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1000.0
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2021-08-19 00:00:00 UTC
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Why Alcoa Stock Plunged Today
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-plunged-today-2021-08-19
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nan
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nan
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What happened
Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. Investors have been excited about the aluminum giant's prospects so far this year, but the optimism appears to be fading.
So what
Alcoa is a pure-play aluminum stock, so the meteoric rise in aluminum prices this year unsurprisingly spurred heavy investor interest in the stock. It's never a one-way ride for Alcoa shares, though, given that it's a commodity stock that typically moves with fluctuations in commodity prices.
That pretty much explains why Alcoa shares fell today. Prices of base metals are headed lower on the back of weak economic data from China, the world's largest metals consumer.
Earlier this week, data coming from China revealed lower-than-expected 6.4% growth in industrial production for July. That's triggered fears of decelerating growth in China, putting metal prices under pressure.
Image source: Getty Images.
The price of aluminum per tonne on the London Metal Exchange, for example, has dipped 2% in the past couple of days after recently hitting multiyear highs. That may seem like an insignificant drop, but Alcoa is considered a bellwether, and a sharper dip in prices of other metals is driving most stocks in the metals and mining sector lower.
The price of copper, for example, is hitting multimonth lows as of this writing, and so is the price of iron ore. Investors fear aluminum prices also could be headed even lower.
Now what
Alcoa recently delivered stellar numbers, including record net income, for its second quarter, thanks almost entirely to higher aluminum prices. The company also was banking on higher prices for a strong second half of 2021.
Needless to say, investors are worried now that metal prices are showing signs of cooling down, and that's weighing down the stock price. That said, Alcoa is on a stronger footing now, and it might be too early to suggest the commodity upcycle is coming to an end. It's a wait-and-watch situation for now.
10 stocks we like better than Alcoa Corporation
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 9, 2021
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. The price of aluminum per tonne on the London Metal Exchange, for example, has dipped 2% in the past couple of days after recently hitting multiyear highs. Now what Alcoa recently delivered stellar numbers, including record net income, for its second quarter, thanks almost entirely to higher aluminum prices.
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What happened Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. Earlier this week, data coming from China revealed lower-than-expected 6.4% growth in industrial production for July. The price of copper, for example, is hitting multimonth lows as of this writing, and so is the price of iron ore. Investors fear aluminum prices also could be headed even lower.
|
What happened Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. So what Alcoa is a pure-play aluminum stock, so the meteoric rise in aluminum prices this year unsurprisingly spurred heavy investor interest in the stock. That may seem like an insignificant drop, but Alcoa is considered a bellwether, and a sharper dip in prices of other metals is driving most stocks in the metals and mining sector lower.
|
What happened Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. It's never a one-way ride for Alcoa shares, though, given that it's a commodity stock that typically moves with fluctuations in commodity prices. The price of copper, for example, is hitting multimonth lows as of this writing, and so is the price of iron ore. Investors fear aluminum prices also could be headed even lower.
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1001.0
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2021-08-12 00:00:00 UTC
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Alcoa Reaches Analyst Target Price
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AA
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https://www.nasdaq.com/articles/alcoa-reaches-analyst-target-price-2021-08-12
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nan
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nan
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $44.38, changing hands for $44.66/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 8 different analyst targets within the Zacks coverage universe contributing to that average for Alcoa Corporation, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $14.00. And then on the other side of the spectrum one analyst has a target as high as $56.00. The standard deviation is $13.276.
