In the latest close session, ATI (ATI – Free Report) was down 2.5% at $192.17. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
The maker of steel and specialty metals’s stock has climbed by 10.43% in the past month, exceeding the Aerospace sector’s gain of 1.09% and the S&P 500’s loss of 1.21%.
The investment community will be paying close attention to the earnings performance of ATI in its upcoming release. The company’s earnings per share (EPS) are projected to be $1.02, reflecting a 37.84% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.22 billion, showing a 7.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.43 per share and a revenue of $5 billion, demonstrating changes of +36.73% and +8.98%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for ATI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. ATI is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ATI has a Forward P/E ratio of 44.48 right now. Its industry sports an average Forward P/E of 39.96, so one might conclude that ATI is trading at a premium comparatively.
Meanwhile, ATI’s PEG ratio is currently 1.7. 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 Aerospace – Defense Equipment industry currently had an average PEG ratio of 2.3 as of yesterday’s close.
The Aerospace – Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
