Strong And Under The Radar Today: Allegheny Technologies (ATI)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Allegheny Technologies ( ATI) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Allegheny Technologies as such a stock due to the following factors:

  • ATI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.3 million.
  • ATI is making at least a new 3-day high.
  • ATI is mentioned 1.71 times per day on StockTwits.
  • ATI has not yet been mentioned on StockTwits today.
  • ATI is currently in the upper 20% of its 1-year range.
  • ATI is in the upper 35% of its 20-day range.
  • ATI is in the upper 45% of its 5-day range.
  • ATI is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ATI:

Allegheny Technologies Incorporated produces and sells specialty materials and components worldwide. The company operates through two segments, High Performance Materials and Components, and Flat-Rolled Products. The stock currently has a dividend yield of 1.7%. Currently there are 4 analysts that rate Allegheny Technologies a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Allegheny Technologies has been 1.1 million shares per day over the past 30 days. Allegheny has a market cap of $4.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.20 and a short float of 6.8% with 5.97 days to cover. Shares are up 18.2% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Analysis:

TheStreet Quant Ratings rates Allegheny Technologies as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • ATI's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 5.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, ATI's share price has jumped by 56.35%, exceeding the performance of the broader market during that same time frame. Although ATI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.11 is sturdy.
  • The gross profit margin for ALLEGHENY TECHNOLOGIES INC is currently extremely low, coming in at 11.89%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.35% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to $19.40 million or 83.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.


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