Core Points - Century Aluminum Company has extended its power agreement with Santee Cooper to ensure a stable power supply for its Mt. Holly smelter until 2031, facilitating the restart of idle capacity [1][2] - The company plans to invest $50 million to restart idle capacity, which will increase production by 50,000 metric tons and boost overall U.S. aluminum output by 10 percent [3] - The expansion is expected to create over 100 new jobs and allow the plant to operate at full capacity by early summer 2026, a level not seen since 2015 [3] Company Plans and Economic Impact - The Mt. Holly smelter, when fully operational, is projected to contribute approximately $900 million annually to South Carolina's economy, with new jobs offering an average wage of $125,000 [5] - The restart initiative is supported by recent increases in Section 232 tariffs, reflecting the administration's backing for the domestic aluminum industry [4] - Century Aluminum attributes its success to collaboration with Santee Cooper, with final restart details pending confirmation of economic incentives from Berkeley County and the state of South Carolina [6][8]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for profitable short-term investing, highlighting Century Aluminum (CENX) as a strong candidate for trend investing due to its significant price increases and favorable fundamentals [1][2][4]. Group 1: Stock Performance - Century Aluminum (CENX) has experienced a solid price increase of 58% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also seen a price increase of 35.4% over the last four weeks, suggesting that the upward trend is still intact [5]. - CENX is currently trading at 95.8% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - CENX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has shown an impressive track record, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like CENX that are on an uptrend supported by strong fundamentals [3]. - In addition to CENX, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The article suggests that successful stock-picking strategies should be backed by historical performance data, which can be analyzed using the Zacks Research Wizard [9].

Core Viewpoint - Alcoa has experienced a rebound in 2025 due to rising aluminum prices and tighter global supply, with shares moving back toward the mid-$30s, although uncertainties remain regarding its valuation and earnings potential [3][10]. Revenue & Earnings Power - In 2024, Alcoa generated revenues of approximately $11.7 billion, with EBITDA close to $1.5 billion and net income just shy of $500 million, reflecting a decline from pandemic highs as aluminum prices moderated to around $2,300/tonne [4]. - Conditions improved in 2025, with aluminum prices around $2,400–$2,500/tonne, leading to Q2 2025 revenues of about $3.2 billion, EBITDA of around $480 million, and net income of $180 million ($0.95/share) [5]. Cost Structure and Market Conditions - Alcoa's all-in sustaining smelting costs are near $2,050/tonne, indicating potential for earnings and free cash flow growth if market conditions tighten, especially with ongoing Chinese restrictions on high-emission smelting [6]. Valuation Multiples - With a recent share price around $34, Alcoa has a market capitalization of approximately $8.8 billion, trading at about 12–13x trailing earnings and an EV/EBITDA multiple of approximately 5.5x, consistent with historical averages but lower than competitors like Norsk Hydro [7]. Dividend and Shareholder Returns - Alcoa's dividend yield is around 1.2%, supported by a conservative payout ratio and a flexible buyback strategy, with annual free cash flow potential exceeding $800 million at current price levels [8]. Balance Sheet Strength - Alcoa has net debt of about $1.2 billion, manageable compared to over $1.5 billion in EBITDA, allowing for investments in growth and green initiatives, including low-carbon smelting technology and expansions in bauxite/alumina [9]. Market Outlook - The current valuation suggests a balanced outlook for Alcoa, with limited upside if aluminum prices remain around $2,400–$2,500/tonne, while a rise toward $2,800–$3,000/tonne could potentially double EBITDA and justify a re-rating into the $45–50/share range [10]. - Alcoa is viewed as a high-beta play on aluminum prices, with cost discipline and sustainability investments providing support, but the primary factor remains the supply-demand equilibrium of the metal [11].

Core Insights - The U.S. is initiating investigations into unfair practices by several countries regarding the screening of American films, which may lead to a 100% tariff on Hollywood movies [2][3][5] - The U.S. Trade Representative highlighted the need for tariffs on various sectors to control trade deficits and reshore manufacturing for economic and national security reasons [10][18] - The average tariff on China is currently around 55%, with a 30% reduction in the trade deficit reported this year [18][26] Tariff Details - New tariffs include 100% on pharmaceuticals, 50% on kitchen cabinets, 25% on heavy trucks, and 30% on upholstered furniture [7][10] - The U.S. has two tariff programs: reciprocal tariffs based on trade surpluses and sectoral tariffs aimed at specific industries [8][10] - The U.S. is generating approximately $300 billion in tariff revenues annually, with minimal evidence of price increases for goods due to these tariffs [20][21] International Relations - Ongoing discussions with China focus on securing government approval for commercial deals, particularly regarding TikTok [16][19] - The U.S. is engaging with Southeast Asian countries to finalize formal trade deals, with a presidential visit to Asia planned for the end of October [22][23] - The U.S. Trade Representative emphasized the importance of maintaining stable trade relations with China while avoiding economic coercion [18][19]

