Allison Transmission (ALSN) closed the most recent trading day at $75.39, moving -1.1% from the previous trading session. This change lagged the S&P 500's 1.03% gain on the day. Meanwhile, the Dow gained 0.34%, and the Nasdaq, a tech-heavy index, added 1.51%.

Shares of the automatic transmission maker have appreciated by 24.19% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 3.86% and the S&P 500's gain of 3.21%.

Investors will be eagerly watching for the performance of Allison Transmission in its upcoming earnings disclosure. The company is expected to report EPS of $1.87, up 1.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $759.85 million, up 2.54% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $3.1 billion, which would represent changes of +3.24% and +2.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Allison Transmission. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.61% higher. Allison Transmission is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Allison Transmission is presently trading at a Forward P/E ratio of 9.97. This denotes a discount relative to the industry's average Forward P/E of 12.91.

It's also important to note that ALSN currently trades at a PEG ratio of 1.42. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Automotive - Original Equipment industry stood at 0.83 at the close of the market yesterday.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.