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Alcoa (AA) Stock Sinks As Market Gains: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $44.59, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 6.76% over the past month, lagging the Industrial Products sector's loss of 5.79% and the S&P 500's loss of 6.68% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. On that day, Alcoa is projected to report earnings of $0.04 per share, which would represent 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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alcoa is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 18.51 right now. This represents a premium compared to its industry's average Forward P/E of 11.93.
Investors should also note that AA has a PEG ratio of 5.99 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 5.71 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
To follow AA in the coming trading sessions, be sure to utilize Zacks.com.
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Alcoa (AA) Stock Sinks As Market Gains: What You Should Know
Alcoa (AA - Free Report) closed the most recent trading day at $44.59, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 6.76% over the past month, lagging the Industrial Products sector's loss of 5.79% and the S&P 500's loss of 6.68% in that time.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. On that day, Alcoa is projected to report earnings of $0.04 per share, which would represent 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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alcoa is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 18.51 right now. This represents a premium compared to its industry's average Forward P/E of 11.93.
Investors should also note that AA has a PEG ratio of 5.99 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 5.71 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.
To follow AA in the coming trading sessions, be sure to utilize Zacks.com.