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Alcoa (AA) Gains As Market Dips: What You Should Know

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In the latest trading session, Alcoa (AA) closed at $87.73, marking a +0.02% move from the previous day. This move outpaced the S&P 500's daily loss of 0.97%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.49%.

Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 6.48% over the past month. This has outpaced the Industrial Products sector's gain of 2.51% and the S&P 500's gain of 4.71% in that time.

Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. This is expected to be April 20, 2022. In that report, analysts expect Alcoa to post earnings of $2.90 per share. This would mark year-over-year growth of 267.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.44 billion, up 19.86% 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.

Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. The Zacks Consensus EPS estimate has moved 50.77% higher within the past month. Alcoa is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Alcoa is holding a Forward P/E ratio of 6.7. This valuation marks a discount compared to its industry's average Forward P/E of 10.12.

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 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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