In the latest close session, Allegheny Technologies (ATI) was down 1.34% at $82.99. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.31%.
Coming into today, shares of the maker of steel and specialty metals had gained 5.85% in the past month. In that same time, the Basic Materials sector gained 2.56%, while the S&P 500 gained 5.05%.
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%. At the same time, our most recent consensus estimate is projecting a revenue of $1.14 billion, reflecting a 3.76% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $4.63 billion. These totals would mark changes of +22.36% and +6.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Allegheny Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Allegheny Technologies is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Allegheny Technologies's current valuation metrics, including its Forward P/E ratio of 27.99. This indicates a premium in contrast to its industry's Forward P/E of 18.02.
We can additionally observe that ATI currently boasts a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Steel - Speciality industry stood at 1.18 at the close of the market yesterday.
The Steel - Speciality industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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