Alcoa (AA - Free Report) closed at $35.71 in the latest trading session, marking a -0.97% move from the prior day. This change was narrower than the S&P 500's 2.06% loss on the day. Meanwhile, the Dow lost 2.13%, and the Nasdaq, a tech-heavy index, lost 1.25%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 14.18% over the past month, lagging the Industrial Products sector's loss of 6.24% and the S&P 500's loss of 3.01% in that time.
Investors will be hoping for strength from AA as it approaches its next earnings release, which is expected to be October 17, 2018. The company is expected to report EPS of $0.42, down 41.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.40 billion, up 14.68% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.88 per share and revenue of $13.65 billion, which would represent changes of +28.9% and +17.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AA. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.5% lower. AA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AA is currently trading at a Forward P/E ratio of 9.3. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 9.3.
Meanwhile, AA's PEG ratio is currently 2.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 1.69 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 114, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.