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Alcoa (AA) Stock Dips While Market Gains: Key Facts

Alcoa (AA) closed at $27.75 in the latest trading session, marking a -0.75% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 2.11%. Meanwhile, the Dow experienced a rise of 1.18%, and the technology-dominated Nasdaq saw an increase of 2.96%.

Shares of the bauxite, alumina and aluminum products company witnessed a loss of 6.05% over the previous month, trailing the performance of the Industrial Products sector with its gain of 5.43% and the S&P 500's gain of 3.08%.

Investors will be eagerly watching for the performance of Alcoa in its upcoming earnings disclosure. On that day, Alcoa is projected to report earnings of -$0.44 per share, which would represent a year-over-year decline of 91.3%. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, down 4.83% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and a revenue of $10.62 billion, representing changes of +124.67% and +0.62%, respectively, from the prior year.

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Investors should also take note of any recent adjustments to analyst estimates for Alcoa. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Alcoa currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 50.15. This signifies a premium in comparison to the average Forward P/E of 13.55 for its industry.

Meanwhile, AA's PEG ratio is currently 1.27. 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 2.88 as of yesterday's close.

The Metal Products - Distribution industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 6, this industry ranks in the top 3% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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