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Alcoa (AA) Stock Moves -1.45%: What You Should Know

Alcoa (AA) closed at $50.27 in the latest trading session, marking a -1.45% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.14%. Elsewhere, the Dow lost 1.91%, while the tech-heavy Nasdaq lost 0.27%.

Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 11.38% over the past month. This has outpaced the Industrial Products sector's gain of 11.24% and the S&P 500's gain of 7.62% in that time.

Alcoa will be looking to display strength as it nears 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.

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 a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.21% lower. Alcoa is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 7.82 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.82.

Meanwhile, AA's PEG ratio is currently 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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