ALSN

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Stock Performance and Analyst Rating: Also Holding AG shares rose over 7% after UBS Global Research initiated coverage with a 'buy' rating, highlighting its position as the second-largest European IT distributor and projecting significant revenue growth driven by recent acquisitions and market trends.

Future Growth Projections: UBS forecasts a 46% revenue increase in FY25, largely due to the Westcoast acquisition, alongside an expected rebound in EBITDA margins and continued optimization opportunities, setting a price target of CHF 320 for the stock.

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Analyst Rating and Price Target: Tami Zakaria from J.P. Morgan has maintained a Hold rating on Allison Transmission Holdings (ALSN) with a price target of $110.00, while the stock closed at $97.30.

Insider Activity and Financial Updates: Recent insider sentiment is negative as 45 insiders have sold shares, including a significant sale by the VP, while the company has increased its quarterly dividend by 8% and announced a $1B buyback authorization amidst record sales.

Stock Performance: Allison Transmission Holdings Inc (ALSN) shares recently entered oversold territory with an RSI of 29.3, indicating potential buying opportunities for investors as the stock price fell to $95.05.

Dividend Considerations: The company's annualized dividend is $1.08 per share, yielding 1.11% at a recent price of $97.61, prompting dividend investors to assess ALSN's dividend history for future reliability.

Stock Buyback Announcement: Allison Transmission announced a $1 billion increase to its stock repurchase program, raising the total buyback amount to $5 billion, with $519 million available prior to this increase.

Dividend Increase: The company also raised its quarterly dividend by 8% to $0.27 per share, which will be payable on March 14 to shareholders of record as of March 3.

Stock Performance: Allison Transmission Holdings Inc (ALSN) shares have entered oversold territory with an RSI of 23.9, indicating potential buying opportunities for investors as the stock price has fallen to $94.26.

Dividend Considerations: Despite the recent decline, ALSN offers a dividend yield of 0.88% based on its annualized dividend of $1 per share, prompting dividend investors to assess the company's dividend history for future reliability.

U.S. Stock Market Trends: U.S. stock futures are down, with notable declines in pre-market trading for several companies, including Teradata Corporation, which fell 13.1% after missing revenue estimates and announcing a CFO departure.

Significant Stock Movements: Other companies like Spire Global and STAAR Surgical experienced drastic drops of 49.6% and 33.7%, respectively, due to poor financial results or legal issues, indicating a challenging day for the market.

Stock Performance After Earnings: Several companies saw significant stock increases after reporting earnings, with Upstart (UPST) leading at a 23.6% rise, followed by Confluent (CFLT) and Freshworks (FRSH) with gains of 14.7% and 13.8%, respectively.

Declines Post-Earnings: Conversely, STAAR Surgical (STAA) experienced the largest drop at 32.9%, along with Similarweb Ltd. (SMWB) down 27.6%, indicating mixed results across different sectors.

Market Performance: U.S. stocks experienced a slight decline as investors reacted to Federal Reserve Chair Jerome Powell's comments on interest rates and awaited the upcoming inflation report, with the S&P 500 down 0.1% and notable movements in individual stocks like Intel rising 7% and Tesla falling over 4%.

Geopolitical and Economic Factors: Tensions escalated as the EU threatened countermeasures against U.S. tariffs on aluminum and steel, while long-dated Treasury yields increased and the dollar weakened, alongside mixed performances in commodities like gold and oil.

Record Financial Performance: Allison Transmission Holdings Inc. reported record full year net sales of $3.2 billion and a diluted EPS of $8.31 for 2024, reflecting a 6% increase in sales and a 12% rise in earnings per share compared to the previous year.

Future Outlook: The company anticipates another record revenue year in 2025, with projected net sales between $3.2 billion and $3.3 billion, driven by increased demand in various markets including North America and defense sectors.

Major Earnings Reports: Key companies reporting earnings after the market close on Tuesday include Energy Transfer LP, Gilead Sciences, W. P. Carey, Super Micro Computer, and Upstart Holdings.

Additional Earnings Releases: A wide range of other companies are also set to release their earnings, including ADC, AIG, LYFT, and SAGE among others.

Partnership Continuation: Allison Transmission has extended its partnership with HST Otomotiv to provide the Allison X1100-5A4 cross-drive transmission for the Turkish Armed Forces' Next Generation T-155 Firtina Howitzer, aiming to generate an additional $100 million in annual revenue from the defense sector.

Contract Details: The new phase two contract includes the delivery of 32 transmissions starting in Q1 2026, building on the successful delivery of 10 units in phase one, with a total of 140-160 Firtina Howitzers expected to be developed.

Allison Transmission and XCMG Partnership: Allison Transmission has partnered with Xuzhou Construction Machinery Group (XCMG) to introduce the TerraTran™ fully automatic transmission in wide body mining dump trucks, enhancing productivity and drivability for mining operations in Brazil.

TerraTran Specifications and Market Impact: The TerraTran is designed for heavy-duty applications, offering up to 800 horsepower and improved torque capabilities, marking a significant advancement in Allison's commitment to delivering high-performance solutions for the mining industry.

Caterpillar's Q4 Performance: Caterpillar reported Q4 revenue of $16.2 billion, missing estimates, while earnings exceeded expectations at $5.14 per share. The company anticipates lower sales and profitability in 2025 due to soft demand and reduced dealer inventory levels.

Market Reaction and Stock Valuation: Following the earnings report, CAT stock fell by 5%, reflecting investor concerns about its outlook. Despite consistent annual returns over the past four years, analysts suggest that the stock is currently fully valued at $375, trading at a P/E ratio lower than its historical average.

Financial Results Conference Call: Allison Transmission Holdings Inc. will hold a conference call on February 11, 2025, at 5:00 p.m. EST to discuss its fourth quarter and full year 2024 financial results, with a news release issued post-market.

Company Overview: Allison Transmission is a leading manufacturer of propulsion solutions for commercial and defense vehicles, with a global presence in over 150 countries and multiple manufacturing facilities, including those in the USA, Hungary, and India.

Launch of New Transmission: Allison Transmission introduced the 6000 Series™ transmission for wide body dump trucks at Bauma CHINA 2024, designed for high performance and operational efficiency in demanding conditions.

Strategic Growth Initiative: The launch reflects Allison's commitment to expanding its market share in off-highway applications outside North America, supported by partnerships with OEMs and extensive field testing.

Zacks Rank Overview: The Zacks Rank is a proprietary stock-rating model that helps investors build successful portfolios by utilizing earnings estimate revisions, focusing on four main factors: Agreement, Magnitude, Upside, and Surprise. Stocks are ranked from "Strong Buy" to "Strong Sell," with a strong historical performance of outperforming the market.

Allison Transmission Holdings, Inc.: Allison Transmission, a leading manufacturer of automatic transmissions, has received a #1 (Strong Buy) ranking due to positive earnings estimate revisions and strong market momentum, making it a recommended stock for investors looking for growth opportunities.

Honda's Financial Penalty: American Honda Finance Corp. has been fined $12.8 million by the CFPB for inaccurately reporting customer credit information, affecting many Honda and Acura customers during the pandemic, leading to a compensation of $10.3 million for affected individuals.

Future Sales and Growth Plans: Honda aims to sell one million hybrids in 2023 and plans to transition to 100% electric vehicle sales by 2040, while facing challenges in its Power Products segment due to declining revenues and high R&D expenses.