Allegheny Technologies Incorporated (ATI) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Allegheny Technologies Incorporated (ATI) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 9 reasons to buy and 5 reasons to sell ATI stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also 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 / investment?
  • What are ATI analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ATI stock:

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 14.10%, higher than the industry and sector average revenue growth (6.28% and 4.74%, respectively). See ATI revenue growth chart.

5. ATI profitability is improving. The YoY profit margin change was 8.10pp. See ATI profitability chart.

6. ATI forward P/E ratio is 10.23, and it’s low compared to its industry peers’ P/E ratios. See ATI forward P/E ratio chart.

7. ATI PEG ratio (P/E adjusted for growth) is 0.17, and it’s low compared to its industry peers’ PEG ratios. See ATI PEG chart.

8. ATI average analyst rating is Buy. See ATI analyst rating chart.

9. ATI average analyst price target ($33.75) is above its current price ($27.20). See ATI price target chart.

Now that you understand the bull case, let’s look at the reasons to sell ATI stock (i.e., the bear case):

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 short share of float is 16.04%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ATI short share of float chart.

5. ATI short interest (days to cover the shorts) ratio is 11.67. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ATI short interest ratio chart.

Now let's look at the key statistics for ATI:

Metrics ATI
Price $24.09
Average Price Target / Upside $33.75 / 40.13%
Average Analyst Rating Buy
Industry Metal Fabrication
Sector Industrials
Number of Employees 8,800
Market Cap $3.24B
Forward P/E Ratio 10.46
Price/Book Ratio 0.8
PEG 0.19
Revenue (TTM) $4.05B
YoY Quarterly Revenue Growth 14.1%
Profit Margin 5.5%

What are your thoughts on ATI?

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