We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allegheny Inks Long-term Agreement With GE Aviation
Read MoreHide Full Article
Allegheny Technologies Incorporated (ATI - Free Report) recently announced that it has landed an agreement with GE Aviation — a unit of General Electric (GE - Free Report) — to supply iso-thermal and hot-die forgings. Notably, iso-thermal and hot-die forgings are used to make commercial jet engines.
These multi-year agreements are expected to start in January 2021. Allegheny expects sales over the lifetime of these agreements to total roughly $2.5 billion, averaging more than $300 million a year.
Per management, these agreements reflect GE Aviation’s reliance on Allegheny to supply its production lines with the highest quality materials and components on time.
Moreover, Allegheny’s unique process capabilities and expertise in deep materials science enables it to partner with its customers to develop and manufacture the components as well as materials that enable the more fuel-efficient jet engines of today.
Shares of Allegheny have declined 7.7% in the past year against the industry’s 11.4% growth.
The company expects backlogs for single-aisle platforms to remain strong in the High Performance Materials & Components (HPMC) unit. However, it expects uneven order patterns along with inventory management actions by customers to affect shipments in fourth-quarter 2019. This is expected to partly offset the benefits from Allegheny’s larger share of high-value commercial jet engine material and components.
In the Flat-Rolled Products (FRP) unit, the company expects consistent profitability for the fourth quarter on sustained strength in high-value products in the United States as well as the STAL joint venture. Also, favorable impacts of higher nickel prices on raw material surcharge values are expected to drive the segment.
Allegheny Technologies Incorporated Price and Consensus
General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have gained 55% in the past year.
Agnico Eagle has an estimated earnings growth rate of 167.9% for the current year. Its shares have surged 54.5% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Allegheny Inks Long-term Agreement With GE Aviation
Allegheny Technologies Incorporated (ATI - Free Report) recently announced that it has landed an agreement with GE Aviation — a unit of General Electric (GE - Free Report) — to supply iso-thermal and hot-die forgings. Notably, iso-thermal and hot-die forgings are used to make commercial jet engines.
These multi-year agreements are expected to start in January 2021. Allegheny expects sales over the lifetime of these agreements to total roughly $2.5 billion, averaging more than $300 million a year.
Per management, these agreements reflect GE Aviation’s reliance on Allegheny to supply its production lines with the highest quality materials and components on time.
Moreover, Allegheny’s unique process capabilities and expertise in deep materials science enables it to partner with its customers to develop and manufacture the components as well as materials that enable the more fuel-efficient jet engines of today.
Shares of Allegheny have declined 7.7% in the past year against the industry’s 11.4% growth.
The company expects backlogs for single-aisle platforms to remain strong in the High Performance Materials & Components (HPMC) unit. However, it expects uneven order patterns along with inventory management actions by customers to affect shipments in fourth-quarter 2019. This is expected to partly offset the benefits from Allegheny’s larger share of high-value commercial jet engine material and components.
In the Flat-Rolled Products (FRP) unit, the company expects consistent profitability for the fourth quarter on sustained strength in high-value products in the United States as well as the STAL joint venture. Also, favorable impacts of higher nickel prices on raw material surcharge values are expected to drive the segment.
Allegheny Technologies Incorporated Price and Consensus
Allegheny Technologies Incorporated price-consensus-chart | Allegheny Technologies Incorporated Quote
Zacks Rank & Stocks to Consider
Allegheny currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are General Moly, Inc and Agnico Eagle Mines Limited (AEM - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The company’s shares have gained 55% in the past year.
Agnico Eagle has an estimated earnings growth rate of 167.9% for the current year. Its shares have surged 54.5% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>