But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $44.38/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.38 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Alcoa Corporation:
RECENT AA ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 4 4 4 4
Buy ratings: 0 0 0 0
Hold ratings: 3 3 3 3
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.86 1.86 1.86 1.86
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AA — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $44.38, changing hands for $44.66/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $44.38/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.38 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $44.38, changing hands for $44.66/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $44.38/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.38 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AA crossing above that average target price of $44.38/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.38 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $44.38, changing hands for $44.66/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $44.38, changing hands for $44.66/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $44.38/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $44.38 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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1002.0
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2021-08-06 00:00:00 UTC
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XME, MP, CENX, AA: ETF Inflow Alert
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AA
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https://www.nasdaq.com/articles/xme-mp-cenx-aa%3A-etf-inflow-alert-2021-08-06
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $110.9 million dollar inflow -- that's a 6.3% increase week over week in outstanding units (from 41,100,000 to 43,700,000). Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 3.7%, Century Aluminum Co. (Symbol: CENX) is up about 0.9%, and Alcoa Corporation (Symbol: AA) is up by about 2.2%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average:
Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $43.10. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 3.7%, Century Aluminum Co. (Symbol: CENX) is up about 0.9%, and Alcoa Corporation (Symbol: AA) is up by about 2.2%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $43.10. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 3.7%, Century Aluminum Co. (Symbol: CENX) is up about 0.9%, and Alcoa Corporation (Symbol: AA) is up by about 2.2%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $43.10. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 3.7%, Century Aluminum Co. (Symbol: CENX) is up about 0.9%, and Alcoa Corporation (Symbol: AA) is up by about 2.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $110.9 million dollar inflow -- that's a 6.3% increase week over week in outstanding units (from 41,100,000 to 43,700,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $43.10.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 3.7%, Century Aluminum Co. (Symbol: CENX) is up about 0.9%, and Alcoa Corporation (Symbol: AA) is up by about 2.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $110.9 million dollar inflow -- that's a 6.3% increase week over week in outstanding units (from 41,100,000 to 43,700,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $43.10.
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1003.0
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2021-08-06 00:00:00 UTC
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7 Materials Stocks Ready to Supply the Infrastructure Boom
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AA
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https://www.nasdaq.com/articles/7-materials-stocks-ready-to-supply-the-infrastructure-boom-2021-08-06
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The U.S. is pulling out all the stops to modernize its infrastructure. While that word doesn’t inspire a lot of excitement for most investors, it’s a very enticing prospect on the whole.
It means all of the things we rely on to conduct the fundamental business of living our lives will get an upgrade. The magnitude of this is hard to grasp.
For example, the U.S. power grid is so old, Thomas Edison (or Nikola Tesla) would find it familiar. The U.S. interstate highway system was designed in the 1950s and there are bridges and tunnels that are woefully in need of repair. That hamstrings our intermodal commerce.
I could go on. But the point is, investing in infrastructure means infrastructure jobs in the short term and a more vibrant economy in the long term. The materials stocks featured here will be big players in that effort in the U.S., and many will also be global winners.
7 Coronavirus Stocks to Buy as the Delta Variant Rises
Here are 7 materials stocks ready to supply the infrastructure boom:
Alcoa (NYSE:AA)
Cleveland-Cliffs (NYSE:CLF)
Cemex (NYSE:CX)
Freeport-McMoRan (NYSE:FCX)
James Hardie Industries (NYSE:JHX)
ArcelorMittal (NYSE:MT)
United States Steel (NYSE:X)
These materials stocks might not be as adrenaline-inducing as the latest meme stocks, but they’re far more reliable. Let’s take a closer look.
Materials Stocks to Support the Infrastructure Boom: Alcoa (AA)
Source: Daniel J. Macy / Shutterstock.com
In 1886, Charles Martin Hall developed a smelting process for aluminum and launched a company in Pittsburgh. By 1907, he had built the Aluminum Company of America, Alcoa for short.
For decades, AA was the first company to report earnings every quarter, illustrating materials stocks’ influence over financial stocks as America grew. This is also reflected in the power of the Dow Jones Industrial Average, which has become less of economic barometer over the decades.
Today, it’s the No. 8 aluminum producer in the world and remains a major force in the global economy. It currently has operations in seven countries, with customers around the world.
Some price rises in materials stocks have been due to a weakening dollar since most commodities are priced in dollars. But now demand is increasing, which bodes well for AA.
AA has gained 66% year to date yet trades at a P/E of just 17.
