ALSN Should I Buy
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Allison Transmission Holdings Inc (ALSN) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock shows a lack of positive momentum in technical indicators, mixed analyst ratings, and declining financial performance. While there are some positive catalysts, such as product innovation and partnerships, the overall sentiment and data suggest holding off on a purchase for now.
The MACD is negatively expanding (-1.725), indicating bearish momentum. RSI is neutral at 23.727, and moving averages are converging, showing no clear trend. The stock is trading near its S1 support level of 113.066, with resistance levels at 119.934 and above. The technical indicators suggest a lack of upward momentum.
Allison Transmission has expanded its partnership with Daimler Truck North America, introducing innovative products like the 3414 Regional Haul Series and 9-Speed transmission. These developments aim to enhance efficiency and productivity, potentially driving future growth.
The company's Q4 2025 financials show significant declines in revenue (-7.41% YoY), net income (-43.43% YoY), and EPS (-41.71% YoY). Additionally, analysts have mixed ratings, with some highlighting choppy end markets and a below-consensus 2026 outlook.
In Q4 2025, revenue dropped to $737M (-7.41% YoY), net income fell to $99M (-43.43% YoY), and EPS declined to 1.16 (-41.71% YoY). However, gross margin improved to 48.03% (+2.50% YoY), indicating some cost management improvements.
Analyst ratings are mixed. Citi raised its price target to $130 but maintained a Neutral rating. Oppenheimer raised its target to $135 with an Outperform rating, citing cost reductions and price increases. BofA raised its target to $95 but kept an Underperform rating, citing choppy markets and a below-consensus 2026 outlook.
