The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allison Transmission (ALSN) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Allison Transmission is one of 100 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALSN's full-year earnings has moved 1.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ALSN has gained about 4.5% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 4.3% on average. This shows that Allison Transmission is outperforming its peers so far this year.
Geely Automobile Holdings Ltd. (GELYY) 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 1.1%.
In Geely Automobile Holdings Ltd.'s case, the consensus EPS estimate for the current year increased 27.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Allison Transmission belongs to the Automotive - Original Equipment industry, a group that includes 50 individual companies and currently sits at #149 in the Zacks Industry Rank. On average, this group has lost an average of 2.2% so far this year, meaning that ALSN is performing better in terms of year-to-date returns.
In contrast, Geely Automobile Holdings Ltd. falls under the Automotive - Foreign industry. Currently, this industry has 23 stocks and is ranked #223. Since the beginning of the year, the industry has moved -4.2%.
Allison Transmission and Geely Automobile Holdings Ltd. could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.
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
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.