Transportation Stocks Keep the Wheels Rolling in 2024
It looks like the transportation segment of the market is still cruising strong. After October 2023, the Dow’s transportation average has surged more than 15%—a pretty solid road trip for investors.
Spotlight: Allison Transmission (NYSE: ALSN)
Financial wizard Saqib Iqbal from Trading.Biz is betting on Allison Transmission to shine in Q1 2024. He’s saying the auto giant’s stock is poised for a 41% gain.
- Premium quality – Allison is a frontrunner in commercial auto transmissions across North America.
- Proven strengths – they’re known for durability, reliability, and fuel‑savvy gearboxes.
- In 2023, the company smashed records: $3.035 billion in revenue (10% YoY boost), a 13% jump in on‑highway sales, and an 18% lift in service parts.
- Earnings per share hit a peak of $7.40—up 34% from the prior year.
- Free cash flow climbed to $186 million.
Why Saqib thinks this is a sweet deal
He found the stock’s intrinsic value is about 29% below its current price. Combine that undervaluation with the company’s growth, and the upside could be around 41%.
“The company managed to buy back half its shares while the market value dipped—most likely because of worries about electric car adoption,” Saqib explains.
How the math works out
At the current price of $70.57, a $1,000 investment buys you roughly 14.28 shares. Because the stock is underpriced by 29%, the “real” price would be about $99.74. That translates to an estimated capital gain of $412.67.
On top of that, a dividend of $0.23 per share adds another $3.28—totalling a 41.59% return.
Breakdown:
- Potential gains = (Final price – Initial price) × Shares
- Dividend earnings = Dividend per share × Shares
- Total return = potential gains + dividend earnings
So, if you’re looking for a short‑term thrill ride, Saqib’s suggestion is that Allison Transmission is a good bet for 2024’s auto market.
NYSE: ALSN stock technical analysis
Stock Snapshot
Since the calendar flipped in 2024, the shares have been on a wild joyride, climbing more than 23% higher than when we started. The price is happily cruising well above the 200‑day moving average and has finally broken the stubborn resistance line that held it at $60.58 back on January 26. It’s now smashing an all‑time high!
Why you might want to watch the dips
- Strong Momentum: The stock’s been consistently pulling up past its long‑term trend line.
- Resistance is Out: After that January pick‑up, the price has slid well above the old ceiling.
- All‑Time High: It’s currently at the peak of its climb, so any retracts are prime buying spots.
Keep your eyes peeled! A quick slide back could mean a sweet entry point while the upward trend stays driven.
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