While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.31, which compares to its industry's average of 17.85. ALSN's Forward P/E has been as high as 13.43 and as low as 9.25, with a median of 11.03, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Allison Transmission Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALSN feels like a great value stock at the moment.
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Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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