Argus Adjusts Cummins' Price Target to $420 From $328

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allison Transmission (ALSN) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

Allison Transmission is a member of our Auto-Tires-Trucks group, which includes 102 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Allison Transmission is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ALSN's full-year earnings has moved 3.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that ALSN has returned about 101.7% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 1.5%. This means that Allison Transmission is outperforming the sector as a whole this year.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Cummins (CMI). The stock has returned 48.6% year-to-date.

Over the past three months, Cummins' consensus EPS estimate for the current year has increased 3.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allison Transmission belongs to the Automotive - Original Equipment industry, a group that includes 51 individual stocks and currently sits at #176 in the Zacks Industry Rank. On average, stocks in this group have lost 23.5% this year, meaning that ALSN is performing better in terms of year-to-date returns.

On the other hand, Cummins belongs to the Automotive - Internal Combustion Engines industry. This 1-stock industry is currently ranked #2. The industry has moved +48.6% year to date.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Allison Transmission and Cummins. These stocks will be looking to continue their solid performance.

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