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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know

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Alcoa (AA) closed at $61.39 in the latest trading session, marking a +1.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Coming into today, shares of the bauxite, alumina and aluminum products company had gained 15.06% in the past month. In that same time, the Industrial Products sector gained 0.86%, while the S&P 500 gained 0.22%.

Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be January 19, 2022. In that report, analysts expect Alcoa to post earnings of $2.04 per share. This would mark year-over-year growth of 684.62%. Our most recent consensus estimate is calling for quarterly revenue of $3.29 billion, up 37.69% from the year-ago period.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. The Zacks Consensus EPS estimate has moved 18.85% higher within the past month. Alcoa is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 9.34. This valuation marks a discount compared to its industry's average Forward P/E of 12.02.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.

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

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