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Alcoa (AA) Gains But Lags Market: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $59.36, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Heading into today, shares of the bauxite, alumina and aluminum products company had gained 17.54% over the past month, outpacing the Industrial Products sector's loss of 3.3% and the S&P 500's gain of 0.39% in that time.
Alcoa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alcoa to post earnings of $1.78 per share. This would mark year-over-year growth of 584.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.19 billion, up 33.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.33 per share and revenue of $12.11 billion, which would represent changes of +645.69% and +30.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.91% lower. Alcoa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 9.37. This valuation marks a premium compared to its industry's average Forward P/E of 8.73.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
To follow AA in the coming trading sessions, be sure to utilize Zacks.com.
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Alcoa (AA) Gains But Lags Market: What You Should Know
Alcoa (AA - Free Report) closed the most recent trading day at $59.36, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Heading into today, shares of the bauxite, alumina and aluminum products company had gained 17.54% over the past month, outpacing the Industrial Products sector's loss of 3.3% and the S&P 500's gain of 0.39% in that time.
Alcoa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alcoa to post earnings of $1.78 per share. This would mark year-over-year growth of 584.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.19 billion, up 33.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.33 per share and revenue of $12.11 billion, which would represent changes of +645.69% and +30.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.91% lower. Alcoa is currently a Zacks Rank #3 (Hold).
In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 9.37. This valuation marks a premium compared to its industry's average Forward P/E of 8.73.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
To follow AA in the coming trading sessions, be sure to utilize Zacks.com.