Is ATI Inc. (ATI) Stock Outpacing Its Basic Materials Peers This Year?
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Allegheny Technologies (ATI) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Allegheny Technologies is a member of the Basic Materials sector. This group includes 241 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ATI's full-year earnings has moved 4.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ATI has gained about 54.2% so far this year. Meanwhile, the Basic Materials sector has returned an average of 3.1% on a year-to-date basis. This means that Allegheny Technologies is performing better than its sector in terms of year-to-date returns.
Another Basic Materials stock, which has outperformed the sector so far this year, is Carpenter Technology (CRS). The stock has returned 49.5% year-to-date.
The consensus estimate for Carpenter Technology's current year EPS has increased 13.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Allegheny Technologies belongs to the Steel - Speciality industry, a group that includes 4 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 47.9% this year, meaning that ATI is performing better in terms of year-to-date returns. Carpenter Technology is also part of the same industry.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Allegheny Technologies and Carpenter Technology as they could maintain their solid performance.
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