The stock has a B rating in my Portfolio Grader.
Cleveland-Cliffs (CLF)
Source: Pavel Kapysh / Shutterstock.com
When CLF was founded, James Polk was President of the United States; the nation was busy fighting the Mexican-American War and acquiring the Oregon Territory from the British.
Today, CLF remains a U.S.-based iron ore producer that serves the steel industry through mines in Michigan and Minnesota. U.S.-based materials stocks will be big winners in this infrastructure effort because the Biden administration is committed to bringing back jobs back to the U.S.
With a market cap of nearly $12 billion, this is an important stock in the American industrial commodities sector and should see significant business in coming years. Remember, these infrastructure projects will take years to build.
CLF is up 62% year to date and trades at a current P/E of 15.
7 Coronavirus Stocks to Buy as the Delta Variant Rises
The stock has an A rating in my Portfolio Grader.
Cemex (CX)
CX) mixing truck driving in Santa Clara, California." width="300" height="169">
Source: Sundry Photography / Shutterstock.com
When you’re driving around your city or town the next time, look around and see how much cement and concrete are around you — buildings, roads, bridges, houses.
Again, materials stocks are almost camouflaged because we’re so used to seeing them we never really think about how critical they to our daily lives.
Founded in 1906 in Monterrey, Mexico, CX currently operates in more than 30 countries, including the U.S., and distributes its materials in more than 50 countries. It’s the fifth-largest building materials company in the world.
Also remember, offshore drilling rigs also depend on cement to secure their wellheads. The energy industry is a significant consumer of specialized concrete as are other industries.
CX has gained 57% year to date, yet it’s still struggling through pandemic-related slowdowns. However, when the world grows, CX grows.
The stock has a Portfolio Grader A rating.
Freeport-McMoRan (FCX)
FCX) sign on a Freeport-McMoRan office building in Phoenix, Arizona." width="300" height="169">
Source: MICHAEL A JACKSON FILMS / Shutterstock.com
If you’re looking for a globally diversified miner and processor in the materials stocks sector, look no further. US-based FCX mines copper, gold, silver and molybdenum in operations that stretch around the globe. And it’s vertically integrated, so it can sell raw as well as processed materials. FCX has a substantial $52 billion market cap.
Molybdenum first reached the periodic table of elements in 1781 and is used today as a key component in steel alloys. It has the sixth-highest melting point of any element, so it makes high-strength steel used in structural steel and stainless steel. It’s also a key component in armor and weapons-grade materials.
FCX is very much a barometer of the global growth, so it’s a great stock when things are on the upswing. It’s risen 39% year to date and is trading with a current P/E of 19.
7 Coronavirus Stocks to Buy as the Delta Variant Rises
The stock has a Portfolio Grader A rating.
James Hardie Industries (JHX)
Source: Shutterstock
Did you know that 15% of new homes are built with fiber cement siding? Basically, fiber cement is wood pulp, water, fly ash and cement that’s mixed together to form a material that is highly durable and highly versatile. It’s used on homes and on commercial buildings due to its durability and relative affordability.
JHX is the global leader in supplying fiber cement products. It has 10 facilities in the U.S., Asia, Australia and Europe.
This is certainly a niche player, but it’s a significant business sector and a major materials stock with a $15 billion market cap. JHX has been on a run because it’s part of the real estate boom in China and the US, so it isn’t as cheap as the other stocks here. But it offers a direct play in a very hot niche.
JHX is up 18% year to date and trades at a current PE of 59.
The stock has a Portfolio Grader B rating.
ArcelorMittal (MT)
Source: Massimo Todaro / Shutterstock.com
If you’re looking for the king of all materials stocks, MT has to be on the short list. It’s the largest steelmaker in the world.
The crazy thing is, in this world of trillion-dollar market cap companies, MT is a major global materials stock yet has a market cap of just $37 billion.
It’s a vertically integrated player that has mining operations all the way down the production chain to milling cold rolled steel, hot rolled and cold rolled coil, coated steel and plate. It also does flat and tubular steel, which means if you need something made of finished steel, MT has you covered from mine to delivery.
