) reached a new 52-week high of $40.94 on Apr 14, above its
previous high of $39.94. The stock closed the day at $40.61.
Allegheny's shares have recorded a one-year return of roughly
40%. The company's long-term estimated earnings per share (EPS)
growth rate is 15%. Average volume of shares traded over the last
three months was around 1,487K.
What's Driving Allegheny Up?
Allegheny's consolidated profit for the fourth quarter of
2013, reported on Jan 22, jumped manifold to $173.4 million or
$1.62 per share. The company's adjusted loss from continuing
operations for the quarter was narrower than the Zacks Consensus
Allegheny, a Zacks Rank #3 (Hold) stock, is seeing healthy demand
from aerospace OEMs, driven by production ramp ups. It should
gain from its diversified global growth markets and
differentiated product mix.
Allegheny envisions business conditions to gradually improve
through 2014. The company anticipates market conditions to remain
favorable across many of its major markets over the next 2-5
Moreover, Allegheny expects continued increase in aerospace
build rates. It expects capital spending on global oil and gas
exploration and production forecasts project to remain
Allegheny is in the process of completing several self-funded
capital projects, which will help it to augment organic growth.
The company's $1.2 billion Hot-Rolling and Processing Facility
(HRPF) project remains on schedule and is expected to complete
the cold and hot-commissioning process in 2014. The HRPF facility
is expected to significantly boost capabilities of the company's
Flat-Rolled Products division.
Moreover, Allegheny continues to improve its cost structure with
its gross cost reduction initiative. The company exceeded its
target of at least $100 million in cost reductions in 2013 and
achieved roughly $141 million in gross cost reduction during the
year, partly through operating cost reductions and productivity
improvements. Allegheny expects at least $100 million in gross
cost reductions in 2014.
Other Stocks to Consider
Other metals companies worth considering include
Century Aluminum Co.
). While NN retains a Zacks Rank #1 (Strong Buy), both Century
Aluminum and NSK carry a Zacks Rank #2 (Buy).
ALLEGHENY TECH (ATI): Free Stock Analysis
CENTURY ALUM CO (CENX): Free Stock Analysis
NN INC (NNBR): Free Stock Analysis Report
NSK LTD -UN ADR (NPSKY): Get Free Report
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