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

Zacks Equity Research

Arconic (ARNC) closed at $25.13 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.71%.

Heading into today, shares of the maker of engineered products for the aerospace and other industries had gained 4.27% over the past month, outpacing the Basic Materials sector's gain of 3.29% and the S&P 500's gain of 1.93% in that time.

Wall Street will be looking for positivity from ARNC as it approaches its next earnings report date. In that report, analysts expect ARNC to post earnings of $0.50 per share. This would mark year-over-year growth of 35.14%. Meanwhile, our latest consensus estimate is calling for revenue of $3.64 billion, up 1.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.88 per share and revenue of $14.34 billion, which would represent changes of +38.24% and +2.35%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ARNC. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 4.74% higher. ARNC is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, ARNC currently has a Forward P/E ratio of 13.39. This valuation marks a discount compared to its industry's average Forward P/E of 15.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 216, 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.

To follow ARNC in the coming trading sessions, be sure to utilize Zacks.com.

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