Yahoo Finance Alcoa (AA) Dips More Than Broader Markets: What You Should Know
Alcoa (AA) closed at $42.46 in the latest trading session, marking a -1.58% move from the prior day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the bauxite, alumina and aluminum products company had lost 19.87% in the past month. In that same time, the Industrial Products sector lost 8.04%, while the S&P 500 lost 9.06%.
Investors will be hoping for strength from Alcoa as it approaches its next earnings release. In that report, analysts expect Alcoa to post earnings of $0.64 per share. This would mark a year-over-year decline of 68.78%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, down 1.71% from the year-ago period.
AA's full-year Zacks Consensus Estimates are calling for earnings of $7.26 per share and revenue of $13.03 billion. These results would represent year-over-year changes of +6.3% and +7.24%, respectively.
It is also important to note the recent changes to analyst estimates for Alcoa. 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.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 5.94 right now. Its industry sports an average Forward P/E of 6.3, so we one might conclude that Alcoa is trading at a discount comparatively.
It is also worth noting that AA currently has a PEG ratio of 0.61. 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 0.61 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 99, putting it in the top 40% 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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