Is Allegheny Technologies Ready to Rebound?

Shares of specialty metals producer Allegheny Technologies (ATI) are more than 53% off their 52-week high of $66.39. At $30.92, the shares are trading close the lows of April 2009. Intrepid buyers at the time were facing recession-depressed 2009 earnings per share (from continuing operations) of just $0.46. The shares moved up very quickly and more than doubled to $73.50 by April 2011.

Trailing 12-month operating earnings through March 2012 were $2.14. Estimates for the full-year range were between $2.48 and $2.92, with a bias centered on $2.52. The lowest published expectation for next year is $3.43, while the top-end estimate is $3.68. In each of the three very good years of 2006 through 20008, EPS came in between $5.55 and $7.28. Clearly, investors are already pricing in a very poor macroeconomic picture, just as they did in late 2008 through early 2009....190 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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