In the latest trading session, Alcoa (AA) closed at $47.89, marking a -1.28% move from the previous day. This move lagged the S&P 500's daily loss of 0.03%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the bauxite, alumina and aluminum products company had gained 17.15% in the past month. In that same time, the Industrial Products sector gained 13.47%, while the S&P 500 gained 6.23%.
Alcoa will be looking to display strength as it nears its next earnings release. On that day, Alcoa is projected to report earnings of -$0.67 per share, which would represent a year-over-year decline of 126.8%. Our most recent consensus estimate is calling for quarterly revenue of $2.65 billion, down 20.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.74 per share and revenue of $12.44 billion, which would represent changes of -30.6% and +2.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Alcoa. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Alcoa currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alcoa is holding a Forward P/E ratio of 10.23. This represents a premium compared to its industry's average Forward P/E of 7.37.
We can also see that AA currently has a PEG ratio of 0.83. 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. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 3.01 based on yesterday's closing prices.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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