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Alcoa (AA) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Alcoa (AA) closed at $49.22, marking a -0.57% move from the previous day. This change lagged the S&P 500's 0.23% gain on the day.

Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 9.39% over the past month. This has outpaced the Industrial Products sector's loss of 1.54% and the S&P 500's gain of 0.65% in that time.

Wall Street will be looking for positivity from AA as it approaches its next earnings report date. On that day, AA is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 217.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.8 billion, up 18.37% from the year-ago period.

AA's full-year Zacks Consensus Estimates are calling for earnings of $5.08 per share and revenue of $11.34 billion. These results would represent year-over-year changes of +537.93% and +22.15%, respectively.

It is also important to note the recent changes to analyst estimates for AA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 3.97% higher within the past month. AA is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AA has a Forward P/E ratio of 9.74 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.5.

The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.


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