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Alcoa (AA) Stock Sinks As Market Gains: What You Should Know
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Alcoa (AA - Free Report) closed at $39.16 in the latest trading session, marking a -0.68% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 22.72% over the past month, lagging the Industrial Products sector's loss of 8.68% and the S&P 500's gain of 1.24% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be April 19, 2023. The company is expected to report EPS of -$0.05, down 101.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, down 19.17% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $2.09 per share and revenue of $10.73 billion. These results would represent year-over-year changes of -56.73% and -13.82%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 13.35% lower. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 18.84. This valuation marks a premium compared to its industry's average Forward P/E of 11.39.
Also, we should mention that AA has a PEG ratio of 6.32. 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 6.25 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alcoa (AA) Stock Sinks As Market Gains: What You Should Know
Alcoa (AA - Free Report) closed at $39.16 in the latest trading session, marking a -0.68% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.91%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 22.72% over the past month, lagging the Industrial Products sector's loss of 8.68% and the S&P 500's gain of 1.24% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be April 19, 2023. The company is expected to report EPS of -$0.05, down 101.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, down 19.17% from the prior-year quarter.
AA's full-year Zacks Consensus Estimates are calling for earnings of $2.09 per share and revenue of $10.73 billion. These results would represent year-over-year changes of -56.73% and -13.82%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 13.35% lower. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 18.84. This valuation marks a premium compared to its industry's average Forward P/E of 11.39.
Also, we should mention that AA has a PEG ratio of 6.32. 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 6.25 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.