Alcoa (AA) Stock Sinks As Market Gains: What You Should Know

Alcoa (AA) closed the most recent trading day at $37.42, moving -1.47% from the previous trading session. This change lagged the S&P 500's daily gain of 0.47%.

Heading into today, shares of the bauxite, alumina and aluminum products company had lost 3.87% over the past month, lagging the Industrial Products sector's loss of 1.84% and the S&P 500's loss of 0.12% in that time.

AA will be looking to display strength as it nears its next earnings release. On that day, AA is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 6600%. Our most recent consensus estimate is calling for quarterly revenue of $2.58 billion, up 20.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.65 per share and revenue of $10.58 billion, which would represent changes of +500.86% and +13.89%, respectively, from the prior year.

Investors might also notice 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 5.76% higher. AA is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note AA's current valuation metrics, including its Forward P/E ratio of 8.17. Its industry sports an average Forward P/E of 15.79, so we one might conclude that AA is trading at a discount comparatively.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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