ATI (ATI) closed the most recent trading day at $79.26, moving -4.29% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.48%.
Heading into today, shares of the maker of steel and specialty metals had gained 6.8% over the past month, outpacing the Aerospace sector's gain of 2.44% and the S&P 500's gain of 2.87%.
Analysts and investors alike will be keeping a close eye on the performance of ATI in its upcoming earnings disclosure. In that report, analysts expect ATI to post earnings of $0.75 per share. This would mark year-over-year growth of 25%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.13 billion, indicating a 7.79% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.06 per share and revenue of $4.62 billion, indicating changes of +24.39% and +5.84%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for ATI. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ATI is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ATI currently has a Forward P/E ratio of 27.1. This represents a discount compared to its industry average Forward P/E of 35.13.
Investors should also note that ATI has a PEG ratio of 1.13 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.52 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 61, positioning it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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