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Alcoa (AA) Gains As Market Dips: What You Should Know
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Alcoa (AA - Free Report) closed at $62.41 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.24%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 4.55% over the past month. This has lagged the Industrial Products sector's loss of 0.95% and the S&P 500's gain of 0.32% in that time.
Alcoa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.66, up 145.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, up 34.3% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.17 per share and revenue of $14.78 billion. These totals would mark changes of +92.83% and +21.59%, respectively, from last year.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.68% lower. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 4.69 right now. This represents a discount compared to its industry's average Forward P/E of 6.97.
Meanwhile, AA's PEG ratio is currently 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 0.54 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alcoa (AA) Gains As Market Dips: What You Should Know
Alcoa (AA - Free Report) closed at $62.41 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq gained 0.24%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 4.55% over the past month. This has lagged the Industrial Products sector's loss of 0.95% and the S&P 500's gain of 0.32% in that time.
Alcoa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.66, up 145.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, up 34.3% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.17 per share and revenue of $14.78 billion. These totals would mark changes of +92.83% and +21.59%, respectively, from last year.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.68% lower. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 4.69 right now. This represents a discount compared to its industry's average Forward P/E of 6.97.
Meanwhile, AA's PEG ratio is currently 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 0.54 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.