Here’s What Lifted Allison Transmission Holdings (ALSN) in Q4 #CanadaFinance

The London Company, an investment management company, released “The London Company Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During 4Q, U.S. equities rose, with most major indices showing positive gains. The portfolio returned 1.8% (-1.8% net) during the quarter compared to a 0.6% increase for the Russell Midcap Index. Both stock selection and sector exposure were headwinds to relative performance of the strategy in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, The London Company Mid Cap Strategy emphasized stocks such as Allison Transmission Holdings, Inc. (NYSE:ALSN). Allison Transmission Holdings, Inc. (NYSE:ALSN) designs, builds, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles, U.S. defense vehicles, and electrified propulsion systems globally. The one-month return of Allison Transmission Holdings, Inc. (NYSE:ALSN) was -13.92%, and its shares gained 31.92% of their value over the last 52 weeks. On February 25, 2025, Allison Transmission Holdings, Inc. (NYSE:ALSN) stock closed at $99.40 per share with a market capitalization of $8.501 billion.

The London Company Mid Cap Strategy stated the following regarding Allison Transmission Holdings, Inc. (NYSE:ALSN) in its Q4 2024 investor letter:

“Allison Transmission Holdings, Inc. (NYSE:ALSN) – ALSN continues to fire on all cylinders as 3Q24 results were strong. Demand remains robust, especially in their North American on-highway business. Strong infrastructure spending is also helping drive demand. Additionally, growing geopolitical tensions are fueling demand for ALSN’s defense business, which is now selling more to allied militaries. ALSN also continues to price for value, which has been driving consistent margin expansion. Our conviction in the stock reflects its wide competitive moat and strong management team.”

A carpenter installing an aluminum die cast component in the engine of a commercial vehicle.

Allison Transmission Holdings, Inc. (NYSE:ALSN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Allison Transmission Holdings, Inc. (NYSE:ALSN) at the end of the fourth quarter compared to 31 in the third quarter. While we acknowledge the potential of Allison Transmission Holdings, Inc. (NYSE:ALSN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Story Continues