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

Zacks Equity Research

In the latest trading session, Arconic (ARNC) closed at $26, marking a -0.42% move from the previous day. This change lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.75%.

Heading into today, shares of the maker of engineered products for the aerospace and other industries had gained 1.16% over the past month, lagging the Basic Materials sector's gain of 5.07% and the S&P 500's gain of 3.44% in that time.

Investors will be hoping for strength from ARNC as it approaches its next earnings release. In that report, analysts expect ARNC to post earnings of $0.51 per share. This would mark year-over-year growth of 59.38%. Meanwhile, our latest consensus estimate is calling for revenue of $3.62 billion, up 2.79% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $14.48 billion, which would represent changes of +50% and +3.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for ARNC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ARNC is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note ARNC's current valuation metrics, including its Forward P/E ratio of 12.8. This valuation marks a discount compared to its industry's average Forward P/E of 16.34.

The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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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