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Tale of the Tape

Why Alcoa (AA) Could Be Positioned for a Surge?
April 14, 2014

AA

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Alcoa Inc. (AA - Analyst Report), a mining company, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on AA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames, suggesting that Alcoa could be a solid choice for investors.

Current Quarter Estimates for AA

In the past 30 days, 5 estimates have gone higher for Alcoa while 2 have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 11 cents a share 30 days ago, to 12 cents today, a move of 9%.

Current Year Estimates for AA

Meanwhile, Alcoa’s current year figures are also looking quite promising, with 11 estimates moving higher in the past month, compared to 1 lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 36 cents per share 30 days ago to 45 cents per share today, an increase of 25%.

Bottom Line

The stock has also started to move higher lately, adding 5.73% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 (Buy) stock to profit in the near future.

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ALCOA INC (AA - Analyst Report): Free Stock Analysis Report


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