Zacks Industry Rank Analysis Highlights: Allegheny Technologies, Cleveland-Cliffs, Reliance Steel and Steel Technologies.CHICAGO -- Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week's analysis include Allegheny Technologies Allegheny Technologies, Inc. NYSE: ATI is a specialty metals company headquartered in Pittsburgh, Pennsylvania, USA. It is the 17th largest employer in Allegheny County and one of the last "steel" companies with its headquarters in "The Steel City" and major manufacturing (NYSE NYSE See: New York Stock Exchange :ATI (ATI Technologies Inc., Markham Ontario, http://ati.amd.com) A leading manufacturer of graphics chips and display adapters. Founded in 1985 by K. Y. Ho, Benny Lau and Lee Lau, ATI chips and boards are widely used by OEMs. ), Cleveland-Cliffs (NYSE:CLF CLF The ISO 4217 currency code for Chile Unidades de Fomento. ), Reliance Steel & Aluminum (NYSE:RS) and Steel Technologies (Nasdaq:STTX). To see the Zacks Industry Rank and the trend in earnings estimates revisions for all 208 industry groups, visit http://at.zacks.com/?id=3154. Zacks Industry Rank Analysis written by Charles Rotblut, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , Senior Market Analyst for Zacks.com. There was a wholesale drop in the number of earnings estimate revisions last week. Using a trailing four-week period, the number of positive revisions fell to 2345 from 5144. The number of negative revisions dropped to 2608 from 4560. Seasonality is definitely playing a role as second-quarter earnings season has ended and the latter part of August is typically a slow period for the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. The ratio of positive earnings revisions to negative earnings revisions for stocks within the Zacks Rank universe declined to 0.90 last week. This is the first time the ratio has been below 1.0 (indicating a greater number of negative revisions than positive revisions) since July 24. Since the beginning of the year, the ratio has fluctuated in a range of 0.81 to 1.26, so the recent drop, by itself, is not cause for concern. Metal Products-Distributor moved higher on the Industry Rank list thanks to Reliance Steel & Aluminum (NYSE:RS). One of the five analysts to cover the stock raised his forecast for full-year earnings last week. This revision caused the consensus estimate to rise three cents to $4.82 per share. Investors should note that over the past 60 days, the consensus estimate has risen by a cumulative 35 cents. Furthermore, expectations for 2007 earnings are rising, though analysts are still predicting a small decline to $4.75 per share. There are a total of three metal groups near the top of the Industry Rank List. The other two groups are Mining-Iron and Steel-Specialty Alloys, which encompass the following Zacks #1 Rank stocks: Allegheny Technologies (NYSE:ATI), Cleveland-Cliffs (NYSE:CLF), and Steel Technologies (Nasdaq:STTX). ATI has the most bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish trend in estimate revisions, with the consensus estimate for 2006 and 2007 earnings rising several times over the past two months. Within just the past 30 days, expectations for 2006 earnings have been increased to $4.95 per share from $4.77 per share. Strong growth is projected for next year as well, with analysts now anticipating profits of $5.90 per share, versus $5.74 a month ago. The big picture is that analysts are expecting demand for metals to remain strong throughout next year. Even for companies, such as Reliance Steel, where earnings are projected to essentially stabilize, the trend points to a healthy worldwide economy and, in particular, sustained consumption in the U.S. Precious Metals/Jewelry has a bullish Zacks Industry Rank because of the inclusion of three Zacks #2 Rank, the most widely traded of which is Fossil (Nasdaq:FOSL FOSL Finding Of Suitability (for) Leasing FOSL Falling Off Seat Laughing ). FOSL recently topped second-quarter expectations by four cents with earnings of 16 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Revenues rose 14.6% thanks to strength in international demand, increased sales volume in accessories and sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses and an 8.3% increase same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. . Domestic watch volume was lower, however. The company raised its full-year guidance to $1.11 per share, from $1.07, citing currency valuation and low double-digit sales growth. Five of the seven covering analysts raised their forecasts in response, resulting in a three-cent increase in the consensus estimate to $1.09 per share. The interactive Zacks Industry Rank List allows you to see all of the companies, and their Zacks Rank, within more than 200 industries. See the list at http://at.zacks.com/?id=3154. About Zacks Industry Rank and the Zacks Rank Zacks Industry Rank is calculated by averaging the Zacks Rank for all covered companies within a given industry. The Zacks Rank is assigned to approximately 4400 stocks and ranges from #1 ("Strong Buy") to #5 ("Strong Sell"). Both the Zacks Industry Rank and the Zacks Rank are quantitative indicators designed to cover periods of 1-3 months. Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +32.4%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 145.9% annually (+4.7% vs. +11.6%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively. Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the market. 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The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=2565. Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. (a)The Zacks Performance Rank performance is the total return of equal weighted simulated portfolios consisting of those stocks with the indicated Zacks Rank net of fees. Results reflect the reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of dividends and other earnings. Simulated results do not represent actual trading and may not reflect the impact that economic and market factors might have had on decision-making if an adviser were actually managing a client's money. (b)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. 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