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Allegheny Technologies (ATI) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw Allegheny Technologies (ATI - Free Report) ending at $62.83, denoting a -1.83% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.6%.

Coming into today, shares of the maker of steel and specialty metals had gained 7.51% in the past month. In that same time, the Basic Materials sector gained 5.75%, while the S&P 500 gained 6.41%.

Market participants will be closely following the financial results of Allegheny Technologies in its upcoming release. The company plans to announce its earnings on October 29, 2024. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 20% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.13 billion, indicating a 9.92% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.47 per share and a revenue of $4.46 billion, signifying shifts of -3.52% and +6.8%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Allegheny Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.27% downward. As of now, Allegheny Technologies holds a Zacks Rank of #3 (Hold).

Digging into valuation, Allegheny Technologies currently has a Forward P/E ratio of 25.9. Its industry sports an average Forward P/E of 14.33, so one might conclude that Allegheny Technologies is trading at a premium comparatively.

Meanwhile, ATI's PEG ratio is currently 1.44. 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 had an average PEG ratio of 0.93 as trading concluded yesterday.

The Steel - Speciality industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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