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At $23.54, Is Allegheny Technologies Incorporated (NYSE:ATI) A Buy?

Allegheny Technologies Incorporated (NYSE:ATI), a metals and mining company based in United States, saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Allegheny Technologies’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Allegheny Technologies

What’s the opportunity in Allegheny Technologies?

According to my valuation model, the stock is currently overvalued by about 48%, trading at $23.54 compared to my intrinsic value of $15.85. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Since Allegheny Technologies’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Allegheny Technologies generate?

NYSE:ATI Future Profit Dec 15th 17
NYSE:ATI Future Profit Dec 15th 17

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With revenues expected to grow by a double-digit 16.60% over the next couple of years, the outlook is positive for Allegheny Technologies. If the level of expenses is able to be maintained, it looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Allegheny Technologies’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe Allegheny Technologies should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on Allegheny Technologies for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for Allegheny Technologies, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Allegheny Technologies. You can find everything you need to know about Allegheny Technologies in the latest infographic research report. If you are no longer interested in Allegheny Technologies, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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