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Is Allegheny Technologies (ATI) Outperforming Other Basic Materials Stocks This Year?

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Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Allegheny Technologies (ATI - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Allegheny Technologies is one of 243 individual stocks in the Basic Materials sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Allegheny Technologies is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATI's full-year earnings has moved 52.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that ATI has returned about 66.4% since the start of the calendar year. Meanwhile, stocks in the Basic Materials group have gained about 8.2% on average. This means that Allegheny Technologies is outperforming the sector as a whole this year.

Another Basic Materials stock, which has outperformed the sector so far this year, is Huntsman (HUN - Free Report) . The stock has returned 8.9% year-to-date.

In Huntsman's case, the consensus EPS estimate for the current year increased 5% 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, which includes 4 individual stocks and currently sits at #8 in the Zacks Industry Rank. On average, stocks in this group have gained 34.3% this year, meaning that ATI is performing better in terms of year-to-date returns.

On the other hand, Huntsman belongs to the Chemical - Diversified industry. This 40-stock industry is currently ranked #157. The industry has moved -10.5% year to date.

Allegheny Technologies and Huntsman could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.


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