NEW YORK (TheStreet) -- TheStreet Ratings team reiterated a HOLD rating on Alcoa Inc. (AA) , citing stock price performance as a positive and deteriorating net income as a weakness for the company. Alcoa shares were surging on Thursday, up 5.31% to $12.49.
The lightweight metal manufacturer has seen its stock price jump by 42.13% over the past year while exceeding the industry average. However, Alcoa shares have also experienced a sharp decline in EPS over the last two years, dropping to -$2.15 this year from $0.17 the previous year.
TheStreet analysts expect that number to improve as the market does and expects earnings in 2014 to jump to $0.32 from -$2.15.
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TheStreet Ratings team rates ALCOA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: