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Allegheny Technologies (ATI) closed at $56.11 in the latest trading session, marking a +1.96% move from the prior day. This move outpaced the S&P 500's daily gain of 1.26%. Elsewhere, the Dow saw an upswing of 0.8%, while the tech-heavy Nasdaq appreciated by 1.77%.
Heading into today, shares of the maker of steel and specialty metals had lost 5.9% over the past month, outpacing the Basic Materials sector's loss of 9.43% and lagging the S&P 500's loss of 2.82% in that time.
The investment community will be closely monitoring the performance of Allegheny Technologies in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 7.81% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.09 billion, indicating a 1.98% growth compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Allegheny Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Allegheny Technologies possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Allegheny Technologies has a Forward P/E ratio of 19.12 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.11.
Also, we should mention that ATI has a PEG ratio of 1.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Steel - Speciality stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Steel - Speciality industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% echelons of all 250+ industries.