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

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In the latest trading session, Alcoa (AA) closed at $90.90, marking a +0.31% move from the previous day. This change lagged the S&P 500's 0.81% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.36%.

Coming into today, shares of the bauxite, alumina and aluminum products company had lost 0.04% in the past month. In that same time, the Industrial Products sector gained 5.79%, while the S&P 500 gained 5.64%.

Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be April 20, 2022. On that day, Alcoa is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 267.09%. Our most recent consensus estimate is calling for quarterly revenue of $3.41 billion, up 18.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.09 per share and revenue of $14.69 billion. These totals would mark changes of +91.65% and +20.91%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Alcoa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 50.77% higher. Alcoa is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 6.92. This valuation marks a discount compared to its industry's average Forward P/E of 10.42.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 14, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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