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Is Allegheny Technologies (ATI) Stock Outpacing Its Basic Materials Peers This Year?

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Investors focused on the Basic Materials space have likely heard of Allegheny Technologies (ATI - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of ATI and the rest of the Basic Materials group's stocks.

Allegheny Technologies is one of 240 companies in the Basic Materials group. The Basic Materials group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ATI is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for ATI's full-year earnings has moved 8.16% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ATI has returned about 10.85% since the start of the calendar year. At the same time, Basic Materials stocks have lost an average of 3.85%. This shows that Allegheny Technologies is outperforming its peers so far this year.

Breaking things down more, ATI is a member of the Steel - Speciality industry, which includes 4 individual companies and currently sits at #111 in the Zacks Industry Rank. On average, stocks in this group have gained 11.82% this year, meaning that ATI is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Basic Materials stocks should continue to pay close attention to ATI as it looks to continue its solid performance.


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