While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that t ...

Core Insights - Allison Transmission Holdings, Inc. (ALSN) has completed the acquisition of Dana Inc.'s Off-Highway Drive & Motion Systems business for approximately $2.7 billion, creating a combined entity with revenues of $5.5 billion operating in 29 countries [1][11] Group 1: Acquisition and Business Structure - The acquisition enhances ALSN's growth prospects and strengthens its position as a global provider of commercial duty mobility, with a portfolio of high-quality and reliable products [2] - The combined company will be headquartered in Indianapolis and will operate under the ALSN brand, consisting of two major business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems [2] Group 2: Market Opportunities and Growth Drivers - ALSN is well-positioned to benefit from rising global defense budgets, with defense sales increasing by 47% year over year in Q3 2025, supported by expanding programs in the U.S. and abroad [4] - The 3040MX platform is identified as a key growth driver, with contracts secured for India's Future Infantry Combat Vehicle program and Poland's Infantry Fighting Vehicle program, representing significant long-term opportunities [5][10] - The company is expanding its presence in India through a Memorandum of Understanding with Armoured Vehicles Nigam Limited to establish a Maintenance, Repair and Overhaul center [6] Group 3: International Expansion and Technology - International On-Highway remains a significant untapped opportunity for ALSN, with low penetration and substantial growth potential across various regions [7] - Recent deployments in Brazil indicate ALSN's growing traction outside North America, and the Dana acquisition will broaden its global footprint and customer access [8] - ALSN's focus on advanced technology and innovation, particularly in its eGen Power portfolio, is positively received by customers, with notable contracts reinforcing the value of its fuel-saving features [9][12] Group 4: Financial Performance and Shareholder Returns - ALSN has raised its quarterly dividend by 8%, marking its sixth consecutive annual increase, and has authorized $1 billion for stock repurchases, reflecting strong investor confidence [12] - Since 2019, the quarterly dividend has increased by over 80%, with more than $283 million of common stock repurchased in the first nine months of 2025 [12]

Company Overview - Casella Waste is a Vermont-based waste management company founded in 1975, growing from a one-truck operation to a $6.37 billion enterprise over fifty years, specializing in resource renewal and sustainability through recycling services [2] - The company operates in nine states, providing services such as trash collection, organics disposal, compressed natural gas collection, landfill operations, and specialized waste management [1] Financial Performance - In Q3, Casella reported revenue of $485.4 million, reflecting an 18% year-over-year increase and exceeding forecasts by $9 million [7] - The non-GAAP EPS for Q3 was 42 cents, up 2 cents from the previous year and beating expectations by 10 cents [7] Analyst Insights - Raymond James analyst Patrick Brown views the post-Q2 stock pullback of Casella as overdone, expecting a rebound as the company completes its systems integration and realizes synergies from recent acquisitions [8] - Brown has assigned a Strong Buy rating to Casella with a price target of $120, indicating a potential upside of 22.5% [8] Market Context - The current bull market, which began in fall 2022, has seen the S&P 500 advance approximately 16.5% in 2025, with the tech-heavy Nasdaq rising about 20.5% [5] - The macroeconomic environment is characterized by resilient growth, fiscal tailwinds, and robust corporate earnings, suggesting continued support for the bull market [4] Competitive Landscape - Casella's versatility allows it to serve a wide range of industries, including agriculture, retail, construction, and municipalities, highlighting its adaptability in waste management [6]

Core Insights - The acquisition of Dana's Off-Highway Drive & Motion Systems business for approximately $2.7 billion positions Allison Transmission to form a global enterprise with projected revenues of $5.5 billion, enhancing its capabilities in high-performance mobility and work solutions across various sectors [1][2] Company Overview - Allison Transmission Holdings, Inc. is a global leader in high-performance mobility and work solutions, operating through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems [4] - The company has a strong presence in critical sectors such as infrastructure, energy, agriculture, construction, and national security, with operations in over 150 countries [4] Leadership and Structure - The combined company will be headquartered in Indianapolis, Indiana, and will be led by David Graziosi as Chair, President, and CEO [2] - The business units will be managed by Fred Bohley and Craig Price, ensuring a global operational structure that leverages local insights [2] Strategic Goals - The merger aims to create a broader portfolio of high-quality products and expand market reach, enabling the company to capitalize on global megatrends in the industrial sector [2] - The integration of Dana's business is expected to enhance Allison's financial performance through both organic and inorganic growth strategies [2]

