Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

6. Allison Transmission Holdings, Inc. (NYSE:ALSN)

Number of Hedge Fund Holders: 31

While Cramer called Allison Transmission Holdings, Inc. (NYSE:ALSN) a storied company, he suggested going for GM instead.

“Storied company, terrific. It does great but let me tell you something, at $117 with the 14 times earnings, I actually would prefer you to swap out right now and go to be with Mary Barra at GM. Cheaper and will be just as good.”

Allison Transmission (NYSE:ALSN) designs and manufactures automatic transmissions and electrified propulsion systems for commercial and defense vehicles, offering solutions for various applications and providing remanufactured transmissions, parts, and services. It has seen strong demand for its on-highway products, especially the 3000 and 4000 Series fully automatic transmissions.

This demand is largely driven by continued infrastructure spending in North America, which has fueled unprecedented demand for Class 8 vocational vehicles. To address this demand, the company has invested in expanding its supply chain and improving manufacturing efficiency to increase capacity and throughput. In October, the company announced plans for further long-term growth, particularly through investments in its Chennai, India facility.

This facility will initially focus on producing parts for the 1000 and 2000 Series on-highway products but is expected to expand significantly to support the production of the 3000 and 4000 Series as well. Allison Transmission’s (NYSE:ALSN) investment in Chennai will nearly double the manufacturing footprint, with over $100 million planned for the expansion over the next few years, half of which is anticipated to occur in 2025.

As the facility ramps up operations, it is expected to reach full production by 2027, supporting the company’s long-term growth objectives and expanding its global production capabilities to meet regional demand outside North America.