ATI (ATI) Falls More Steeply Than Broader Market: What Investors Need to Know

ATI (ATI) ended the recent trading session at $147.54, demonstrating a -1.4% change from the preceding day's closing price. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.

The stock of maker of steel and specialty metals has risen by 0.72% in the past month, leading the Aerospace sector's loss of 4.12% and the S&P 500's loss of 3.59%.

Investors will be eagerly watching for the performance of ATI in its upcoming earnings disclosure. The company is expected to report EPS of $0.87, up 20.83% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.19 billion, reflecting a 3.57% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.18 per share and a revenue of $4.96 billion, demonstrating changes of +29.01% and +8.17%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ATI. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. At present, ATI boasts a Zacks Rank of #2 (Buy).

In terms of valuation, ATI is presently being traded at a Forward P/E ratio of 35.78. This represents a premium compared to its industry average Forward P/E of 35.71.

Meanwhile, ATI's PEG ratio is currently 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense Equipment industry had an average PEG ratio of 2.09 as trading concluded yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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This article originally published on Zacks Investment Research (zacks.com).

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