Allegheny Technologies (ATI) closed the latest trading day at $47.23, indicating a -0.84% change from the previous session's end. This change lagged the S&P 500's 0.17% loss on the day. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the maker of steel and specialty metals had lost 7.3% over the past month, lagging the Basic Materials sector's loss of 4.41% and the S&P 500's loss of 3.94% in that time.
The upcoming earnings release of Allegheny Technologies will be of great interest to investors. The company's earnings report is expected on May 1, 2025. The company is expected to report EPS of $0.58, up 20.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.06 billion, up 1.77% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.91 per share and revenue of $4.6 billion, indicating changes of +18.29% and +5.54%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Allegheny Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.52% upward. As of now, Allegheny Technologies holds a Zacks Rank of #2 (Buy).
In terms of valuation, Allegheny Technologies is presently being traded at a Forward P/E ratio of 16.4. Its industry sports an average Forward P/E of 12.29, so one might conclude that Allegheny Technologies is trading at a premium comparatively.
It is also worth noting that ATI currently has a PEG ratio of 0.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Steel - Speciality industry had an average PEG ratio of 0.76 as trading concluded yesterday.
The Steel - Speciality industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many 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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