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Alcoa (AA) Outpaces Stock Market Gains: What You Should Know
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Alcoa (AA - Free Report) closed the most recent trading day at $35.58, moving +0.65% from the previous trading session. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Coming into today, shares of the bauxite, alumina and aluminum products company had lost 2.19% in the past month. In that same time, the Industrial Products sector gained 4.3%, while the S&P 500 gained 3.44%.
Alcoa will be looking to display strength as it nears its next earnings release. On that day, Alcoa is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 104.49%. Meanwhile, our latest consensus estimate is calling for revenue of $2.65 billion, down 27.18% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $10.87 billion, which would represent changes of -88.61% and -12.71%, respectively, from the prior year.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 30.38% lower. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alcoa is holding a Forward P/E ratio of 64.27. Its industry sports an average Forward P/E of 12.45, so we one might conclude that Alcoa is trading at a premium comparatively.
Meanwhile, AA's PEG ratio is currently 6.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 6.31 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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
Alcoa (AA - Free Report) closed the most recent trading day at $35.58, moving +0.65% from the previous trading session. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Coming into today, shares of the bauxite, alumina and aluminum products company had lost 2.19% in the past month. In that same time, the Industrial Products sector gained 4.3%, while the S&P 500 gained 3.44%.
Alcoa will be looking to display strength as it nears its next earnings release. On that day, Alcoa is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 104.49%. Meanwhile, our latest consensus estimate is calling for revenue of $2.65 billion, down 27.18% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $10.87 billion, which would represent changes of -88.61% and -12.71%, respectively, from the prior year.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 30.38% lower. Alcoa is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alcoa is holding a Forward P/E ratio of 64.27. Its industry sports an average Forward P/E of 12.45, so we one might conclude that Alcoa is trading at a premium comparatively.
Meanwhile, AA's PEG ratio is currently 6.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 6.31 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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.