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

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In the latest trading session, Allegheny Technologies (ATI - Free Report) closed at $50.96, marking a -1.79% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.49%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 1.22%.

The maker of steel and specialty metals's shares have seen a decrease of 16.12% over the last month, not keeping up with the Basic Materials sector's loss of 2.81% and the S&P 500's loss of 8.15%.

Analysts and investors alike will be keeping a close eye on the performance of Allegheny Technologies in its upcoming earnings disclosure. The company is expected to report EPS of $0.58, up 20.83% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.06 billion, showing a 1.51% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.89 per share and revenue of $4.57 billion, indicating changes of +17.48% and +4.68%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Allegheny Technologies. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Allegheny Technologies holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Allegheny Technologies has a Forward P/E ratio of 17.95 right now. Its industry sports an average Forward P/E of 13.82, so one might conclude that Allegheny Technologies is trading at a premium comparatively.

Meanwhile, ATI's PEG ratio is currently 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Steel - Speciality stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Steel - Speciality industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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