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Are Basic Materials Stocks Lagging ATI Inc. (ATI) This Year?

Zacks Equity Research
·2-min read

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Allegheny Technologies (ATI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Allegheny Technologies is a member of our Basic Materials group, which includes 241 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Allegheny Technologies is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ATI's full-year earnings has moved 8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the most recent data, ATI has returned 21.3% so far this year. Meanwhile, stocks in the Basic Materials group have lost about 4.5% on average. This shows that Allegheny Technologies is outperforming its peers so far this year.

One other Basic Materials stock that has outperformed the sector so far this year is Kronos Worldwide (KRO). The stock is up 28.2% year-to-date.

The consensus estimate for Kronos Worldwide's current year EPS has increased 156.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Allegheny Technologies belongs to the Steel - Speciality industry, a group that includes 6 individual stocks and currently sits at #56 in the Zacks Industry Rank. On average, stocks in this group have gained 22% this year, meaning that ATI is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Kronos Worldwide belongs to the Chemical - Diversified industry. This 29-stock industry is currently ranked #96. The industry has moved -3.8% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Allegheny Technologies and Kronos Worldwide as they attempt to continue their solid performance.

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ATI Inc. (ATI) : Free Stock Analysis Report

Kronos Worldwide Inc (KRO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research