In the latest close session, Allegheny Technologies (ATI) was down 2.98% at $82.18. The stock's performance was behind the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.13%.
Shares of the maker of steel and specialty metals witnessed a gain of 11.21% over the previous month, beating the performance of the Basic Materials sector with its gain of 3.05%, and the S&P 500's gain of 0.6%.
Analysts and investors alike will be keeping a close eye on the performance of Allegheny Technologies in its upcoming earnings disclosure. On that day, Allegheny Technologies is projected to report earnings of $0.7 per share, which would represent year-over-year growth of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 3.76% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.01 per share and a revenue of $4.63 billion, representing changes of +22.36% and +6.15%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Allegheny Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.54% increase. Allegheny Technologies is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Allegheny Technologies is currently trading at a Forward P/E ratio of 28.18. Its industry sports an average Forward P/E of 17.63, so one might conclude that Allegheny Technologies is trading at a premium comparatively.
We can also see that ATI currently has a PEG ratio of 1.19. 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 currently had an average PEG ratio of 1.18 as of yesterday's close.
The Steel - Speciality industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ATI Inc. (ATI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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