ATI Inc. Faces Challenges Amid Industry Slowdown

The Zacks Steel-Specialty Industry is currently positioned in the bottom 20% of nearly 250 Zacks industries. Consequently, ATI Inc ATI seems to be a stock that investors might want to avoid. Recently, as a diversified specialty metals producer, it could be wise to consider taking profits from ATI, which has seen a remarkable +20% increase this year. However, earnings estimate revisions have shifted downward significantly following the company’s disappointing Q3 results reported in late October.

Uncertainty Looms in Aerospace Sector

While ATI expresses confidence in the long-term demand for its products, the company is currently navigating uncertainty within its aerospace customer base. This turmoil stems from what has been described as a slowdown in industry-wide aircraft production.

Compounding the issue, a work stoppage in the supply chain impacted ATI’s Q3 outcomes, with sales of $1.05 billion and earnings per share (EPS) of $0.60 falling short of the Zacks Consensus estimates by -7% and -9%, respectively.

Image Source: Zacks Investment Research

EPS Estimates Decline

In the wake of subpar Q3 results, fiscal 2024 EPS estimates have fallen by 8% over the past 60 days. More alarmingly, EPS estimates for FY25 have dipped by 11% in the same timeframe.

Image Source: Zacks Investment Research

Rising Competition in the Market

Another reason to consider selling ATI stock is the increasing competition from Carpenter Technology CRS. Carpenter Technology currently holds a Zacks Rank #1 (Strong Buy), driven by a trend of positive earnings estimate revisions. Worthington Steel WS is also emerging as a strong competitor in the specialty steel manufacturing sector.

Final Thoughts

For investors seeking to lock in gains, now may be an appropriate time to sell ATI Inc shares. While ATI might present future investment opportunities, the current trend of decreasing earnings estimates suggests potential short-term challenges.

Get Ahead with Zacks’ Top Stock Picks for 2025

Would you like to know about Zacks’ 10 top stock picks for 2025? Historical data indicates that early insights can lead to impressive stock performance.

Since 2012, when Sheraz Mian became responsible for the portfolio, the Zacks Top 10 Stocks gained an astonishing +2,112.6%, significantly outpacing the S&P 500’s +475.6%. As of now, Sheraz is researching around 4,400 companies to identify the best 10 stocks to buy and hold for 2025. Don’t miss your chance to invest in these recommended stocks, set for release on January 2.

Be the first to know about our new Top 10 Stocks >>

Looking for timely recommendations from Zacks Investment Research? Download our report on 5 Stocks Set to Double for free.

ATI Inc. (ATI) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

Worthington Steel, Inc. (WS) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.