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Allegheny Technologies (ATI) Stock Sinks As Market Gains: Here's Why

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Allegheny Technologies (ATI - Free Report) closed the most recent trading day at $65.59, moving -0.56% from the previous trading session. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.08%.

The the stock of maker of steel and specialty metals has risen by 9.44% in the past month, leading the Basic Materials sector's gain of 5% and the S&P 500's gain of 1.21%.

The investment community will be closely monitoring the performance of Allegheny Technologies in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. On that day, Allegheny Technologies is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 20%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.13 billion, indicating a 10.17% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.48 per share and revenue of $4.48 billion, which would represent changes of -3.13% and +7.32%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Allegheny Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Allegheny Technologies holds a Zacks Rank of #3 (Hold).

In terms of valuation, Allegheny Technologies is currently trading at a Forward P/E ratio of 26.62. Its industry sports an average Forward P/E of 14.62, so one might conclude that Allegheny Technologies is trading at a premium comparatively.

It is also worth noting that ATI currently has a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Steel - Speciality industry was having an average PEG ratio of 0.96.

The Steel - Speciality industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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