Last Updated: 19 Sep 2024
Executive Summary
Alcoa Corp (AA) is a leading global aluminum producer with a market capitalization of $8.87 billion. The company's recent financial performance has been mixed, with revenue growth offset by declining margins. Despite challenges, analysts remain optimistic about Alcoa's long-term prospects, citing its strong market position and potential for margin improvement.
Company Overview
Alcoa Corp is a diversified aluminum producer with operations in mining, refining, and fabrication. The company's products are used in a wide range of industries, including aerospace, automotive, and construction. Alcoa has a global presence with operations in over 20 countries.
Fundamental Analysis
Revenue: Alcoa's revenue grew by 0.083% year-over-year to $10.7 billion in the latest quarter.
Earnings: The company reported a loss per share of $3.07 in the latest quarter, compared to a loss of $3.04 in the same period last year.
Margins: Alcoa's profit margin is -0.0514%, indicating that the company is struggling to control costs.
Return on Equity: The company's return on equity is -0.117%, suggesting that it is not effectively using its invested capital.
Technical Analysis
Price Action: Alcoa's stock price has been trading within a range of $22.76 to $45.33 over the past 52 weeks.
Moving Averages: The stock's 50-day moving average is $32.82, and its 200-day moving average is $33.49.
Support and Resistance: The stock has support at $32.82 and resistance at $34.34.
Short Term Outlook
In the short term, Alcoa's stock price is expected to remain range-bound. The company's financial performance has been mixed, and there are no significant catalysts on the horizon. However, the stock's technical indicators suggest that it could break out to the upside if it can clear the resistance level at $34.34.
Long Term Outlook
In the long term, Alcoa's prospects are more promising. The company is a leader in the aluminum industry, and it is well-positioned to benefit from the growing demand for aluminum in the automotive and aerospace sectors. If Alcoa can improve its margins and return on equity, its stock price could appreciate significantly.
Analyst Recommendations
Analysts are generally bullish on Alcoa's stock. The consensus rating is "Buy," with an average target price of $43.66. Two analysts have a "Strong Buy" rating, four have a "Buy" rating, seven have a "Hold" rating, and none have a "Sell" or "Strong Sell" rating.
