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Arconic (ARNC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
Xilinx (XLNX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Arconic (ARNC) closed at $23.54 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 1.66%.

Prior to today's trading, shares of the maker of engineered products for the aerospace and other industries had gained 6.56% over the past month. This has outpaced the Basic Materials sector's loss of 1.59% and the S&P 500's loss of 0.08% in that time.

Investors will be hoping for strength from ARNC as it approaches its next earnings release. The company is expected to report EPS of $0.47, up 27.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, up 2.04% from the year-ago period.

ARNC's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $14.43 billion. These results would represent year-over-year changes of +32.35% and +2.94%, respectively.

It is also important to note the recent changes to analyst estimates for ARNC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.09% 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 13.11 right now. This valuation marks a discount compared to its industry's average Forward P/E of 13.96.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 15% 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.

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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