Dow Today: Alcoa (AA) Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading up 83 points (+0.6%) at 13,577 as of Thursday, Oct 4, 2012, 1:35 p.m. ET. During this time, 418.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.3 million. The NYSE advances/declines ratio sits at 2,102 issues advancing vs. 847 declining with 128 unchanged.
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The Dow component leading the way higher looks to be Alcoa (NYSE: AA), which is sporting a 30-cent gain (+3.4%) bringing the stock to $9.08. This single gain is lifting the Dow Jones Industrial Average by 2.27 points or roughly accounting for 2.7% of the Dow's overall gain. Volume for Alcoa currently sits at 15.4 million shares traded vs. an average daily trading volume of 19 million shares.

Alcoa has a market cap of $9.44 billion and is part of the basic materials sector and metals & mining industry. Shares are up 2.3% year to date as of Wednesday's close. The stock's dividend yield sits at 1.4%.

Alcoa, Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. The company has a P/E ratio of 126.4, above the average metals & mining industry P/E ratio of 110.6 and above the S&P 500 P/E ratio of 17.7.

TheStreet 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 a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

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