Back to top

Image: Bigstock

Allegheny Technologies (ATI) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

In the latest close session, Allegheny Technologies (ATI - Free Report) was down 2.84% at $83.89. This move lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.

The maker of steel and specialty metals's shares have seen an increase of 6.9% over the last month, surpassing the Basic Materials sector's gain of 3.56% and the S&P 500's gain of 5.17%.

Market participants will be closely following the financial results of Allegheny Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be $0.7, reflecting a 16.67% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.14 billion, indicating a 3.76% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $4.63 billion. These totals would mark changes of +22.36% and +6.15%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Allegheny Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Allegheny Technologies presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Allegheny Technologies is presently being traded at a Forward P/E ratio of 28.73. This indicates a premium in contrast to its industry's Forward P/E of 19.02.

It's also important to note that ATI currently trades at a PEG ratio of 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Speciality was holding an average PEG ratio of 1.21 at yesterday's closing price.

The Steel - Speciality industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ATI Inc. (ATI) - free report >>

Published in