Time New York: Sat 15 Dec 19:54 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Allegheny (ATI) Hits New 52-Week High: What’s Driving It?

Zacks

Shares of Allegheny Technologies Incorporated ATI scaled a fresh 52-week high of $27.71 on Jan 8, before eventually closing the day at $27.25.

The company has a market cap of roughly $3 billion. Average volume of shares traded in the last three months is around 2,237.6K.

Allegheny’s shares have moved up 13.6% in the last three months, outperforming the industry’s 7.4% growth.



Driving Factors

Allegheny, in October 2017, said that it expects the High Performance Metals and Components unit to maintain robust performance especially in the commercial aerospace. Further, the company expects the unit to deliver improved results in the fourth quarter compared with the third.

The Flat-Rolled Products unit, which accounted for about 62% of 2016 sales, is expected to benefit from increasing raw material prices in the fourth quarter of 2017. The company expects operational improvements and product mix benefits to continue in 2018.

Allegheny anticipates significant profit improvement opportunities in 2018, aided by the completion of the start-up and qualification of its new nickel alloys powder facility.

Moreover, Allegheny continues to improve its cost structure with its gross cost-reduction initiative. The Meltless titanium process helps the company reduce the steps in producing titanium alloy powders by directly moving to alloy powders and lower the cost of process. The technology also utilizes lower cost raw materials and makes it possible to produce novel alloys which cannot be processed using existing technologies.

Allegheny Technologies Incorporated Price and Consensus


Allegheny Technologies Incorporated Price and Consensus | Allegheny Technologies Incorporated Quote

Zacks Rank & Stocks to Consider

Allegheny currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Huntsman Corporation HUN, Daqo New Energy Corp. DQ and Kronos Worldwide Inc. KRO, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman has an expected long-term earnings growth rate of 8%. Its shares have soared 74.5% over a year.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 170.9% over a year.

Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged 112.4% in the last year.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.