Dow Today: Alcoa (AA) Lower

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 34.0 points (-0.2%) at 14,831 as of Friday, Apr 12, 2013, 12:35 p.m. ET. During this time, 264.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 598.9 million. The NYSE advances/declines ratio sits at 825 issues advancing vs. 2,080 declining with 130 unchanged.
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Holding back the Dow today is Alcoa (NYSE: AA), which is lagging the broader Dow index with a 12-cent decline (-1.4%) bringing the stock to $8.20. This single loss is lowering the Dow Jones Industrial Average by 0.91 points or roughly accounting for 2.7% of the Dow's overall loss. Volume for Alcoa currently sits at 11.1 million shares traded vs. an average daily trading volume of 18 million shares.

Alcoa has a market cap of $8.89 billion and is part of the basic materials sector and metals & mining industry. Shares are down 4.1% year to date as of Thursday'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, Global Rolled Products, and Engineered Products and Solutions. The company has a P/E ratio of 43.7, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Alcoa as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and generally higher debt management risk.

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