Allegheny Technology Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of specialty metals producer Allegheny Tech (NYS: ATI) rose on positive commentary from CNBC's Jim Cramer.

So what: Regular Fools know to take any analyst's opinion with a grain of salt, but given the sheer number of calls the controversial Cramer makes, it's best to take an extra cautious approach toward his recommendations. In this particular case, Cramer chose Allegheny over Alcoa (NYS: AA) as the best way to play Boeing's (NYS: BA) Dreamliner launch.

Now what: Don't let today's pop keep you from looking into the stock. While blindly following the advice of so-called market mavens is never a good idea, Allegheny's growth prospects, specialized niche in high-performance metals, and low forward P/E really do make it an attractive long-term opportunity. Of course, with a stock that sports nearly twice the volatility of the broader market, expect the path to be bumpy.

Interested in more info onAllegheny?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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