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ATI (ATI) Surpasses Market Returns: Some Facts Worth Knowing

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ATI (ATI - Free Report) ended the recent trading session at $76.39, demonstrating a +2.02% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.

Shares of the maker of steel and specialty metals have depreciated by 0.79% over the course of the past month, underperforming the Aerospace sector's loss of 0.69%, and the S&P 500's gain of 2.09%.

The investment community will be closely monitoring the performance of ATI in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.75, marking a 25% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.13 billion, up 7.79% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.06 per share and revenue of $4.62 billion. These totals would mark changes of +24.39% and +5.84%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ATI. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% increase. ATI is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ATI is presently being traded at a Forward P/E ratio of 24.51. This expresses a discount compared to the average Forward P/E of 35.18 of its industry.

It is also worth noting that ATI currently has a PEG ratio of 1.02. 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. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.25 as trading concluded yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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