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Alcoa (AA) Gains But Lags Market: What You Should Know
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In the latest trading session, Alcoa (AA - Free Report) closed at $33.93, marking a +0.5% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the bauxite, alumina and aluminum products company had gained 3.24% over the past month, lagging the Industrial Products sector's gain of 10.67% and the S&P 500's gain of 4.67% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2023. The company is expected to report EPS of -$0.50, down 118.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.62 billion, down 28.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $10.72 billion, which would represent changes of -98.96% and -13.89%, respectively, from the prior year.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 94.3% lower within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 750.22. For comparison, its industry has an average Forward P/E of 12.86, which means Alcoa is trading at a premium to the group.
Investors should also note that AA has a PEG ratio of 72.98 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. The Metal Products - Distribution industry currently had an average PEG ratio of 40.36 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 112, which puts it in the top 45% 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) Gains But Lags Market: What You Should Know
In the latest trading session, Alcoa (AA - Free Report) closed at $33.93, marking a +0.5% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Heading into today, shares of the bauxite, alumina and aluminum products company had gained 3.24% over the past month, lagging the Industrial Products sector's gain of 10.67% and the S&P 500's gain of 4.67% in that time.
Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2023. The company is expected to report EPS of -$0.50, down 118.73% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.62 billion, down 28.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $10.72 billion, which would represent changes of -98.96% and -13.89%, respectively, from the prior year.
Any recent changes to analyst estimates for Alcoa should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 94.3% lower within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Alcoa currently has a Forward P/E ratio of 750.22. For comparison, its industry has an average Forward P/E of 12.86, which means Alcoa is trading at a premium to the group.
Investors should also note that AA has a PEG ratio of 72.98 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. The Metal Products - Distribution industry currently had an average PEG ratio of 40.36 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 112, which puts it in the top 45% 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.