The steelmaker has had a strong run, posting a 51% return year to date. Yet MT is still only trading at a current P/E below 6.
7 Coronavirus Stocks to Buy as the Delta Variant Rises
MT stock has a Portfolio Grader A rating.
United States Steel (X)
Source: Shutterstock
This company was formed by J.P. Morgan in 1901 and was the steel company that built the railroads and shipping fleets, bridges and buildings in the early 20th century. Ironically, most of those bridges and buildings are still in use today.
But X isn’t that powerful engine of commerce that it once was. By the end of the 20th century, most of X’s revenue was from its energy investments. U.S. steel production had been undercut by the globalization of the economy and during the late 20th century, it was cheaper to import steel from Japan and sail it to the U.S. than it was to produce it in the U.S.
But X has been doing well in the 21st century and it’s the second largest steel company in the U.S. X will also be a big beneficiary of the Made in America movement that’s underway now as well. U.S. materials stocks are well positioned and X is near the top of the list.
X has gained 52% year to date, yet it’s trading at a current P/E of just 8.
The stock has a Portfolio Grader A rating.
Disclosure: On the date of publication, Louis Navellier has positions in AA, CLF, CX, KHX and MT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
The post 7 Materials Stocks Ready to Supply the Infrastructure Boom appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Materials Stocks to Support the Infrastructure Boom: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com In 1886, Charles Martin Hall developed a smelting process for aluminum and launched a company in Pittsburgh. 7 Coronavirus Stocks to Buy as the Delta Variant Rises Here are 7 materials stocks ready to supply the infrastructure boom: Alcoa (NYSE:AA) Cleveland-Cliffs (NYSE:CLF) Cemex (NYSE:CX) Freeport-McMoRan (NYSE:FCX) James Hardie Industries (NYSE:JHX) ArcelorMittal (NYSE:MT) United States Steel (NYSE:X) These materials stocks might not be as adrenaline-inducing as the latest meme stocks, but they’re far more reliable. For decades, AA was the first company to report earnings every quarter, illustrating materials stocks’ influence over financial stocks as America grew.
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7 Coronavirus Stocks to Buy as the Delta Variant Rises Here are 7 materials stocks ready to supply the infrastructure boom: Alcoa (NYSE:AA) Cleveland-Cliffs (NYSE:CLF) Cemex (NYSE:CX) Freeport-McMoRan (NYSE:FCX) James Hardie Industries (NYSE:JHX) ArcelorMittal (NYSE:MT) United States Steel (NYSE:X) These materials stocks might not be as adrenaline-inducing as the latest meme stocks, but they’re far more reliable. Materials Stocks to Support the Infrastructure Boom: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com In 1886, Charles Martin Hall developed a smelting process for aluminum and launched a company in Pittsburgh. For decades, AA was the first company to report earnings every quarter, illustrating materials stocks’ influence over financial stocks as America grew.
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7 Coronavirus Stocks to Buy as the Delta Variant Rises Here are 7 materials stocks ready to supply the infrastructure boom: Alcoa (NYSE:AA) Cleveland-Cliffs (NYSE:CLF) Cemex (NYSE:CX) Freeport-McMoRan (NYSE:FCX) James Hardie Industries (NYSE:JHX) ArcelorMittal (NYSE:MT) United States Steel (NYSE:X) These materials stocks might not be as adrenaline-inducing as the latest meme stocks, but they’re far more reliable. Materials Stocks to Support the Infrastructure Boom: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com In 1886, Charles Martin Hall developed a smelting process for aluminum and launched a company in Pittsburgh. For decades, AA was the first company to report earnings every quarter, illustrating materials stocks’ influence over financial stocks as America grew.
