In the latest trading session, Alcoa (AA - Free Report) closed at $32.79, marking a +0.34% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 12.43% over the past month. This has lagged the Industrial Products sector's loss of 2.2% and the S&P 500's loss of 4.37% in that time.
Wall Street will be looking for positivity from AA as it approaches its next earnings report date. This 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. Meanwhile, our latest consensus estimate is calling for revenue of $3.51 billion, up 10.64% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.67 per share and revenue of $13.51 billion, which would represent changes of +21.93% and +15.91%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for AA. These revisions help to show the ever-changing nature of 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.96% higher. AA is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note AA's current valuation metrics, including its Forward P/E ratio of 8.9. This represents a no noticeable deviation compared to its industry's average Forward P/E of 8.9.
We can also see that AA currently has a PEG ratio of 2.21. 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. AA's industry had an average PEG ratio of 1.24 as of yesterday's close.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 104, putting it in the top 40% 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.