In the latest close session, ATI (ATI) 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.