Core Viewpoint - Alcoa has decided to permanently close its Kwinana alumina refinery in Western Australia due to various operational and market challenges, which will significantly impact its global refining capacity [1][3]. Group 1: Closure Details - The Kwinana refinery has an annual capacity of 2.2 million tonnes, and its closure will reduce Alcoa's global consolidated refining capacity to 11.7 million tonnes [1]. - The closure process will lead to a decrease in employment from approximately 220 people currently employed at the refinery [2]. Group 2: Financial Implications - Alcoa is expected to incur restructuring and related charges of about $890 million, which includes $623 million after-tax, due to the permanent closure [5]. - Cash outlays for the closure are projected to be around $600 million over six years, with $75 million allocated for Q4 2025 [5]. - Additionally, adjustments to asset retirement obligations in Brazil will result in a charge of approximately $50 million after-tax in Q3 2025 [6]. Group 3: Operational Context - The decision to close the Kwinana facility was influenced by factors such as the age of the facility, operating costs, market conditions, and challenges related to bauxite grade [1]. - Alcoa's port and rail facilities at Kwinana will remain operational, along with other significant operations in Western Australia and Victoria [2]. - The company plans to collaborate with the Western Australia State Government on potential future land use options for the site [4].

Core Viewpoint - Alcoa has announced the permanent closure of its Kwinana alumina refinery in Western Australia due to various factors including the facility's age, scale and operating costs, market conditions, and challenges related to bauxite grade [4] Company Summary - The Kwinana alumina refinery's closure is attributed to its age and the high operating costs associated with maintaining the facility [4] - Market conditions have also played a significant role in the decision to close the refinery, indicating a challenging environment for alumina production [4] - The challenges related to bauxite grade further contributed to the decision, highlighting potential issues in sourcing quality raw materials for alumina production [4]

Core Viewpoint - Alcoa Corporation has announced the permanent closure of its Kwinana alumina refinery in Western Australia following a production curtailment in June 2024, driven by multiple factors including the age of the facility [1] Company Summary - The decision to close the Kwinana refinery comes after extensive studies and analyses regarding its future, including options for restart and closure [1] - The refinery's production was curtailed in June 2024, indicating a significant operational shift for the company [1] Industry Summary - The closure of the Kwinana alumina refinery reflects broader trends in the alumina industry, where aging facilities may face increased scrutiny and potential shutdowns [1]

Core Insights - Investors are showing a bullish stance on Alcoa (NYSE: AA), with significant options activity indicating potential upcoming developments [1] - The overall sentiment among large traders is evenly split, with 50% bullish and 50% bearish positions [2] - Whales have targeted a price range for Alcoa between $25.0 and $37.0 over the last three months based on options volume and open interest [3] Options Activity - A total of 8 options trades for Alcoa were identified, with 7 calls amounting to $632,647 and 1 put totaling $113,460 [2] - The volume and open interest metrics provide insights into liquidity and investor interest in Alcoa's options, particularly within the $25.0 to $37.0 strike price range over the past 30 days [4] Market Overview - Alcoa is a vertically integrated aluminum company, recognized as the world's largest bauxite miner and alumina refiner by production volume, and the eighth-largest aluminum producer [11] - The company has a consensus target price of $37.33 from three market analysts, with varying ratings from different firms [13][14] - Current trading volume for Alcoa is 5,301,441, with the stock price up by 3.13% to $33.73, indicating potential overbought conditions [16]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks and Screening - Investing in bargain stocks with recent price momentum can be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Constellium (CSTM) Analysis - Constellium (CSTM) has shown a four-week price change of 3%, indicating growing investor interest [3] - CSTM gained 2.8% over the past 12 weeks, with a beta of 1.7, suggesting it moves 70% more than the market [4] - CSTM has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - CSTM is trading at a Price-to-Sales ratio of 0.27, meaning investors pay 27 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Investment Opportunities - Besides CSTM, there are other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Core Insights - The primary purpose of a business is to generate profits for reinvestment or shareholder rewards, with net profit margin being a key metric for measuring profitability [1][3] - A higher net profit margin indicates a company's efficiency in converting sales into profits and reflects its operational management [2][4] Net Profit Margin Analysis - Net profit margin is calculated as Net Profit/Sales * 100, representing the amount retained after all expenses [3] - A strong net profit margin attracts investors and skilled employees, providing a competitive edge over peers [4] Pros and Cons of Net Profit Margin - Net profit margin offers clarity on a company's business model, including pricing, cost structure, and efficiency, making it a preferred metric for investors [5] - However, the metric varies significantly across industries, and differences in accounting treatments can complicate comparisons [6] Investment Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are crucial for maximizing returns [7] - Screening parameters include a net margin of at least 0%, positive EPS growth, and a broker rating of 1, indicating strong bullishness [8] Company Performance Highlights - InfuSystem Holdings (INFU), Century Aluminum Company (CENX), Remitly Global (RELY), and Great Lakes Dredge & Dock (GLDD) exhibit strong net margins and upward EPS revisions for 2025, all holding a Zacks Rank of 1 [9][10] - INFU's 2025 earnings estimate was revised upward by 160% to $0.26 per share, with an average surprise of 79.2% in recent quarters [11][12] - CENX's earnings estimate increased by 11.6% to $2.30 per share, with an average surprise of -15.4% [12][13] - RELY's earnings estimate rose by $0.03 to $0.12 per share, consistently beating estimates with an average surprise of 132.9% [13][14] - GLDD's earnings estimate increased by $0.06 to $1.02 per share, with an average surprise of 45.3% [15][16]