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Alcoa (AA) Gains But Lags Market: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $46.36, moving +1.91% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 5.02%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 3.79% over the past month, lagging the Industrial Products sector's loss of 2.04% and outpacing the S&P 500's loss of 4.61% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be January 18, 2023. In that report, analysts expect Alcoa to post earnings of -$0.82 per share. This would mark a year-over-year decline of 132.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.59 billion, down 22.37% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate has moved 7.99% lower within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 16.82. This valuation marks a premium compared to its industry's average Forward P/E of 9.94.
Investors should also note that AA has a PEG ratio of 1.37 right now. 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 industry currently had an average PEG ratio of 3.27 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alcoa (AA) Gains But Lags Market: What You Should Know
Alcoa (AA - Free Report) closed the most recent trading day at $46.36, moving +1.91% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 5.02%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 3.79% over the past month, lagging the Industrial Products sector's loss of 2.04% and outpacing the S&P 500's loss of 4.61% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be January 18, 2023. In that report, analysts expect Alcoa to post earnings of -$0.82 per share. This would mark a year-over-year decline of 132.8%. Meanwhile, our latest consensus estimate is calling for revenue of $2.59 billion, down 22.37% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. The Zacks Consensus EPS estimate has moved 7.99% lower within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 16.82. This valuation marks a premium compared to its industry's average Forward P/E of 9.94.
Investors should also note that AA has a PEG ratio of 1.37 right now. 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 industry currently had an average PEG ratio of 3.27 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.