ATI (ATI) closed the most recent trading day at $79.87, moving -1.07% from the previous trading session. This change lagged the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 0.7%.
The maker of steel and specialty metals's shares have seen an increase of 9.52% over the last month, surpassing the Aerospace sector's gain of 4.93% and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on 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. Simultaneously, our latest consensus estimate expects the revenue to be $1.13 billion, showing a 7.79% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.06 per share and a revenue of $4.62 billion, signifying shifts of +24.39% and +5.84%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for ATI. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ATI currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ATI currently has a Forward P/E ratio of 26.42. Its industry sports an average Forward P/E of 35.93, so one might conclude that ATI is trading at a discount comparatively.
We can additionally observe that ATI currently boasts a PEG ratio of 1.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Aerospace - Defense Equipment industry was having an average PEG ratio of 2.32.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
