Allison Transmission Shares Higher on Institutional Power

Allison Transmission makes propulsion systems for commercial and defense vehicles and is the largest manufacturer of medium- and heavy-duty fully automatic transmissions in the world. ALSN’s fourth-quarter fiscal 2025 report showed an adjusted EBITDA margin of 36% (rose over 200 basis points), defense revenue of $73 million (a 7% gain), and 2026 net income guidance of up to $750 million.

It’s no wonder ALSN shares are up 25% this year – and they could rise more. MoneyFlows data shows how Big Money investors are betting heavily on the forward picture of the stock.

Inflows Drive Allison Transmission

Institutional volumes reveal plenty. In the last few months, ALSN has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ALSN shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Allison Transmission.

Allison Transmission Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ALSN has had strong profits and earnings growth:

• Profit margin (+20.7%)
• 3-year EPS growth rate (+11.9%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +17.7%.

Now it makes sense why the stock has been powering to new heights. ALSN has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Allison Transmission has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Outlier 20 report 14 times since 2018, including just recently. Since the first outlier inflow, ALSN is up 162%. The blue bar below shows when ALSN was a top pick in the last four years…Big Money remains a buyer:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Allison Transmission Price Prediction

The ALSN rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ALSN at the time of publication.

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