Allegheny Technologies Inc (ATI): Today's Featured Industrial Goods 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 Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Allegheny Technologies fell 66 cents (-2.5%) to $26.20 on average volume. Throughout the day, 1.5 million shares of Allegheny Technologies exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $25.92-$26.88 after having opened the day at $26.81 as compared to the previous trading day's close of $26.86. Other companies within the Industrial Goods sector that declined today were: Generac Holdings ( GNRC), down 9.3%, Dixie Group ( DXYN), down 8%, Avalon Holdings ( AWX), down 6.3%, and Ultralife Batteries ( ULBI), down 5.7%.
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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 $2.83 billion and is part of the industrial industry. The company has a P/E ratio of 16.4, below the S&P 500 P/E ratio of 17.7. Shares are down 44.8% year to date as of the close of trading on Friday. Currently there are six analysts that rate Allegheny Technologies a buy, no analysts rate it a sell, and three 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 reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins, a generally disappointing performance in the stock itself and deteriorating net income.

On the positive front, China BAK Battery ( CBAK), up 54.1%, NF Energy Saving ( NFEC), up 25.8%, JinkoSolar ( JKS), up 13.1%, and TAT Technologies ( TATT), up 12%, were all gainers within the industrial goods sector with Manitowoc ( MTW) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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