Allison Transmission Holdings Stock Buy Hold or Sell Recommendation
| ALSN Stock | USD 96.13 2.56 2.74% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Allison Transmission Holdings is 'Strong Hold'. The recommendation algorithm takes into account all of Allison Transmission's available fundamental, technical, and predictive indicators you will find on this site.
Check out Allison Transmission Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Allison and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Allison Transmission Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
Allison |
Execute Allison Transmission Buy or Sell Advice
The Allison recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Allison Transmission Holdings. Macroaxis does not own or have any residual interests in Allison Transmission Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Allison Transmission's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Allison Transmission Trading Alerts and Improvement Suggestions
| Allison Transmission generated a negative expected return over the last 90 days | |
| Over 99.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: 1 Small-Cap Stock on Our Watchlist and 2 to Brush Off |
Allison Transmission Returns Distribution Density
The distribution of Allison Transmission's historical returns is an attempt to chart the uncertainty of Allison Transmission's future price movements. The chart of the probability distribution of Allison Transmission daily returns describes the distribution of returns around its average expected value. We use Allison Transmission Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Allison Transmission returns is essential to provide solid investment advice for Allison Transmission.
| Mean Return | -0.27 | Value At Risk | -3.56 | Potential Upside | 2.74 | Standard Deviation | 2.28 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Allison Transmission historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Allison Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Allison Transmission, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Allison Transmission Holdings back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corp | 2024-12-31 | 1.7 M | Aqr Capital Management Llc | 2024-12-31 | 1.5 M | Pacer Advisors, Inc. | 2024-12-31 | 1.4 M | Amvescap Plc. | 2024-12-31 | 1.2 M | Boston Partners Global Investors, Inc | 2024-12-31 | 1.1 M | Allianz Asset Management Ag | 2024-12-31 | 1.1 M | Norges Bank | 2024-12-31 | 1 M | Federated Hermes Inc | 2024-12-31 | 956.7 K | Charles Schwab Investment Management Inc | 2024-12-31 | 892.4 K | Fmr Inc | 2024-12-31 | 13 M | Vanguard Group Inc | 2024-12-31 | 9.2 M |
Allison Transmission Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 118M | (183M) | 105M | 323M | 226M | 237.3M | |
| Free Cash Flow | 446M | 460M | 490M | 659M | 801M | 571.5M | |
| Depreciation | 148M | 150M | 155M | 154M | 121M | 146.6M | |
| Other Non Cash Items | 26M | (3M) | 28M | 3M | 43M | 21.5M | |
| Capital Expenditures | 115M | 175M | 167M | 125M | 143M | 121.0M | |
| Net Income | 299M | 442M | 531M | 673M | 731M | 429.8M | |
| End Period Cash Flow | 310M | 127M | 232M | 555M | 781M | 820.1M | |
| Change Receivables | 37M | 28M | (78M) | (70M) | (63M) | (59.9M) | |
| Dividends Paid | 73M | 78M | 81M | 83M | 87M | 89.6M | |
| Change To Netincome | 81M | 89M | 74M | 38M | 43.7M | 54.8M | |
| Investments | (1M) | (111M) | (41M) | (161M) | (147M) | (139.7M) |
Allison Transmission Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Allison Transmission or Machinery sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Allison Transmission's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Allison stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.17 | |
β | Beta against Dow Jones | 1.04 | |
σ | Overall volatility | 2.32 | |
Ir | Information ratio | -0.08 |
Allison Transmission Volatility Alert
Allison Transmission Holdings exhibits very low volatility with skewness of -2.47 and kurtosis of 11.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Allison Transmission's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Allison Transmission's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Allison Transmission Fundamentals Vs Peers
Comparing Allison Transmission's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Allison Transmission's direct or indirect competition across all of the common fundamentals between Allison Transmission and the related equities. This way, we can detect undervalued stocks with similar characteristics as Allison Transmission or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Allison Transmission's fundamental indicators could also be used in its relative valuation, which is a method of valuing Allison Transmission by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Allison Transmission to competition |
| Fundamentals | Allison Transmission | Peer Average |
| Return On Equity | 0.51 | -0.31 |
| Return On Asset | 0.12 | -0.14 |
| Profit Margin | 0.23 % | (1.27) % |
| Operating Margin | 0.27 % | (5.51) % |
| Current Valuation | 9.85 B | 16.62 B |
| Shares Outstanding | 85.52 M | 571.82 M |
| Shares Owned By Insiders | 0.64 % | 10.09 % |
| Shares Owned By Institutions | 99.36 % | 39.21 % |
| Number Of Shares Shorted | 1.8 M | 4.71 M |
| Price To Earning | 18.00 X | 28.72 X |
| Price To Book | 4.98 X | 9.51 X |
| Price To Sales | 2.55 X | 11.42 X |
| Revenue | 3.23 B | 9.43 B |
| Gross Profit | 1.54 B | 27.38 B |
| EBITDA | 1.11 B | 3.9 B |
| Net Income | 731 M | 570.98 M |
| Cash And Equivalents | 180 M | 2.7 B |
| Cash Per Share | 1.89 X | 5.01 X |
| Total Debt | 2.41 B | 5.32 B |
| Debt To Equity | 3.29 % | 48.70 % |
| Current Ratio | 1.72 X | 2.16 X |
| Book Value Per Share | 6.23 X | 1.93 K |
| Cash Flow From Operations | 801 M | 971.22 M |
| Short Ratio | 2.34 X | 4.00 X |
| Earnings Per Share | 8.31 X | 3.12 X |
| Price To Earnings To Growth | 1.72 X | 4.89 X |
| Target Price | 110.2 | |
| Number Of Employees | 4 K | 18.84 K |
| Beta | 1.02 | -0.15 |
| Market Capitalization | 8.22 B | 19.03 B |
| Total Asset | 5.34 B | 29.47 B |
| Retained Earnings | (239 M) | 9.33 B |
| Working Capital | 1.03 B | 1.48 B |
Note: Disposition of 17316 shares by G Bohley of Allison Transmission subject to Rule 16b-3 [view details]
Allison Transmission Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Allison . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Allison Transmission Buy or Sell Advice
When is the right time to buy or sell Allison Transmission Holdings? Buying financial instruments such as Allison Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Allison Transmission in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 14 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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Check out Allison Transmission Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allison Transmission. If investors know Allison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allison Transmission listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.17 | Dividend Share 1 | Earnings Share 8.31 | Revenue Per Share | Quarterly Revenue Growth 0.204 |
The market value of Allison Transmission is measured differently than its book value, which is the value of Allison that is recorded on the company's balance sheet. Investors also form their own opinion of Allison Transmission's value that differs from its market value or its book value, called intrinsic value, which is Allison Transmission's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allison Transmission's market value can be influenced by many factors that don't directly affect Allison Transmission's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allison Transmission's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allison Transmission is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allison Transmission's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.