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Alcoa (AA) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Alcoa (AA - Free Report) closed at $45.50, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 6.18% over the past month. This has lagged the Industrial Products sector's gain of 1.37% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. On that day, Alcoa is projected to report earnings of -$0.79 per share, which would represent a year-over-year decline of 131.6%. Meanwhile, our latest consensus estimate is calling for revenue of $2.61 billion, down 21.86% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $12.4 billion. These results would represent year-over-year changes of -32.5% and +2.02%, respectively.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
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. The Zacks Consensus EPS estimate has moved 2.74% lower within the past month. Alcoa currently has a Zacks Rank of #4 (Sell).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 10.02. This represents a premium compared to its industry's average Forward P/E of 7.13.
Meanwhile, AA's PEG ratio is currently 0.81. 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 3.15 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 169, which puts it in the bottom 33% 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.
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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Alcoa (AA - Free Report) closed at $45.50, marking a -1.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 6.18% over the past month. This has lagged the Industrial Products sector's gain of 1.37% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. On that day, Alcoa is projected to report earnings of -$0.79 per share, which would represent a year-over-year decline of 131.6%. Meanwhile, our latest consensus estimate is calling for revenue of $2.61 billion, down 21.86% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $4.61 per share and revenue of $12.4 billion. These results would represent year-over-year changes of -32.5% and +2.02%, respectively.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
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. The Zacks Consensus EPS estimate has moved 2.74% lower within the past month. Alcoa currently has a Zacks Rank of #4 (Sell).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 10.02. This represents a premium compared to its industry's average Forward P/E of 7.13.
Meanwhile, AA's PEG ratio is currently 0.81. 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 3.15 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 169, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.