ATI (ATI) Gains As Market Dips: What You Should Know

In the latest trading session, ATI (ATI) closed at $149.59, marking a +2.19% move from the previous day. This change outpaced the S&P 500's 0.37% loss on the day. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.84%.

Coming into today, shares of the maker of steel and specialty metals had lost 8.09% in the past month. In that same time, the Aerospace sector lost 8.38%, while the S&P 500 lost 3.7%.

The upcoming earnings release of ATI will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.87, reflecting a 20.83% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 3.57% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.18 per share and a revenue of $4.96 billion, indicating changes of +29.01% and +8.17%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for ATI. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.28% increase. ATI is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note ATI's current valuation metrics, including its Forward P/E ratio of 35. Its industry sports an average Forward P/E of 35.1, so one might conclude that ATI is trading at a discount comparatively.

It's also important to note that ATI currently trades at a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Aerospace - Defense Equipment industry was having an average PEG ratio of 2.21.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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This article originally published on Zacks Investment Research (zacks.com).

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