Market Performance Overview
Allegheny Technologies (ATI) concluded the latest trading session at $63.84, experiencing a -1.3% decline from the previous day. This underperformance contrasted with the S&P 500’s marginal 0.19% loss, as the Dow edged up by 0.09%, while the technology-heavy Nasdaq slid by 0.36%.
Over the past month, the stock of this steel and specialty metals manufacturer has dipped by 0.71%, trailing the Basic Materials sector’s 2.2% gain and the S&P 500’s 2.06% increase.
Upcoming Earnings Report and Analyst Estimates
Investors eagerly await Allegheny Technologies’ upcoming earnings report, with a predicted EPS of $0.66, signifying a substantial 20% growth from the same quarter last year. The consensus estimate for revenue stands at $1.13 billion, reflecting a 10.17% rise from the previous year.
Current Zacks Consensus Estimates forecast full-year earnings at $2.48 per share and revenue of $4.48 billion, with expected year-over-year fluctuations of -3.13% and +7.32%, respectively.
Analyst Revisions and Zacks Rank Insights
The recent revisions in analyst estimates for Allegheny Technologies play a crucial role, indicating shifts in short-term business trends. Positive estimate revisions tell a promising tale for the company’s future outlook. The Zacks Rank, known for its record of superior performance, assigns ATI a current rank of #3 (Hold).
Remarkably, stocks ranked #1 (Strong Buy) have historically offered an annual return averaging +25% since 1988. In the last month, the Zacks Consensus EPS estimate rose by 0.51%.
Valuation Metrics and Industry Landscape
Investors should consider ATI’s current valuation metrics, including a Forward P/E ratio of 26.1, indicating a premium compared to the industry’s 19.83. The PEG ratio, currently at 1.58, incorporates the anticipated earnings growth rate, with the Steel – Speciality industry’s average PEG ratio standing at 1.1.
Belonging to the Basic Materials sector, the Steel – Speciality industry falls in the bottom 26% of all industries, with a Zacks Industry Rank of 188. Industries in the top 50% have been shown to outperform the lower half by a 2-to-1 margin.
Zacks Investment Research Insights
Stay informed about ATI’s performance by monitoring Zacks.com for real-time updates on the company’s position in the market.
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Disclosure: The opinions expressed in this article belong solely to the author and may not necessarily align with the views of Nasdaq, Inc.