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7 Coronavirus Stocks to Buy as the Delta Variant Rises Here are 7 materials stocks ready to supply the infrastructure boom: Alcoa (NYSE:AA) Cleveland-Cliffs (NYSE:CLF) Cemex (NYSE:CX) Freeport-McMoRan (NYSE:FCX) James Hardie Industries (NYSE:JHX) ArcelorMittal (NYSE:MT) United States Steel (NYSE:X) These materials stocks might not be as adrenaline-inducing as the latest meme stocks, but they’re far more reliable. Materials Stocks to Support the Infrastructure Boom: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com In 1886, Charles Martin Hall developed a smelting process for aluminum and launched a company in Pittsburgh. For decades, AA was the first company to report earnings every quarter, illustrating materials stocks’ influence over financial stocks as America grew.
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1004.0
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2021-08-05 00:00:00 UTC
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Why This Metal Stock Plunged 19% Amid a Commodities Boom
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AA
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https://www.nasdaq.com/articles/why-this-metal-stock-plunged-19-amid-a-commodities-boom-2021-08-05
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nan
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nan
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What happened
Century Aluminum (NASDAQ: CENX) shares bled through Thursday and closed down 19.11% after delivering an unimpressive set of second-quarter numbers. The drop happened despite significantly stronger aluminum markets. Expectations soared after rival Alcoa (NYSE: AA) reported its best-ever quarter in mid-July. Century Aluminum shares had gained a whopping 25%, but it took only one day for the stock to give up most of those gains.
So what
As economies reopen, manufacturing is taking off. And demand from China (the world's largest aluminum consumer) remains firm. As a result, aluminum prices have shot up this year to hit historical highs. That's the biggest reason why Alcoa swung to a big profit last quarter. In sharp contrast, Century Aluminum's Q2 net loss widened to $35.1 million from 26.9 million in the year-ago period.
Image source: Getty Images.
Although its net sales increased 31% year over year, this was entirely because of higher prices as shipments declined 9%. Management blamed supply disruptions that delayed the restart of its Mt. Holly aluminum smelter as one of the reasons behind lower shipments.
Also, Century Aluminum projected its Q2 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) to grow $55 million to $60 million. However, it fell short of those estimates, which didn't sit well with investors. The company's cash balance slipped to only $9 million at the end of the second quarter from $81.6 million as of December 30, 2020.
Now what
For now, Century Aluminum is focused on bringing Mt. Holly and another unit online to ramp up capacity, and that means its capital spending will likely be high and cash flows low in the near future.
There's another big problem here: Century Aluminum uses hedging substantially to limit impact from volatile commodity prices, but that's proving to be a costly strategy in a rising-price environment. The company expects to incur a loss of $40 million to $45 million on its hedges at spot metal prices in Q3. That's bound to hit its bottom line, which is the last thing investors want to see during a commodities upcycle.
10 stocks we like better than Century Aluminum
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Century Aluminum wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Expectations soared after rival Alcoa (NYSE: AA) reported its best-ever quarter in mid-July. What happened Century Aluminum (NASDAQ: CENX) shares bled through Thursday and closed down 19.11% after delivering an unimpressive set of second-quarter numbers. Holly and another unit online to ramp up capacity, and that means its capital spending will likely be high and cash flows low in the near future.
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Expectations soared after rival Alcoa (NYSE: AA) reported its best-ever quarter in mid-July. What happened Century Aluminum (NASDAQ: CENX) shares bled through Thursday and closed down 19.11% after delivering an unimpressive set of second-quarter numbers. Century Aluminum shares had gained a whopping 25%, but it took only one day for the stock to give up most of those gains.
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Expectations soared after rival Alcoa (NYSE: AA) reported its best-ever quarter in mid-July. In sharp contrast, Century Aluminum's Q2 net loss widened to $35.1 million from 26.9 million in the year-ago period. 10 stocks we like better than Century Aluminum When our award-winning analyst team has a stock tip, it can pay to listen.
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Expectations soared after rival Alcoa (NYSE: AA) reported its best-ever quarter in mid-July. Holly aluminum smelter as one of the reasons behind lower shipments. The company expects to incur a loss of $40 million to $45 million on its hedges at spot metal prices in Q3.
