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Alcoa (AA) closed the most recent trading day at $49.28, moving -0.81% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the bauxite, alumina and aluminum products company had lost 18.64% over the past month, lagging the Industrial Products sector's loss of 11.34% and the S&P 500's loss of 10.02% in that time.
Alcoa will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alcoa to post earnings of $3.71 per share. This would mark year-over-year growth of 148.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.88 billion, up 37% from the year-ago period.
AA's full-year Zacks Consensus Estimates are calling for earnings of $11.61 per share and revenue of $15.05 billion. These results would represent year-over-year changes of +69.99% and +23.81%, respectively.
Investors might also notice recent changes to analyst estimates for Alcoa. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 7.22% lower. Alcoa is currently a Zacks Rank #3 (Hold).
Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 4.24. This valuation marks a discount compared to its industry's average Forward P/E of 5.74.
Investors should also note that AA has a PEG ratio of 0.49 right now. 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 0.49 at yesterday's closing price.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% 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.