In the latest trading session, Allegheny Technologies (ATI) closed at $28, marking a +0.5% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the maker of steel and specialty metals had lost 13.85% over the past month, lagging the Basic Materials sector's loss of 12.31% and the S&P 500's loss of 10.4% in that time.
Wall Street will be looking for positivity from Allegheny Technologies as it approaches its next earnings report date. On that day, Allegheny Technologies is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 960%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $922.44 million, up 27.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.02 per share and revenue of $3.65 billion, which would represent changes of +1453.85% and +30.24%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Allegheny Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Allegheny Technologies currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Allegheny Technologies is holding a Forward P/E ratio of 13.79. Its industry sports an average Forward P/E of 11.92, so we one might conclude that Allegheny Technologies is trading at a premium comparatively.
The Steel - Speciality industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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