We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alcoa (AA) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Alcoa (AA - Free Report) closed the most recent trading day at $40.08, moving -0.37% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 16.03% over the past month. This has lagged the Industrial Products sector's loss of 2.89% and the S&P 500's loss of 3.29% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2022. On that day, Alcoa is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 85.85%. Meanwhile, our latest consensus estimate is calling for revenue of $2.99 billion, down 3.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $12.86 billion. These totals would mark changes of -11.13% and +5.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-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.
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. The Zacks Consensus EPS estimate has moved 16.45% lower within the past month. Alcoa is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 6.63 right now. Its industry sports an average Forward P/E of 6.67, so we one might conclude that Alcoa is trading at a discount comparatively.
It is also worth noting that AA currently has a PEG ratio of 0.68. 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. The Metal Products - Distribution was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alcoa (AA) Dips More Than Broader Markets: What You Should Know
Alcoa (AA - Free Report) closed the most recent trading day at $40.08, moving -0.37% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 16.03% over the past month. This has lagged the Industrial Products sector's loss of 2.89% and the S&P 500's loss of 3.29% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2022. On that day, Alcoa is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 85.85%. Meanwhile, our latest consensus estimate is calling for revenue of $2.99 billion, down 3.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $12.86 billion. These totals would mark changes of -11.13% and +5.8%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-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.
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. The Zacks Consensus EPS estimate has moved 16.45% lower within the past month. Alcoa is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 6.63 right now. Its industry sports an average Forward P/E of 6.67, so we one might conclude that Alcoa is trading at a discount comparatively.
It is also worth noting that AA currently has a PEG ratio of 0.68. 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. The Metal Products - Distribution was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% 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.