Allison Transmission Holdings, Inc. ALSN

Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Fidelity Investments, an investment management company, recently released its second-quarter 2026 investor letter for the “Fidelity Dividend Growth Fund”. The letter can be downloaded here. The Fidelity Dividend Growth Fund is a diversified large-cap equity strategy focused on capital appreciation through investments in large- and mid-cap stocks with strong dividend growth prospects. The fund returned […]

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies — as Jeff Bezos said, “Your margin is my opportunity”.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at heavy transportation equipment stocks, starting with Allison Transmission (NYSE:ALSN).

Even though Allison Transmission (currently trading at $125.25 per share) has gained 7.1% over the last six months, it has lagged the S&P 500’s 13.1% return during that period. This might have investors contemplating their next move.

Allison Transmission Holdings stock has quietly put up very strong multi year returns, and at around US$124.99 per share it still screens as undervalued on broader valuation checks. This raises the question of how much optimism is already reflected in the price after the latest upbeat revenue news. Over the past 5 years, Allison Transmission Holdings has delivered a total return of about 257.6%, which puts current investors in a very different position than those looking at the stock for the...

Allison Transmission’s second quarter saw a strong positive market response, with investors reacting favorably to robust sales growth and major contract wins in the defense sector. Management attributed the revenue surge to both the integration of the Off-Highway business unit and higher demand in key market segments, particularly defense and North America On-Highway. CEO David Graziosi highlighted new program awards with European defense customers and ongoing recovery in construction and mining

Allison Transmission Holdings Inc. (NYSE: ALSN), a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world, announced today that its Board of Directors has declared a cash dividend of $0.29 per share on the Company's common stock for the third quarter of 2026. Payment will be made on August 31, 2026, to stockholders of record at the close of business on August 21, 2026.

Allison Transmission (ALSN) delivered earnings and revenue surprises of +5.00% and +3.82%, respectively, for the quarter ended June 2026. Do the numbers hold clues to what lies ahead for the stock?

Transmission provider Allison Transmission (NYSE:ALSN) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 92.4% year on year to $1.57 billion. The company’s full-year revenue guidance of $5.9 billion at the midpoint came in 1.6% above analysts’ estimates. Its GAAP profit of $2.15 per share was 13% below analysts’ consensus estimates.