For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Allegheny Technologies (ATI - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Allegheny Technologies is a member of the Basic Materials sector. This group includes 240 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ATI is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ATI's full-year earnings has moved 8.16% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ATI has moved about 9.69% on a year-to-date basis. Meanwhile, stocks in the Basic Materials group have lost about 3.78% on average. This means that Allegheny Technologies is performing better than its sector in terms of year-to-date returns.
Breaking things down more, ATI is a member of the Steel - Speciality industry, which includes 4 individual companies and currently sits at #105 in the Zacks Industry Rank. This group has gained an average of 10.74% so far this year, so ATI is slightly underperforming its industry in this area.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to ATI as it looks to continue its solid performance.