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? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

ATI is a member of our Aerospace group, which includes 76 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ATI is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ATI's full-year earnings has moved 15.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ATI has gained about 78.2% so far this year. In comparison, Aerospace companies have returned an average of -4.7%. This shows that ATI is outperforming its peers so far this year.

Ducommun (DCO) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 75%.

For Ducommun, the consensus EPS estimate for the current year has increased 4.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, ATI belongs to the Aerospace - Defense Equipment industry, a group that includes 36 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, stocks in this group have lost 3.9% this year, meaning that ATI is performing better in terms of year-to-date returns. Ducommun is also part of the same industry.

ATI and Ducommun could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research