Alcoa (AA - Free Report) closed at $36.92 in the latest trading session, marking a +0.38% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 1.04%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 14.68% over the past month. This has lagged the Industrial Products sector's loss of 10.47% and the S&P 500's loss of 6.28% in that time.
AA will be looking to display strength as it nears its next earnings release, which is expected to be January 16, 2019. The company is expected to report EPS of $0.64, down 38.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.51 billion, up 10.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.72 per share and revenue of $13.51 billion. These totals would mark changes of +23.59% and +15.91%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AA. 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.
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, 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 8.54% lower. AA currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AA is holding a Forward P/E ratio of 9.89. Its industry sports an average Forward P/E of 9.89, so we one might conclude that AA is trading at a no noticeable deviation comparatively.
Meanwhile, AA's PEG ratio is currently 1.11. 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. AA's industry had an average PEG ratio of 1.11 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 46, which puts it in the top 18% 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.