) touched a new 52-week high of $38.05 on Mar 25, above its
previous high of $37.59. The stock pulled back to close the day
ALLEGHENY TECH (ATI): Free Stock Analysis
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The Pennsylvania-based metals processor, which has a market cap
of roughly $4 billion, has seen its shares shoot up roughly 23%
over a year. Average volume of shares traded over the last three
months is around 1,251K.
What's Driving ATI 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. Its adjusted loss from continuing operations for the
quarter was narrower than the Zacks Consensus Estimate.
Allegheny, a Zacks Rank #3 (Hold) stock, is witnessing healthy
demand from aerospace OEMs, driven by production ramp ups. It
should benefit 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 strong.
Allegheny is in the process of finishing 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.
Allegheny also 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
Worthington Industries, Inc.
The Norsk Hydro ASA
). All of them hold a Zacks Rank #2 (Buy).