Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Alcoa ( AA) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Alcoa as such a stock due to the following factors:
- AA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $421.2 million.
- AA traded 57,481 shares today in the pre-market hours as of 7:47 AM.
- AA is up 2.8% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AA with the Ticky from Trade-Ideas. See the FREE profile for AA NOW at Trade-Ideas More details on AA: 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 stock currently has a dividend yield of 1.1%. Currently there are 2 analysts that rate Alcoa a buy, 4 analysts rate it a sell, and 7 rate it a hold. The average volume for Alcoa has been 25.6 million shares per day over the past 30 days. Alcoa has a market cap of $11.3 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of 1.86 and a short float of 11.1% with 3.28 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Alcoa as a hold. Among the primary strengths of the company is its solid stock performance, considering both the consistency and magnitude of the price movement over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
- AA, with its decline in revenue, slightly underperformed the industry average of 3.9%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- ALCOA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ALCOA INC swung to a loss, reporting -$2.15 versus $0.17 in the prior year. This year, the market expects an improvement in earnings ($0.30 versus -$2.15).
- The gross profit margin for ALCOA INC is rather low; currently it is at 15.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -41.88% is significantly below that of the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 1066.5% when compared to the same quarter one year ago, falling from $242.00 million to -$2,339.00 million.
- You can view the full Alcoa Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.