Alcoa Inc (AA): Today's Featured Metals & Mining Laggard

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.

Alcoa ( AA) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day down 1.8%. By the end of trading, Alcoa fell 12 cents (-1.4%) to $8.31 on light volume. Throughout the day, 10.9 million shares of Alcoa exchanged hands as compared to its average daily volume of 17.6 million shares. The stock ranged in price between $8.30-$8.44 after having opened the day at $8.36 as compared to the previous trading day's close of $8.43. Other companies within the Metals & Mining industry that declined today were: Hi-Crush Partners ( HCLP), down 26.3%, AK Steel Holding Corporation ( AKS), down 17.6%, China Gengsheng Minerals ( CHGS), down 17%, and Jaguar Mining ( JAG), down 16.8%.
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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. Alcoa has a market cap of $9 billion and is part of the basic materials sector. The company has a P/E ratio of -40.1, below the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Monday. Currently there are five analysts that rate Alcoa a buy, three analysts rate it a sell, and seven rate it a hold.

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 deteriorating net income, disappointing return on equity and poor profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).

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