Is ATI INC (ATI) Stock Outpacing Its Aerospace Peers This Year?

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. ATI (ATI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.

ATI is one of 77 individual stocks in the Aerospace sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ATI is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ATI's full-year earnings has moved 6.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, ATI has returned 68.7% so far this year. Meanwhile, the Aerospace sector has returned an average of 1.1% on a year-to-date basis. This means that ATI is outperforming the sector as a whole this year.

One other Aerospace stock that has outperformed the sector so far this year is Woodward (WWD). The stock is up 33% year-to-date.

In Woodward's case, the consensus EPS estimate for the current year increased 9.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, ATI belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual stocks and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 6.7% so far this year, so ATI is performing better this group in terms of year-to-date returns. Woodward is also part of the same industry.

Investors with an interest in Aerospace stocks should continue to track ATI and Woodward. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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