In the latest close session, ATI (ATI) was up +2.61% at $79.47. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.07%.
The maker of steel and specialty metals's stock has climbed by 6.74% in the past month, exceeding the Aerospace sector's gain of 2.92% and the S&P 500's gain of 2.71%.
Investors will be eagerly watching for the performance of ATI in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.75, reflecting a 25% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.13 billion, up 7.79% from the prior-year quarter.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ATI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. ATI is currently a Zacks Rank #3 (Hold).
Looking at valuation, ATI is presently trading at a Forward P/E ratio of 25.35. This valuation marks a discount compared to its industry average Forward P/E of 35.56.
It is also worth noting that ATI currently has a PEG ratio of 1.06. 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 currently had an average PEG ratio of 2.28 as of yesterday's close.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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