Alcoa (AA) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Performance - Alcoa's stock closed at $26.32, reflecting a -1.42% change from the previous session, which is less than the S&P 500's daily loss of 0.17% [1] - Over the past month, Alcoa's shares have decreased by 12.77%, underperforming the Industrial Products sector's gain of 5.62% and the S&P 500's gain of 3.98% [1] - The upcoming earnings disclosure is anticipated to show an EPS of -$0.25, an 8.7% decline compared to the same quarter last year, with expected revenue of $2.54 billion, a 4.83% drop year-over-year [1] Earnings Estimates - For the entire fiscal year, the Zacks Consensus Estimates project earnings of $0.26 per share and revenue of $10.62 billion, representing increases of +111.45% and +0.62% from the prior year [2] - Recent modifications to analyst estimates for Alcoa indicate near-term business trends, with positive revisions seen as a favorable sign for the company's outlook [2] Valuation Metrics - Alcoa has a Zacks Rank of 3 (Hold), with a notable 53.96% fall in the Zacks Consensus EPS estimate over the past month [3] - The company's Forward P/E ratio stands at 104.03, significantly higher than the industry average of 13.36 [3] - Alcoa's PEG ratio is 2.63, compared to the Metal Products - Distribution industry's average PEG ratio of 3.63 [3] Industry Overview - The Metal Products - Distribution industry, part of the Industrial Products sector, holds a Zacks Industry Rank of 7, placing it in the top 3% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]