Is Allison Transmission Holdings (ALSN) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Allison Transmission (ALSN) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

Allison Transmission is one of 103 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ALSN's full-year earnings has moved 8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, ALSN has moved about 16.7% on a year-to-date basis. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -8.5% on a year-to-date basis. As we can see, Allison Transmission is performing better than its sector in the calendar year.

China Yuchai (CYD) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.3%.

For China Yuchai, the consensus EPS estimate for the current year has increased 40.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Allison Transmission belongs to the Automotive - Original Equipment industry, a group that includes 54 individual stocks and currently sits at #74 in the Zacks Industry Rank. This group has lost an average of 3.6% so far this year, so ALSN is performing better in this area. China Yuchai is also part of the same industry.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Allison Transmission and China Yuchai. These stocks will be looking to continue their solid performance.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report

Story Continues

China Yuchai International Limited (CYD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments