Allegheny Technologies Incorporated (ATI) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about ATI stock:

  • Is ATI a buy or a sell?
  • Should I sell or hold ATI stock today?
  • Is ATI a good buy / a good investment?
  • What are ATI analyst opinions, recommendations, ratings?

Here are ATI stock buy reasons/signals:

1. Next-generation commercial airliners will use a significantly higher proportion of titanium as a percentage of total weight relative to older models.

2. The company will benefit from an increase in unconventional techniques used to extract oil and natural gas due to its production of specialized alloys that stand up to harsh drilling environments.

3. The company’s aftermarket aerospace sales should increase as global air traffic continues its steady growth.

4. ATI quarterly revenue growth was 8.60%, higher than the industry and sector average revenue growth (6.00% and 6.79%, respectively).

5. ATI Price/Book ratio is 1.58, and it’s low compared to its industry peers’ P/B ratios.

6. ATI Price/Sales ratio is 0.67, and it’s low compared to its industry peers’ P/S ratios.

Here are ATI stock sell reasons/signals:

1. The company is leveraged to cyclical end markets, and its financial results have been volatile over the past several years.

2. Despite surcharge pricing for many of its products, raw material price increases can still dent the company’s near-term results.

3. Rising stainless steel export volumes from China have pressured margins for U.S. producers.

4. ATI stock price ($22.91) is close to the 52-week high ($23.26). Perhaps now is a good time to sell?

5. ATI profitability is declining. The YoY profit margin change was -10.29pp.

6. ATI average analyst price target ($21.38) is below its current price ($22.91).

7. ATI short share of float is 32.02%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

8. ATI short interest (days to cover the shorts) ratio is 16.28. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ATI?

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