Trade-Ideas LLC identified Allegheny Technologies ( ATI) as a strong on high relative volume 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 $27.6 million.
  • ATI has traded 232,013 shares today.
  • ATI is trading at 3.30 times the normal volume for the stock at this time of day.
  • ATI is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 6.2%. Currently there are 3 analysts that rate Allegheny Technologies a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for Allegheny Technologies has been 2.0 million shares per day over the past 30 days. Allegheny has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.02 and a short float of 11% with 5.27 days to cover. Shares are down 65.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Allegheny Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 20557.1% when compared to the same quarter one year ago, falling from -$0.70 million to -$144.60 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, ALLEGHENY TECHNOLOGIES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for ALLEGHENY TECHNOLOGIES INC is currently extremely low, coming in at 2.29%. It has decreased significantly from the same period last year.
  • ALLEGHENY TECHNOLOGIES INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ALLEGHENY TECHNOLOGIES INC continued to lose money by earning -$0.02 versus -$0.93 in the prior year. For the next year, the market is expecting a contraction of 3400.0% in earnings (-$0.70 versus -$0.02).
  • This stock's share value has moved by only 62.72% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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