U.S. markets close in 5 hours 5 minutes
  • S&P 500

    +6.87 (+0.18%)
  • Dow 30

    +59.81 (+0.19%)
  • Nasdaq

    -6.71 (-0.06%)
  • Russell 2000

    +2.68 (+0.15%)
  • Crude Oil

    +1.09 (+1.01%)
  • Gold

    -3.70 (-0.20%)
  • Silver

    +0.18 (+0.88%)

    +0.0041 (+0.39%)
  • 10-Yr Bond

    +0.0480 (+1.54%)

    +0.0027 (+0.22%)

    +0.0170 (+0.01%)

    -690.92 (-3.22%)
  • CMC Crypto 200

    -9.45 (-2.05%)
  • FTSE 100

    +41.70 (+0.58%)
  • Nikkei 225

    +379.30 (+1.43%)

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

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Alcoa (AA) closed at $92.46 in the latest trading session, marking a +0.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the bauxite, alumina and aluminum products company had gained 18.13% in the past month. In that same time, the Industrial Products sector gained 4.66%, while the S&P 500 gained 3.76%.

Alcoa will be looking to display strength as it nears its next earnings release. On that day, Alcoa is projected to report earnings of $2.92 per share, which would represent year-over-year growth of 269.62%. 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 $12.70 per share and revenue of $14.75 billion. These totals would mark changes of +85.94% and +21.37%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 58.13% higher. Alcoa is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Alcoa currently has a Forward P/E ratio of 7.24. This represents a discount compared to its industry's average Forward P/E of 10.46.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alcoa (AA) : Free Stock Analysis Report
To read this article on Zacks.com click here.