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Why Allegheny Technologies (ATI) Dipped More Than Broader Market Today
ATIATI(ATI) ZACKS· ZACKS·2025-01-25 00:21

Core Viewpoint - Allegheny Technologies (ATI) is set to release its earnings report on February 4, 2025, with expectations of a slight decline in EPS and a modest increase in revenue compared to the previous year [2]. Group 1: Stock Performance - ATI's stock closed at 58.56,reflectingadecreaseof0.7158.56, reflecting a decrease of 0.71% from the previous day, underperforming the S&P 500, which fell by 0.29% [1]. - Over the past month, ATI's shares increased by 5.06%, outperforming the Basic Materials sector's gain of 1.82% and the S&P 500's gain of 2.52% [1]. Group 2: Earnings Forecast - The forecast for ATI's upcoming earnings report includes an EPS of 0.60, indicating a 6.25% decrease from the same quarter last year [2]. - The Zacks Consensus Estimate projects net sales of $1.08 billion, which is a 1.83% increase from the year-ago period [2]. Group 3: Analyst Estimates - Recent changes in analyst estimates for ATI suggest a positive outlook on the company's business operations and profit generation capabilities [3]. - The Zacks Rank system, which reflects these estimate changes, provides a rating system that can help investors make informed decisions [4]. Group 4: Zacks Rank and Valuation - Currently, ATI holds a Zacks Rank of 3 (Hold), with a recent downward shift of 0.23% in the Consensus EPS estimate over the past month [5]. - ATI has a Forward P/E ratio of 20.54, which is higher than the industry's Forward P/E of 14.17, indicating a premium valuation [6]. - The company has a PEG ratio of 1.57, compared to the Steel - Specialty industry's average PEG ratio of 1 [6]. Group 5: Industry Context - The Steel - Specialty industry, part of the Basic Materials sector, has a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [7]. - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7].