The chart of the day belongs to vehicle transmission company Allison Transmissions (ALSN), states Jim Van Meerten of BarChart.com.
I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and a Trend Seeker buy signal. I then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 4/24 the stock gained 26.45%.
ALSN Price vs Daily Moving Averages
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical US defense vehicles worldwide. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 62.20+ Weighted Alpha
- 58.95% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50, and 100 day moving averages
- 15 new highs and up 9.57% in the last month
- Relative Strength Index 74.54%
- The technical support level at $57.89
- Recently traded at $59.24 with 50-day moving average of $52.48
Fundamental Factors:
- Market Cap $5.33 billion
- P/E 9.52
- Dividend yield 1.59%
- Revenue is projected to grow 7.10% this year and another .30% next year
- Earnings are estimated to increase 19.20% this year, an additional 4.70% next year, and compound at an annual rate of 10.10% for the next five years
Analysts and Investor Sentiment—I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts gave five strong buy, two buy, eight hold, and two sell opinions on the stock
- Analysts' price targets are $42 to $82—a wide range
- The individual investors on Motley Fool are high on the stock and voted 34 to nine for the stock to beat the market with the more experienced investors voting five to zero for the same result
- Value Line ranks the stock as an above-average two
- CFRAs MarketScope rates it a strong buy
- 4,940 investors monitor the stock on Seeking Alpha
Disclosure: I/we have no stock, option, or similar derivative position in any of the companies mentioned but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least every week.
Learn more about Jim Van Meerten at BarChart.com.
