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Alcoa (AA) Stock Moves -0.07%: What You Should Know

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In the latest trading session, Alcoa (AA - Free Report) closed at $29.85, marking a -0.07% move from the previous day. This change was narrower than the S&P 500's 0.65% loss on the day. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 1.16%.

Coming into today, shares of the bauxite, alumina and aluminum products company had gained 7.8% in the past month. In that same time, the Industrial Products sector gained 5.88%, while the S&P 500 gained 3.4%.

The upcoming earnings release of Alcoa will be of great interest to investors. The company is predicted to post an EPS of -$0.44, indicating a 91.3% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.54 billion, indicating a 4.83% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and a revenue of $10.62 billion, representing changes of +123.79% and +0.62%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alcoa. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.04% lower. At present, Alcoa boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Alcoa currently has a Forward P/E ratio of 55.83. This denotes a premium relative to the industry's average Forward P/E of 13.59.

It's also important to note that AA currently trades at a PEG ratio of 1.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AA's industry had an average PEG ratio of 2.94 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 18, which puts it in the top 8% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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