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Allegheny Technologies (ATI) closed at $54.23 in the latest trading session, marking a +0.04% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.09%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
Coming into today, shares of the maker of steel and specialty metals had lost 6.57% in the past month. In that same time, the Basic Materials sector lost 7.73%, while the S&P 500 lost 0.29%.
Market participants will be closely following the financial results of Allegheny Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 7.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 1.98% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.27 per share and a revenue of $4.31 billion, signifying shifts of -11.33% and +3.19%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Allegheny Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Allegheny Technologies holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Allegheny Technologies has a Forward P/E ratio of 23.86 right now. This denotes a premium relative to the industry's average Forward P/E of 23.23.
Meanwhile, ATI's PEG ratio is currently 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Steel - Speciality industry currently had an average PEG ratio of 1.55 as of yesterday's close.