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Allegheny Technologies (ATI) Outpaces Stock Market Gains: What You Should Know

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Allegheny Technologies (ATI - Free Report) closed at $22.42 in the latest trading session, marking a +1.59% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the maker of steel and specialty metals had lost 15.57% over the past month, lagging the Basic Materials sector's loss of 6.58% and the S&P 500's loss of 8.32% in that time.

Investors will be hoping for strength from Allegheny Technologies as it approaches its next earnings release. In that report, analysts expect Allegheny Technologies to post earnings of $0.38 per share. This would mark year-over-year growth of 416.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $831 million, up 34.86% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.47 per share and revenue of $3.51 billion. These totals would mark changes of +1030.77% and +25.46%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Allegheny Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Allegheny Technologies currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Allegheny Technologies currently has a Forward P/E ratio of 15.01. This represents a premium compared to its industry's average Forward P/E of 11.75.

The Steel - Speciality industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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