Alcoa (AA) Stock Sinks As Market Gains: What You Should Know
Alcoa (AA) closed at $89.88 in the latest trading session, marking a -0.89% move from the prior day. This change lagged the S&P 500's daily gain of 1.13%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 0.87%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 15.97% over the past month. This has outpaced the Industrial Products sector's gain of 3.9% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. In that report, analysts expect Alcoa to post earnings of $2.84 per share. This would mark year-over-year growth of 259.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.49 billion, up 21.48% from the year-ago period.
AA's full-year Zacks Consensus Estimates are calling for earnings of $11.77 per share and revenue of $14.2 billion. These results would represent year-over-year changes of +72.33% and +16.86%, respectively.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 46.55% higher. Alcoa is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 7.71. This valuation marks a discount compared to its industry's average Forward P/E of 10.62.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 20, putting it in the top 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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