ATI Wins Buy Call as Industrials Lag S&P 500 by 12.4 Percentage Points

1 articles · Updated · Yahoo Finance · Aug 24

ATI emerged as the preferred industrials pick in a new stock screen that also flagged Herc and Scorpio Tankers as sells.
A 1.5% six-month drop for industrials versus a 10.9% gain for the S&P 500 drove the review, with the analysis arguing only a few high-quality names can keep growing through a downturn.
Herc drew caution after its operating margin fell 7 percentage points in five years and share issuance helped push EPS down 30.3% annually despite revenue growth; the stock trades at 19.5x forward earnings.
Scorpio Tankers was marked down on weaker vessel performance, a projected 24.9% sales decline over 12 months, and a 6% annual EPS contraction over two years, even at a 12x forward P/E.
ATI, valued at $28.19 billion, was highlighted for its specialized aerospace, defense, medical and energy materials business, with products used across nearly every commercial and military aircraft in service.