Arconic (ARNC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Arconic (ARNC) closed at $26.70, marking a +1.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had gained 4.36% over the past month, outpacing the Basic Materials sector's gain of 0.99% and the S&P 500's gain of 2.25% in that time.
ARNC will be looking to display strength as it nears its next earnings release. In that report, analysts expect ARNC to post earnings of $0.51 per share. This would mark year-over-year growth of 59.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.62 billion, up 2.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.04 per share and revenue of $14.48 billion, which would represent changes of +50% and +3.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for ARNC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% higher. ARNC currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, ARNC currently has a Forward P/E ratio of 12.89. This valuation marks a discount compared to its industry's average Forward P/E of 14.4.
The Mining - Non Ferrous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 222, which puts it in the bottom 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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.