacks' portfolios and strategies here: About Zacks Performance). You can see the complete list of today’s Zacks #1 Rank stocks here.

So if you are looking for a stock flying under-the-radar that is well-equipped to bounce down the road, make sure to consider Allison Transmission. Solid estimate revisions and an impressive Zacks Rank suggest that better days may be ahead for ALSN and that now might be an interesting buying opportunity.

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