Alcoa (AA) closed the most recent trading day at $55.50, moving -0.61% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 9.73% over the past month. This has outpaced the Industrial Products sector's gain of 5.15% and the S&P 500's gain of 3.65% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. The company is expected to report EPS of $0.24, down 88.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, down 1.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.53 per share and revenue of $13.03 billion. These totals would mark changes of -4.39% and +7.24%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 4% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alcoa is holding a Forward P/E ratio of 8.56. This represents a premium compared to its industry's average Forward P/E of 8.53.
We can also see that AA currently has a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AA's industry had an average PEG ratio of 0.88 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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