In the latest trading session, Arconic (ARNC) closed at $25.98, marking no change from the previous day. This change lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.31%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 5.74% in the past month. In that same time, the Basic Materials sector lost 2.86%, while the S&P 500 lost 0.68%.
Investors will be hoping for strength from ARNC as it approaches its next earnings release. The company is expected to report EPS of $0.51, up 59.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.62 billion, up 2.79% from the year-ago period.
ARNC's full-year Zacks Consensus Estimates are calling for earnings of $2.04 per share and revenue of $14.48 billion. These results would represent year-over-year changes of +50% and +3.32%, respectively.
Investors might also notice recent changes to analyst estimates for ARNC. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2% higher. ARNC is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that ARNC has a Forward P/E ratio of 12.73 right now. For comparison, its industry has an average Forward P/E of 13.76, which means ARNC is trading at a discount to the group.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 16% 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.
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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