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 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 $178.3 million.
- AA traded 33,600 shares today in the pre-market hours as of 7:49 AM.
- AA is up 3.2% today from yesterday's close.
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More details on AA:
Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The stock currently has a dividend yield of 1.3%. AA has a PE ratio of 32.3. Currently there are 3 analysts that rate Alcoa a buy, 4 analysts rate it a sell, and 6 rate it a hold.
The average volume for Alcoa has been 27.0 million shares per day over the past 30 days. Alcoa has a market cap of $9.7 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.84 and a short float of 12.1% with 6.92 days to cover. Shares are up 5.1% year to date as of the close of trading on Thursday.
rates Alcoa as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and generally higher debt management risk.
Highlights from the ratings report include:
- 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 116.8% when compared to the same quarter one year prior, rising from -$143.00 million to $24.00 million.
- ALCOA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALCOA INC reported lower earnings of $0.17 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.35 versus $0.17).
- Net operating cash flow has decreased to $214.00 million or 18.63% when compared to the same quarter last year. Despite a decrease in cash flow ALCOA INC is still fairing well by exceeding its industry average cash flow growth rate of -29.05%.
- The gross profit margin for ALCOA INC is rather low; currently it is at 16.77%. Regardless of AA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AA's net profit margin of 0.41% is significantly lower than the industry average.
- You can view the full Alcoa Ratings Report.