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In the latest trading session, Alcoa (AA) closed at $83.26, marking a +0.88% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the bauxite, alumina and aluminum products company had gained 12.29% over the past month, outpacing the Industrial Products sector's gain of 0.94% and the S&P 500's gain of 5.03% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which 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.
AA's full-year Zacks Consensus Estimates are calling for earnings of $13.09 per share and revenue of $14.69 billion. These results would represent year-over-year changes of +91.65% and +20.91%, respectively.
Investors should also note any recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 25.07% higher. Alcoa currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 6.3 right now. This valuation marks a discount compared to its industry's average Forward P/E of 9.3.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 9, putting it in the top 4% 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.
To follow AA in the coming trading sessions, be sure to utilize Zacks.com.
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