For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Allegheny Technologies (ATI) ten years ago? It may not have been easy to hold on to ATI for all that time, but if you did, how much would your investment be worth today?
Allegheny Technologies' Business In-Depth
With that in mind, let's take a look at Allegheny Technologies' main business drivers.
Pittsburgh, PA-based ATI Inc. is a diversified specialty materials producer. The company was created in November 1999 when Allegheny Teledyne spun out Teledyne Technologies and Water Pik Technologies into standalone companies.
ATI originally had three main business segments: Flat-Rolled Products (FRP), High Performance Metals and Engineered Products. However, the company, in October 2013, announced the restructuring of its Engineered Products segment.
The restructuring includes the integration of the specialty steel forgings business into ATI Ladish’s forgings operations in the High-Performance Metals and Components division and the integration of the precision titanium and specialty alloy flat-rolled finishing business into ATI Allegheny Ludlum’s specialty plate business in the Flat-Rolled Products segment. Other businesses that comprised the Engineered Products division have been classified as discontinued operations, including the tungsten materials business and the iron castings and fabricated components businesses.
ATI completed the sale of its tungsten materials business to Latrobe, PA-based wear-resistant products company Kennametal Inc. for $605 million.
The company started operating under two revised business segments: High-Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S), effective Jan. 1, 2020.
The AA&S segment (46% of 2024 sales) is focused on delivering high-value flat products, mainly to the energy, aerospace, and defense end-markets that account for around 50% of its revenues. It combines the Specialty Alloys & Components business with the company’s former FRP business segment that included the FRP business, the 60%-owned STAL joint venture and the Uniti and A&T Stainless 50%-owned joint ventures.
The HPMC segment (54%) consists of specialty materials and forged products businesses and ATI Europe distribution operations. The segment is primarily focused on maximizing aero-engine materials and components growth. Nearly 80% of its revenues are derived from the aerospace and defense markets.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Allegheny Technologies, ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2015 would be worth $3,176.03, or a gain of 217.60%, as of July 14, 2025, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 201.44% and the price of gold went up 179.16% over the same time frame.
Analysts are anticipating more upside for ATI.
Earnings estimates of ATI for the second quarter have been stable over the past month. The company is benefiting from strong momentum in the aerospace and defense sectors. ATI is actively implementing measures to ensure its sustainability amid a challenging economic landscape. The company is in the process of finishing several self-funded capital projects to help augment organic growth and its cost structure. However, weak demand in the industrial markets is a concern, exacerbated by the impact of the announced tariffs. The company is highly dependent on the build rates of Airbus and Boeing, making its 2025 guidance vulnerable if supply chain issues persist. Additionally, lower cash levels raise liquidity concerns, which may impact the company's ability to meet its debt obligations.
Over the past four weeks, shares have rallied 5.11%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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