Trade-Ideas LLC identified

Alcoa

(

AA

) 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 $196.2 million.
  • AA traded 12,660 shares today in the pre-market hours as of 7:36 AM.
  • AA is up 2.5% today from Friday's close.

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. 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 1.2%. 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 23.3 million shares per day over the past 30 days. Alcoa has a market cap of $13.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 0.64 and a short float of 9.6% with 5.93 days to cover. Shares are down 5% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alcoa as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. 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:

  • The debt-to-equity ratio is somewhat low, currently at 0.74, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that AA's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
  • Despite the weak revenue results, AA has significantly outperformed against the industry average of 45.0%. 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.
  • 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.