Alcoa (AA) Flagged As Today's Pre-Market Laggard
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Alcoa as such a stock due to the following factors:
- AA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $297.9 million.
- AA traded 111,814 shares today in the pre-market hours as of 8:22 AM.
- AA is down 2.6% today from yesterday's close.
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More details on AA:
Alcoa Inc. produces and manages primary aluminum, fabricated aluminum, and alumina worldwide. The company operates through four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The stock currently has a dividend yield of 0.8%. AA has a PE ratio of 69.5. Currently there are 8 analysts that rate Alcoa a buy, 1 analyst rates it a sell, and 6 rate it a hold.
The average volume for Alcoa has been 19.9 million shares per day over the past 30 days. Alcoa has a market cap of $17.8 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.72 and a short float of 2.8% with 1.43 days to cover. Shares are down 8.9% year-to-date as of the close of trading on Thursday.
Analysis:
rates Alcoa as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 14.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ALCOA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ALCOA INC turned its bottom line around by earning $0.19 versus -$2.15 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 106.8% when compared to the same quarter one year prior, rising from -$2,339.00 million to $159.00 million.
- Net operating cash flow has significantly increased by 58.47% to $1,458.00 million when compared to the same quarter last year. In addition, ALCOA INC has also vastly surpassed the industry average cash flow growth rate of -57.49%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Alcoa Ratings Report.
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