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 15.0 points at 15,339 as of Monday, May 20, 2013, 1:35 p.m. ET. During this time, 279.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 596.8 million. The NYSE advances/declines ratio sits at 1,735 issues advancing vs. 1,216 declining with 122 unchanged.
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The Dow component leading the way higher looks to be
Alcoa (NYSE:
AA), which is sporting a nine-cent gain (+1.1%) bringing the stock to $8.70. Volume for Alcoa currently sits at 9.9 million shares traded vs. an average daily trading volume of 18.1 million shares.
Alcoa has a market cap of $9.09 billion and is part of the basic materials sector and metals & mining industry. Shares are down 0.8% year to date as of Friday'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 38.6, above the S&P 500 P/E ratio of 17.7.
TheStreet Ratings rates Alcoa as a
buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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