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Alcoa (AA) Gains As Market Dips: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $48.94, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.84%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 4.57% over the past month. This has lagged the Industrial Products sector's loss of 0.06% and the S&P 500's loss of 2% 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 $0.04, down 98.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, down 19.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.42 per share and revenue of $10.52 billion, which would represent changes of -49.9% and -15.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-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. 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.
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 remained stagnant within the past month. 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 19.89. This represents a premium compared to its industry's average Forward P/E of 11.91.
Investors should also note that AA has a PEG ratio of 6.44 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 5.76 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 66, which puts it in the top 27% 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 the most recent trading day at $48.94, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.84%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 4.57% over the past month. This has lagged the Industrial Products sector's loss of 0.06% and the S&P 500's loss of 2% 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 $0.04, down 98.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.65 billion, down 19.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.42 per share and revenue of $10.52 billion, which would represent changes of -49.9% and -15.55%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-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. 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.
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 remained stagnant within the past month. 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 19.89. This represents a premium compared to its industry's average Forward P/E of 11.91.
Investors should also note that AA has a PEG ratio of 6.44 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 5.76 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 66, which puts it in the top 27% 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.