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Alcoa (AA) Stock Moves -1.19%: What You Should Know

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Alcoa (AA - Free Report) closed at $49.18 in the latest trading session, marking a -1.19% move from the prior day. This change was narrower than the S&P 500's 1.3% loss on the day.

Heading into today, shares of the bauxite, alumina and aluminum products company had gained 5.42% over the past month, outpacing the Industrial Products sector's loss of 6.26% and the S&P 500's loss of 3.58% in that time.

Investors will be hoping for strength from AA as it approaches its next earnings release, which is expected to be October 14, 2021. On that day, AA is projected to report earnings of $1.76 per share, which would represent year-over-year growth of 250.43%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, up 22.81% from the prior-year quarter.

AA's full-year Zacks Consensus Estimates are calling for earnings of $6.23 per share and revenue of $11.94 billion. These results would represent year-over-year changes of +637.07% and +28.57%, respectively.

Investors might also notice recent changes to analyst estimates for AA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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 has moved 27.32% higher. AA currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, AA is currently trading at a Forward P/E ratio of 7.99. For comparison, its industry has an average Forward P/E of 9.46, which means AA is trading at a discount to the group.

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 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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