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Alcoa (AA) Gains But Lags Market: What You Should Know

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Alcoa (AA) closed at $73.71 in the latest trading session, marking a +0.29% move from the prior day. The stock lagged the S&P 500's daily gain of 2.14%. Elsewhere, the Dow gained 1.82%, while the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the bauxite, alumina and aluminum products company had lost 0.49% over the past month, outpacing the Industrial Products sector's loss of 2.26% and the S&P 500's loss of 5.01% in that time.

Alcoa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alcoa to post earnings of $2.75 per share. This would mark year-over-year growth of 248.1%. Meanwhile, our latest consensus estimate is calling for revenue of $3.49 billion, up 21.48% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.47 per share and revenue of $14.2 billion. These totals would mark changes of +53.29% and +16.86%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 49.34% higher. Alcoa is currently a Zacks Rank #2 (Buy).

Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 7.02. This represents a discount compared to its industry's average Forward P/E of 10.34.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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