In the latest trading session, Alcoa (AA) closed at $49.56, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 23.47% over the past month. This has lagged the Industrial Products sector's loss of 4.35% and the S&P 500's loss of 0.62% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. In that report, analysts expect Alcoa to post earnings of $3.71 per share. This would mark year-over-year growth of 148.99%. Meanwhile, our latest consensus estimate is calling for revenue of $3.88 billion, up 37% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $15.05 billion, which would represent changes of +69.99% and +23.81%, respectively, from the prior year.
Investors might also notice 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.22% lower. Alcoa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 4.25. This represents a discount compared to its industry's average Forward P/E of 5.71.
Investors should also note that AA has a PEG ratio of 0.49 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.49 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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.