Alcoa (AA) Completes Sale of 2,100 Acre Land in Maryland
Alcoa Corporation AA yesterday announced that it has closed the sale of a 2,100 acre land in Maryland. The transaction, valued at $100 million in cash, was done between Alcoa’s subsidiary — Eastalco Aluminum Company — and TPG Real Estate Partners and Quantum Loophole’s joint venture on Jun 23.
Alcoa’s shares gained 0.8% yesterday to eventually close the trading session at $36.09.
Inside the Headlines
Located in Frederick County, MD, the land was the site of the previous Eastalco smelter, which was shut down in 2010. The sale of this property will likely ensure the transition of a previous industrial site to a one with new industrial usage, through remediation actions.
As noted, the site is ideal for Quantum Loophole to develop an advanced data center community, on the basis of its closeness to Northern Virginia and the availability of required power and water. Notably, the data center project plan will include investments in strong fiber connectivity, effective design for sustainable power and water use, and conservation of current structures vital to local history.
Alcoa anticipates generating a profit of about $90 million from this transaction in second-quarter 2021. The company intends to announce second-quarter 2021 results on Jul 15, 2021, after the market closes.
Zacks Rank, Price Performance and Estimate Trend
Alcoa, with a $6.7-billion market capitalization, currently sports a Zacks Rank #1 (Strong Buy). The company is likely to benefit from increase in aluminum consumption with end-market recovery in the quarters ahead. Also, growth in demand for value-add products from the automotive sector is likely to be beneficial. Further, its efforts to expand sales of Sustana low carbon products with the addition of EcoSource low carbon alumina bode well.
In the past six months, the company’s shares have gained 56% compared with the industry’s growth of 34.1%.
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In the past 30 days, the Zacks Consensus Estimate for the company’s earnings has moved up 2.2% to $4.75 for 2021, while the same for 2022 has been raised 9.3% to $4.81.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are Barnes Group, Inc. B, Franklin Electric Co., Inc. FELE and SPX FLOW, Inc. FLOW, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Barnes delivered an earnings surprise of 19.45%, on average, in the trailing four quarters.
Franklin Electric delivered an earnings surprise of 25.39%, on average, in the trailing four quarters.
SPX FLOW delivered an earnings surprise of 82.58%, on average, in the trailing four quarters.
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