Why Shares of Allegheny Technologies Climbed in May
Shares of Allegheny Technologies (NYSE: ATI) rose 15.6% in May, according to data provided by S&P Global Market Intelligence, on growing investor hope that both the company and the airline industry it serves will survive the COVID-19 pandemic. It's been a tough year for Allegheny investors: shares were down about 75% year to date as of late March. But in recent months, the stock has slowly been on the upswing.
Allegheny Technologies is a specialty metals manufacturer focused on titanium and related alloys used in the aerospace, energy, chemicals, and medical markets. The company's primary focus is commercial jet engine parts, which comprise more than half of its sales.
That business has come under pressure due to the pandemic. Airlines that were looking to expand just months ago are now instead cutting flights and grounding planes. That means less demand for parts, and fewer new planes and engines expected to be sold in the years to come.
Source Fool.com
