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Is Allegheny Technologies (ATI) Outperforming Other Basic Materials Stocks This Year?

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For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Allegheny Technologies (ATI - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Allegheny Technologies is one of 241 individual stocks in the Basic Materials sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ATI's full-year earnings has moved 48.5% 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 69.2% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 2.4% on a year-to-date basis. As we can see, Allegheny Technologies is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is Amerigo Resources (ARREF - Free Report) . The stock is up 18.5% year-to-date.

In Amerigo Resources' case, the consensus EPS estimate for the current year increased 13.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegheny Technologies belongs to the Steel - Speciality industry, a group that includes 4 individual stocks and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 37.8% so far this year, so ATI is performing better this group in terms of year-to-date returns.

Amerigo Resources, however, belongs to the Mining - Non Ferrous industry. Currently, this 11-stock industry is ranked #66. The industry has moved -21.9% so far this year.

Investors interested in the Basic Materials sector may want to keep a close eye on Allegheny Technologies and Amerigo Resources as they attempt to continue their solid performance.


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