Allison at first buy level
Allison has been getting hit along with other manufacturers due to rising producer prices and steel shortages, but I continue to believe the company's prospects are impressive, with an overall quite positive outlook for earnings. And this sharp drop makes the valuation attractive too. I estimate Allison's forward P/E at less than 10, forward P/S at less than 1.5, PEG at about 2, and forward dividend yield at a respectable 2%. The stock has about 23% upside to its median multiple of the last 4 years.
Sentiment on Allison is mostly positive. The average analyst rating is 6.5/10, up about half a point this week. There's about 20% upside to the average price target of $44. The put/call ratio is quite positive at under 0.5.
In technical terms, Allison is hovering right above an important trend line support. If you set a stop loss at the trend line and target $40 per share, you've got about 8% reward - risk. I personally think Allison is good for a longer swing to at least $47, but it's also possible that this trend line support won't hold. I've identified four additional buy levels based on historical highs and lows.
With everything so overvalued, I haven't seen many buying opportunities lately. So it's kind of exciting to finally see the market correcting a bit and offering up a few good deals for once. Admittedly, I run a screener for stocks that have suffered a correction and might be "on sale," and most of the stuff turning up there is still overvalued garbage, so the larger market correction may still have a ways to go.
Sentiment on Allison is mostly positive. The average analyst rating is 6.5/10, up about half a point this week. There's about 20% upside to the average price target of $44. The put/call ratio is quite positive at under 0.5.
In technical terms, Allison is hovering right above an important trend line support. If you set a stop loss at the trend line and target $40 per share, you've got about 8% reward - risk. I personally think Allison is good for a longer swing to at least $47, but it's also possible that this trend line support won't hold. I've identified four additional buy levels based on historical highs and lows.
With everything so overvalued, I haven't seen many buying opportunities lately. So it's kind of exciting to finally see the market correcting a bit and offering up a few good deals for once. Admittedly, I run a screener for stocks that have suffered a correction and might be "on sale," and most of the stuff turning up there is still overvalued garbage, so the larger market correction may still have a ways to go.
Catatan
Already got a really nice bounce from the trend line today.Catatan
Up about 15% on this trade.
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.