Core Viewpoint - Dana Incorporated has completed the sale of its Off-Highway business to Allison Transmission Holdings for $2.7 billion, marking a significant step in its transformation strategy [1][2]. Financial Impact - The transaction is valued at 7.5 times the expected adjusted EBITDA for the Off-Highway business in 2025 [1]. - Proceeds from the sale will allow Dana to reduce its debt by approximately $2 billion, achieving a target net leverage of 1x over the business cycle [2]. - The company plans to return $1 billion to shareholders through 2027, with about $650 million already returned since the announcement, an increase of $50 million compared to the previous target [2]. Strategic Focus - Following the divestiture, Dana aims to become a more focused company, concentrating on serving light- and commercial-vehicle customers with both traditional and electrified systems [2]. - The divestiture, along with a successful cost-reduction plan, is expected to strengthen the company's balance sheet, improve margins, and reduce complexity, positioning Dana for accelerated innovation and growth in core markets [2]. Company Overview - Dana is a leader in designing and manufacturing propulsion and energy-management solutions for various mobility markets globally [8]. - The company reported sales of approximately $7.7 billion in 2024 and employs around 28,000 people across 22 countries [9]. - Dana has been recognized as one of the "World's Most Ethical Companies" for 2025 and as one of "America's Most Responsible Companies 2025" [9].

Group 1 - Citigroup Inc is analyzed for its market performance and investment opportunities [1] - Abercrombie & Fitch Company shows potential growth in retail sector amidst changing consumer preferences [1] - Barrick Mining Corp is evaluated for its operational efficiency and commodity price impacts [1] Group 2 - Allison Transmission Holdings Inc is discussed regarding its strategic initiatives and market positioning [1]

Core Insights - The article discusses a rotation thesis from Big Tech investments to cyclical value, energy, and high-quality stocks that focus on dividend income and growth [1]. Group 1: Investment Focus - The emphasis is on transitioning investment strategies towards sectors that offer dividend growth opportunities, particularly in cyclical and energy stocks [1][2]. - The analysis aims to provide actionable investment ideas that align with major economic developments in supply chains and commodities [2]. Group 2: Analyst Background - Leo Nelissen is identified as an analyst specializing in economic developments related to supply chains, infrastructure, and commodities, contributing to the iREIT®+HOYA Capital team [2].

"Allison transmissions are an ideal fit for the demanding conditions at MDO sites like Pakur in Jharkhand," said Amar Kanth Mishra, Head Technical of Shar Projects Private Limited. "They've consistently delivered the reliability and performance we need in these environments. With the addition of XCMG WBD trucks to our fleet, we're confident that Allison's technology will continue to support our growth and operational excellence across current and future projects." Allison's commitment to India's industrial ...

11 times earnings doesn't sound too expensive for Allison -- but just wait.Shares of truck transmission manufacturer Allison Transmission (ALSN +2.87%) jumped 3.3% through 1:15 p.m. ET Monday -- and you can thank Wall Street analyst Raymond James for that.RJ just upgraded Allison to "strong buy" with a $110 price target. RJ hearts AllisonRaymond James cited Allison's pending acquisition of Dana Incorporated's (DAN +0.91%) off-highway business for its upgrade, as TheFly.com reports.In June, Allison entered i ...

Core Viewpoint - Allison Transmission's recent earnings report showed a decline in both earnings per share and revenues, raising concerns about future performance as the stock has outperformed the S&P 500 by approximately 7% in the past month [1][2]. Financial Performance - Q3 2025 earnings were reported at $1.63 per share, missing the Zacks Consensus Estimate of $1.95 and representing a 28% year-over-year decline [3]. - Quarterly revenues totaled $693 million, down 16% from the previous year and below the Zacks Consensus Estimate of $756 million [3]. Segmental Performance - North America On-Highway net sales fell 28% year-over-year to $327 million, missing estimates [4]. - Outside North America On-Highway net sales decreased by 3% to $122 million, also missing estimates [4]. - Global Off-Highway net sales dropped to $7 million from $20 million year-over-year, missing estimates [5]. - Defense end market net sales increased by 47% to $78 million, exceeding estimates [6]. - Service Parts, Support Equipment & Other net sales fell 5% to $159 million, missing estimates [7]. Financial Position - Gross profit decreased to $329 million from $396 million year-over-year due to lower volumes and unfavorable material costs [8]. - Adjusted EBITDA was $256 million, down from $305 million a year ago [8]. - Cash and cash equivalents increased to $902 million as of September 30, 2025, from $781 million at the end of 2024 [9]. - Long-term debt remained unchanged at $2.39 billion [9]. 2025 Outlook - The full-year 2025 net sales outlook has been revised to between $2,975 million and $3,025 million, down from the previous estimate of $3,075-$3,175 million [11]. - Expected net income is now projected to be between $620 million and $650 million, revised from $640 million to $680 million [11]. - Adjusted EBITDA is now expected to be between $1,090 million and $1,125 million, down from the previous estimate [12]. - Adjusted free cash flow is projected to be between $600 million and $620 million, revised down from $620 million to $660 million [13]. Estimate Trends - There has been a downward trend in estimates, with a consensus estimate shift of -5.49% over the past month [14]. VGM Scores - Allison Transmission has a subpar Growth Score of D and a Momentum Score of F, but a strong Value Score of A, placing it in the top 20% for this investment strategy [15]. Industry Performance - Allison Transmission is part of the Zacks Automotive - Original Equipment industry, where Autoliv, Inc. reported a revenue increase of 5.9% year-over-year [17].