A rectangle pattern has formed in the chart of Allison Transmission Holdings Inc. (NYSE:ALSN). When the stock breaks the resistance or support level, a strong move is expected.Allison Transmission Holdings Inc. (ALSN) is the world's largest manufacturer of fully automatic transmissions for commercial vehicles, which serve as fuel-saving alternatives to less expensive manual and automated manual transmissions. It supplies its products to several end markets, including on- and off-highway equipment and military vehicles.
The company has raised guidance for 2021 due to improving demand in global On-Highway and Service Parts, and Support Equipment end markets. Plus, price increases on select products should also aid growth.
ALSN’s current ratio of 2.0 indicates that the company has more than enough liquidity to handle short-term obligations. Management is also quite efficient as the firm sports a return on equity of 36.7%. While both earnings and sales are down year over year, both are expected to soar in the current quarter.