ATI (ATI) closed the most recent trading day at $109.76, moving +1.73% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.38%.
Shares of the maker of steel and specialty metals have appreciated by 9.96% over the course of the past month, outperforming the Aerospace sector's gain of 0.55%, and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of ATI in its upcoming release. It is anticipated that the company will report an EPS of $0.89, marking a 12.66% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 1.79% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.2 per share and revenue of $4.6 billion, which would represent changes of +30.08% and +5.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for ATI. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.5% upward. As of now, ATI holds a Zacks Rank of #2 (Buy).
Digging into valuation, ATI currently has a Forward P/E ratio of 33.74. This valuation marks a discount compared to its industry average Forward P/E of 34.2.
It is also worth noting that ATI currently has a PEG ratio of 1.37. 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. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.27 at the close of the market yesterday.
The Aerospace - Defense Equipment industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 41% of over 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.
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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