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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, Alcoa (AA - Free Report) closed at $44.87, marking a +1.77% move from the previous day. This move outpaced the S&P 500's daily gain of 1.49%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 0.06%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 10.68% over the past month. This has lagged the Industrial Products sector's loss of 2.15% and the S&P 500's loss of 3.49% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. In that report, analysts expect Alcoa to post earnings of -$0.79 per share. This would mark a year-over-year decline of 131.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, down 21.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.58 per share and revenue of $12.38 billion, which would represent changes of -32.94% and +1.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 3.24% lower within the past month. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 9.62. This represents a premium compared to its industry's average Forward P/E of 7.07.
Meanwhile, AA's PEG ratio is currently 0.78. 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 3.16 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alcoa (AA - Free Report) closed at $44.87, marking a +1.77% move from the previous day. This move outpaced the S&P 500's daily gain of 1.49%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 0.06%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 10.68% over the past month. This has lagged the Industrial Products sector's loss of 2.15% and the S&P 500's loss of 3.49% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. In that report, analysts expect Alcoa to post earnings of -$0.79 per share. This would mark a year-over-year decline of 131.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, down 21.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.58 per share and revenue of $12.38 billion, which would represent changes of -32.94% and +1.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 3.24% lower within the past month. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 9.62. This represents a premium compared to its industry's average Forward P/E of 7.07.
Meanwhile, AA's PEG ratio is currently 0.78. 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 3.16 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.