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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 $40.60, moving +3.92% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%.

In that report, analysts expect AA to post earnings of $1.03 per share. This would mark year-over-year growth of 5250%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 18.06% from the year-ago period.

AA's full-year Zacks Consensus Estimates are calling for earnings of $4.20 per share and revenue of $10.48 billion. These results would represent year-over-year changes of +462.07% and +12.87%, respectively.

It is also important to note the recent changes to analyst estimates for AA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 26.38% higher. AA is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, AA is holding a Forward P/E ratio of 9.3. This valuation marks a discount compared to its industry's average Forward P/E of 15.8.

Investors should also note that AA has a PEG ratio of 0.19 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 1.06 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 29, putting it in the top 12% 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.

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