Allegheny Technologies Inc (ATI): Today's Featured Industrial Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Allegheny Technologies ( ATI) pushed the Industrial industry lower today making it today's featured Industrial laggard. The industry as a whole was unchanged today. By the end of trading, Allegheny Technologies fell 64 cents (-2%) to $30.77 on average volume. Throughout the day, 1.7 million shares of Allegheny Technologies exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $30.57-$31.13 after having opened the day at $31.11 as compared to the previous trading day's close of $31.41. Other companies within the Industrial industry that declined today were: China BAK Battery ( CBAK), down 12.4%, Bonso Electronics International ( BNSO), down 8.6%, ZBB Energy Corporation ( ZBB), down 8.4%, and P & F Industries ( PFIN), down 7.8%.

Allegheny Technologies Incorporated (ATI) engages in the production of specialty metals worldwide. It operates in three segments: High Performance Metals, Flat-Rolled Products, and Engineered Products. Allegheny Technologies has a market cap of $3.48 billion and is part of the industrial goods sector. The company has a P/E ratio of 17.9, above the average industrial industry P/E ratio of 17.5 and above the S&P 500 P/E ratio of 17.7. Shares are down 31% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate Allegheny Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Allegheny Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

On the positive front, Cleantech Solutions International ( CLNT), up 15.6%, THT Heat Transfer Technology ( THTI), up 12.3%, Taylor Devices ( TAYD), up 5.7%, and Intellicheck Mobilisa ( IDN), up 5.2%, were all gainers within the industrial industry with Eaton ( ETN) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).
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