Yahoo Finance Are Investors Undervaluing Allison Transmission Holdings (ALSN) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Allison Transmission Holdings (ALSN) is a stock many investors are watching right now. ALSN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.93, while its industry has an average P/E of 21.83. Over the past 52 weeks, ALSN's Forward P/E has been as high as 8.44 and as low as 5.75, with a median of 7.14.
Investors will also notice that ALSN has a PEG ratio of 1.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALSN's industry has an average PEG of 1.21 right now. Over the past 52 weeks, ALSN's PEG has been as high as 1.21 and as low as 0.82, with a median of 1.02.
If you're looking for another solid Automotive - Original Equipment value stock, take a look at Oshkosh (OSK). OSK is a # 2 (Buy) stock with a Value score of A.
Oshkosh is currently trading with a Forward P/E ratio of 12.37 while its PEG ratio sits at 0.34. Both of the company's metrics compare favorably to its industry's average P/E of 21.83 and average PEG ratio of 1.21.
Over the last 12 months, OSK's P/E has been as high as 25.62, as low as 11.11, with a median of 13.53, and its PEG ratio has been as high as 1.43, as low as 0.34, with a median of 0.54.
Furthermore, Oshkosh holds a P/B ratio of 1.54 and its industry's price-to-book ratio is 2.58. OSK's P/B has been as high as 2.18, as low as 1.54, with a median of 1.90 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Allison Transmission Holdings and Oshkosh are likely undervalued currently. And when considering the strength of its earnings outlook, ALSN and OSK sticks out as one of the market's strongest value stocks.
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Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
