Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alcoa (AA) closed at $62.20, marking a +1.07% move from the previous day. This change outpaced the S&P 500's 0.92% gain on the day. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.54%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 28.8% over the past month. This has outpaced the Industrial Products sector's loss of 0.31% and the S&P 500's loss of 0.85% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2022. In that report, analysts expect Alcoa to post earnings of $2.05 per share. This would mark year-over-year growth of 688.46%. Meanwhile, our latest consensus estimate is calling for revenue of $3.31 billion, up 38.39% from the prior-year quarter.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 13.5% higher within the past month. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 9.95 right now. This represents a discount compared to its industry's average Forward P/E of 11.56.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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