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Here's Why Alcoa (AA) Fell More Than Broader Market

The most recent trading session ended with Alcoa (AA) standing at $25.12, reflecting a -0.48% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.39%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.59%.

The bauxite, alumina and aluminum products company's stock has dropped by 1.17% in the past month, falling short of the Industrial Products sector's gain of 4.21% and the S&P 500's gain of 5.08%.

Analysts and investors alike will be keeping a close eye on the performance of Alcoa in its upcoming earnings disclosure. In that report, analysts expect Alcoa to post earnings of -$0.82 per share. This would mark a year-over-year decline of 17.14%. Alongside, our most recent consensus estimate is anticipating revenue of $2.62 billion, indicating a 1.66% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$2.39 per share and a revenue of $10.67 billion, signifying shifts of -149.48% and -14.3%, respectively, from the last year.

Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% upward. Currently, Alcoa is carrying a Zacks Rank of #4 (Sell).

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 239, finds itself in the bottom 6% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AA in the coming trading sessions, be sure to utilize

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