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Allison Transmission Holdings Inc (ALSN) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock shows some positive technical indicators, the lack of recent positive news, declining financial performance, and mixed analyst ratings suggest that this is not an optimal entry point. The investor should consider waiting for more favorable conditions or stronger positive catalysts.
The stock's moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the RSI is neutral at 71.296. However, the MACD histogram is negative (-0.0676) and expanding downward, signaling potential bearish momentum. Key resistance levels are at 118.718 and 120.436, while support levels are at 113.155 and 111.437.

The stock has a bullish moving average trend, and the upcoming earnings report on February 23, 2026, could provide a potential catalyst if results exceed expectations.
The company's financial performance in Q3 2025 showed significant declines in revenue (-15.90% YoY), net income (-31.50% YoY), and EPS (-28.19% YoY). Additionally, there is no recent positive news or significant trading trends from insiders or hedge funds.
In Q3 2025, revenue dropped to $693 million (-15.90% YoY), net income fell to $137 million (-31.50% YoY), and EPS declined to 1.63 (-28.19% YoY). Gross margin also slightly decreased to 47.47% (-1.23% YoY).
Analysts have mixed views. Wells Fargo raised the price target to $98 but maintained an Equal Weight rating. Citi raised its target to $105 but kept a Neutral rating. Raymond James upgraded the stock to Strong Buy with a target of $110, citing the Dana acquisition as a positive development. However, the overall sentiment remains cautious.