ZACKS·2026-02-09 23:00Core Insights - Allison Transmission Holdings (ALSN) and Ford Motor (F) are highlighted as top auto stocks with strong buy ratings as they approach Q4 results [1][2] Group 1: Allison Transmission Holdings (ALSN) - Allison's core business, a key supplier of transmissions for commercial and defense vehicles, has been performing well, supported by strategic acquisitions that enhance investor confidence [3] - The recent acquisition of Dana Incorporated's Off-Highway Drive & Motion Systems business has created a global multi-billion-dollar revenue enterprise across 29 countries [3] - ALSN has experienced a remarkable increase of over 150% in stock price over the last three years, significantly outperforming broader indexes and the Zacks Auto, Tires and Trucks sectors, which rose by 49% [4] - Despite a projected 22% year-over-year decline in Q4 EPS to $1.56, the Most Accurate estimate suggests a potential earnings beat with a forecast of $1.68, indicating a 7.69% upside [6][9] - Annual sales and EPS are expected to rebound significantly in FY26, reaching new peaks of $5.67 billion and $9.68 per share, respectively [7] Group 2: Ford Motor (F) - Ford is positioned as an intriguing value stock, with expectations to surpass Q4 2025 EPS estimates of $0.17, as the Most Accurate estimate is at $0.19 [9][11] - Total vehicle sales for Ford increased by 6% in 2025 to 2.2 million, marking its best performance since 2019 [10] - To mitigate tariff impacts, Ford launched a "From America, For America" campaign, allowing public purchases at employee discount prices while cutting costs on future vehicle models [12] - Ford's stock has rebounded nearly 50% over the past year, trading around $13, and has shown positive gains of 7% over the last three years [12] - The stock trades at less than 10X forward earnings, with a promising rebound in FY26 EPS expected at $1.53, supporting a 4.35% annual dividend yield while maintaining a payout ratio under 50% [13][14]