Dow Today: Alcoa (AA) Leads The Day Higher, Intel (INTC) Lags

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 down 23.0 points (-0.2%) at 13,560 as of Tuesday, Oct 9, 2012, 9:35 a.m. ET. During this time, 26.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 580.7 million. The NYSE advances/declines ratio sits at 1,356 issues advancing vs. 1,254 declining with 190 unchanged.
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The Dow component leading the way higher looks to be Alcoa (NYSE: AA), which is sporting a 12-cent gain (+1.3%) bringing the stock to $9.24. Volume for Alcoa currently sits at 864,029 shares traded vs. an average daily trading volume of 19 million shares.

Alcoa has a market cap of $9.7 billion and is part of the basic materials sector and metals & mining industry. Shares are up 5.1% year to date as of Monday's close. The stock's dividend yield sits at 1.3%.

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 129.9, above the average metals & mining industry P/E ratio of 113.6 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.

Holding back the Dow today is Intel (Nasdaq: INTC), which is lagging the broader Dow index with a 47-cent decline (-2.1%) bringing the stock to $22.04. This single loss is lowering the Dow Jones Industrial Average by 3.56 points or roughly accounting for 15.5% of the Dow's overall loss. Volume for Intel currently sits at 5.2 million shares traded vs. an average daily trading volume of 40.6 million shares.

Intel has a market cap of $113.47 billion and is part of the technology sector and electronics industry. Shares are down 7.2% year to date as of Monday's close. The stock's dividend yield sits at 4%.

Intel Corporation designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe, and Japan. The company has a P/E ratio of 9.7, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Intel as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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