Allison Transmission Stock Discussion

Chairman's share sale at current price is concerning. No insider buying in the last year and history of sales make us cautious. Company not recommended for buying now.

The company's record-breaking performance and strong demand in key markets have led to a positive outlook for 2024. The strategic partnerships with Oshkosh and SANY could potentially boost the company's Q1 2024 results.

Allison Transmission Holdings' efficient capital allocation generates impressive returns, but it isn't compounding its base of capital, a characteristic of a multi-bagger. Thus, it's unlikely to be a multi-bagger going forward. Investors seeking a multi-bagger might find better luck elsewhere.

Allison Transmission Holdings' low P/E ratio is due to its lower forecast growth compared to the wider market. Investors expect limited future growth, making a strong rise in share price unlikely.

Despite high profitability from capital, Allison Transmission Holdings isn't expanding it. The 5-year stock performance may mirror this, possibly limiting its multi-bagger potential.

ACT Research released preliminary NA truck net orders for July 2023. Class 8 net orders were 16,000 units, down 5% MoM and up 45% YoY (on an easy compare). Seasonally adjusted net orders came in at 20,700 units (248,400 SAAR), up 5.5% MoM. July tends to be a seasonally weak month for orders, and order activity was in-line with ACT Research’s expectations. Per ACT, the July data implies Class 8...