Unusual Social Activity Around Alcoa (AA) Today
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 an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Alcoa as such a stock due to the following factors:
- AA has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 42.42 mentions/day.
- AA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $251.6 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AA with the Ticky from Trade-Ideas. See the FREE profile for AA NOW at Trade-Ideas
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 71.2. Currently there are 9 analysts that rate Alcoa a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Alcoa has been 19.6 million shares per day over the past 30 days. Alcoa has a market cap of $18.3 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 1.71 days to cover. Shares are down 3.9% year-to-date as of the close of trading on Tuesday.
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 2.5%. 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 -57.24%.
- Powered by its strong earnings growth of 105.02% and other important driving factors, this stock has surged by 25.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively 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.
null