Trade-Ideas: Alcoa (AA) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified Alcoa (AA) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Alcoa

(

AA

) as a post-market leader 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 $254.8 million.
  • AA is up 3.3% today from today's close.

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More details on AA:

Alcoa Inc. engages in engineering and manufacturing lightweight metals worldwide. The company operates through five segments: Alumina, Primary Metals, Global Rolled Products, Engineered Products and Solutions, and Transport and Construction Solutions. The stock currently has a dividend yield of 1.3%. Currently there are 7 analysts that rate Alcoa a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Alcoa has been 23.7 million shares per day over the past 30 days. Alcoa has a market cap of $12.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.60 and a short float of 9.5% with 5.12 days to cover. Shares are down 0.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alcoa as a

hold

. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

  • Despite the weak revenue results, AA has significantly outperformed against the industry average of 45.8%. Since the same quarter one year prior, revenues fell by 15.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Metals & Mining industry average, but is less than that of the S&P 500. The net income has significantly decreased by 91.8% when compared to the same quarter one year ago, falling from $195.00 million to $16.00 million.
  • ALCOA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ALCOA INC swung to a loss, reporting -$0.29 versus $0.19 in the prior year. This year, the market expects an improvement in earnings ($0.37 versus -$0.29).
  • The gross profit margin for ALCOA INC is rather low; currently it is at 18.37%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has significantly decreased to -$430.00 million or 145.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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