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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $51.02, moving +1.69% from the previous trading session. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the bauxite, alumina and aluminum products company had lost 5.77% in the past month. In that same time, the Industrial Products sector lost 0.62%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. In that report, analysts expect Alcoa to post earnings of $0.04 per share. This would mark a year-over-year decline of 98.69%. Our most recent consensus estimate is calling for quarterly revenue 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.
It is also important to note the 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alcoa is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Alcoa currently has a Forward P/E ratio of 20.77. This valuation marks a premium compared to its industry's average Forward P/E of 12.42.
Meanwhile, AA's PEG ratio is currently 6.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 6.12 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 32, which puts it in the top 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
Alcoa (AA - Free Report) closed the most recent trading day at $51.02, moving +1.69% from the previous trading session. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the bauxite, alumina and aluminum products company had lost 5.77% in the past month. In that same time, the Industrial Products sector lost 0.62%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. In that report, analysts expect Alcoa to post earnings of $0.04 per share. This would mark a year-over-year decline of 98.69%. Our most recent consensus estimate is calling for quarterly revenue 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.
It is also important to note the 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alcoa is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Alcoa currently has a Forward P/E ratio of 20.77. This valuation marks a premium compared to its industry's average Forward P/E of 12.42.
Meanwhile, AA's PEG ratio is currently 6.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 6.12 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 32, which puts it in the top 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.