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In the latest market close, Allegheny Technologies (ATI) reached $57.24, with a -1.05% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.78%. Elsewhere, the Dow saw a downswing of 0.99%, while the tech-heavy Nasdaq depreciated by 2.61%.
The maker of steel and specialty metals's stock has dropped by 12.16% in the past month, falling short of the Basic Materials sector's loss of 0.13% and the S&P 500's loss of 3.48%.
The upcoming earnings release of Allegheny Technologies will be of great interest to investors. It is anticipated that the company will report an EPS of $0.59, marking a 22.92% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.08 billion, indicating a 3.75% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $4.67 billion, which would represent changes of +17.48% and +7.03%, respectively, from 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. Currently, Allegheny Technologies is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Allegheny Technologies is presently being traded at a Forward P/E ratio of 20.02. This denotes a premium relative to the industry's average Forward P/E of 13.69.
We can also see that ATI currently has a PEG ratio of 0.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Steel - Speciality industry currently had an average PEG ratio of 0.9 as of yesterday's close.
The Steel - Speciality industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.