NEW YORK (TheStreet) -- Alcoa (AA) - Get Report shares are up 0.87% to $12.81 in trading on Monday after the company announced plans to close the remaining 74,000 metric tons of capacity at its Sao Luis smelter in Brazil as increasing costs and falling metals prices continue to hurt the company's bottom line.

The company said that it expects to take a first quarter restructuring related charge of between $10 million and $15 million, or 1 cent per share, and by the time operations are stopped at the Sao Luis plant on April 15 the company will have idled 740,000 metric tons or 21% of its smelting capacity, according to Reuters.

The company's decision to close the plant is aligned with its previously announced plans to evaluate upstream capacity for possible cuts.

Real Money Pro's Gary Morrow blogged about Alcoa last week, saying:

Alcoa (AA) has been a real dog since Feb. 9. The stock got slammed that day (-5.5%) after a J.P. Morgan downgrade (to neutral from overweight). AA attempted to hold near the 200-day moving average in the immediate aftermath but after a week and a half of tight range action the bottom fell out again. On Feb. 25, AA took another big hit, this time on heavy trading. The stock dropped over 5% again that day while a very bearish confluence of moving averages formed just overhead.

The release of this extensive pressure has been overwhelming. Earlier this month, AA hit a new 2015 low, just a few days prior to news of the RTI International acquisition. On this news, the shares dropped another 5%, this time on extremely heavy trading. AA fell below the major low put in on Oct. 15 and has been drifting steadily lower since. Total loss since the Feb. 9 downside gap has now stretched to 22%.

TheStreet Ratings team rates ALCOA INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCOA INC (AA) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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 increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth greatly exceeded the industry average of 18.7%. 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 ($1.10 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 -45.85%.
• Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 analysis from the report here: AA Ratings Report

Must Read:

Warren Buffett's Top 25 Stocks for 2015