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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Alcoa (AA - Free Report) closed at $42.63, marking a +1.28% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 35.75% over the past month. This has lagged the Industrial Products sector's loss of 12.6% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. This is expected to be July 20, 2022. In that report, analysts expect Alcoa to post earnings of $3.26 per share. This would mark year-over-year growth of 118.79%. Meanwhile, our latest consensus estimate is calling for revenue of $3.77 billion, up 33.1% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $10.25 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +50.07% and +18.42%, respectively.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 18.14% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 4.11. This valuation marks a discount compared to its industry's average Forward P/E of 5.36.
Investors should also note that AA has a PEG ratio of 0.47 right now. 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. AA's industry had an average PEG ratio of 0.47 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 91, putting it in the top 37% 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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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Alcoa (AA - Free Report) closed at $42.63, marking a +1.28% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 35.75% over the past month. This has lagged the Industrial Products sector's loss of 12.6% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. This is expected to be July 20, 2022. In that report, analysts expect Alcoa to post earnings of $3.26 per share. This would mark year-over-year growth of 118.79%. Meanwhile, our latest consensus estimate is calling for revenue of $3.77 billion, up 33.1% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $10.25 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +50.07% and +18.42%, respectively.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 18.14% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 4.11. This valuation marks a discount compared to its industry's average Forward P/E of 5.36.
Investors should also note that AA has a PEG ratio of 0.47 right now. 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. AA's industry had an average PEG ratio of 0.47 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 91, putting it in the top 37% 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.