We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alcoa (AA) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Alcoa (AA - Free Report) closed at $42.25 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 14.27% over the past month. This has lagged the Industrial Products sector's loss of 7.43% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be July 20, 2022. On that day, Alcoa is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 102.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 33.1% from the year-ago period.
AA's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +29.28% and +18.42%, respectively.
Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 26.09% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 4.84. For comparison, its industry has an average Forward P/E of 5.27, which means Alcoa is trading at a discount to the group.
Investors should also note that AA has a PEG ratio of 0.62 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alcoa (AA) Dips More Than Broader Markets: What You Should Know
Alcoa (AA - Free Report) closed at $42.25 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 14.27% over the past month. This has lagged the Industrial Products sector's loss of 7.43% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be July 20, 2022. On that day, Alcoa is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 102.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 33.1% from the year-ago period.
AA's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +29.28% and +18.42%, respectively.
Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 26.09% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 4.84. For comparison, its industry has an average Forward P/E of 5.27, which means Alcoa is trading at a discount to the group.
Investors should also note that AA has a PEG ratio of 0.62 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.