Allison Transmission Holdings, Inc. (ALSN) Buy or Sell Stock Guide

Last updated: Jun 12, '19

Are you looking for the analysis of Allison Transmission Holdings, Inc. (ALSN) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 5 reasons to buy and 4 reasons to sell ALSN stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ALSN stock:

  • Is ALSN a buy or a sell?
  • Should I sell or hold ALSN stock today?
  • Is ALSN a good buy / investment?
  • What are ALSN analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ALSN stock:

1. ALSN profitability is improving. The YoY profit margin change was 1.27percentage points. See ALSN profitability chart.

2. ALSN forward dividend yield is 1.28%, higher than the industry (0.59%) and sector (0.51%) forward dividend yields. See ALSN forward dividend chart.

3. ALSN forward P/E ratio is 9.08, and it’s low compared to its industry peers’ P/E ratios. See ALSN forward P/E ratio chart.

4. ALSN Price/Sales ratio is 1.83, and it’s low compared to its industry peers’ P/S ratios. See ALSN forward Price/Sales ratio chart.

5. ALSN average analyst price target ($50.00) is above its current price ($43.95). See ALSN price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ALSN stock (i.e., the bear case):

1. ALSN quarterly revenue growth was 1.80%, lower than the industry and sector average revenue growth (5.67% and 4.40%, respectively). See ALSN revenue growth chart.

2. ALSN Price/Book ratio is 6.95, and it’s high compared to its industry peers’ P/B ratios. See ALSN forward Price/Book ratio chart.

3. ALSN PEG ratio (P/E adjusted for growth) is 1.54, and it’s high compared to its industry peers’ PEG ratios. See ALSN PEG chart.

4. ALSN short interest (days to cover the shorts) ratio is 3.7. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ALSN short interest ratio chart.

Now let's look at the key statistics for ALSN:

Metrics ALSN
Price $45.41
Average Price Target / Upside $50.00 / 10.12%
Average Analyst Rating Hold
Industry Auto Parts
Sector Consumer Cyclical
Number of Employees 2,900
Market Cap $5.34B
Forward P/E Ratio 9.73
Price/Book Ratio 1.96
PEG 1.44
Revenue (TTM) $2.72B
YoY Quarterly Revenue Growth 1.8%
Profit Margin 24.04%

What are your thoughts on ALSN?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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