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2021-08-04 00:00:00 UTC
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The Top 10 Stocks to Buy According to Analysts
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https://www.nasdaq.com/articles/the-top-10-stocks-to-buy-according-to-analysts-2021-08-04
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Retail investors often follow analyst recommendations to figure out which stocks to buy and which ones to avoid. It’s natural to lean on the professionals who get paid to follow companies and report their findings to clients.
Conviction lists are highly followed by investors as a result, and the Goldman Sachs buy list is especially popular. Like the old E.F. Hutton ads, when Goldman Sachs speaks, people listen.
On July 19, the investment bank added Alcoa (NYSE:AA) to its conviction buy list. As I write this, AA stock is up more than 25% since it got the boost.
Analysts can drive stocks higher. It doesn’t matter that they often get it wrong. Buy ratings are gold for investor relations departments.
7 Cheap Value Stocks To Buy For August 2021
So which are the top stocks to buy at the moment, according to analysts? Unfortunately, it’s hard to answer that question objectively. But most of these ten stocks have at least 20 analysts covering them and all have an overall rating of overweight or better:
BHP Group (NYSE:BHP)
Twilio (NYSE:TWLO)
Stellantis (NYSE:STLA)
Constellation Brands (NYSE:STZ)
ConocoPhillips (NYSE:COP)
KB Financial Group (NYSE:KB)
Koninklijke Philips (NYSE:PHG)
Waste Connections (NYSE:WCN)
CoStar Group (NASDAQ:CSGP)
Microsoft (NASDAQ:MSFT)
Stocks to Buy: BHP Group (BHP)
Source: Shutterstock
Analyst Ratings: 8 buy, 1 overweight, 4 hold, 2 underweight
Target Price: $78.61
Out of 15 analysts covering BHP stock, only two have a negative rating of the company.
Focused on the mining of iron ore, copper and other minerals as well as the exploration and development of oil and gas, BHP has come a long way over the past year. It has a one-year total return of 50.4% through Aug. 4, putting its valuation at historically high levels.
Perhaps that’s why the analysts’ 12-month target price provides zero upside for investors. Without some catalyst to boost earnings estimates, it appears most of the pros feel a correction is due.
In the meantime, BHP Group has been busy. In its 2021 operational review, BHP shared that it has launched production with four different development projects. These include the company’s South Flank iron ore project in Western Australia and its Ruby oil and gas project in Trinidad and Tobago. All four were on time and on budget.
The analyst consensus for earnings in 2021 is $7.08 per share.
Twilio (TWLO)
TWLO) logo is displayed over a white background on a smartphone screen." width="300" height="169">
Source: rafapress / Shutterstock.com
Analyst Ratings: 26 buy, 1 overweight, 3 hold
Target Price: $476.29
The last time I wrote about TWLO stock was early September 2020. At the time, I was fairly cautious about buying the communications-platform-as-a-service company because it had gone on a big run over the previous year.
Trading near $270 at the time, I thought it would be wise to wait a few weeks to see what happened to its stock. After that, I thought there was a chance investors could pick it up for less. By mid-September, it had fallen to $225, but that was as low as it went. By February 2021, it was trading at an all-time high of $457.30.
It cooled off in May, but now TWLO stock is closing in on $400 as I write this. Its valuation has gotten even pricier — it now trades at 26.5x sales.
7 F-Rated Stocks to Avoid for the Rest of 2021
While the analysts love Twilio, I believe it’s an excellent long-term buy over the next three to five years. I think the smart play is to wait for TWLO to retreat again. Since the beginning of 2020, Twilio has had five decent-sized corrections. As the multiple goes even higher, I don’t see that trend changing anytime soon.
Stocks to Buy: Stellantis (STLA)
Analyst Ratings: 16 buy, 1 overweight, 3 hold
Target Price: $24.40
On July 26, Stellantis announced the establishment of the Stellantis Design Studio. The business will provide outside companies and its own brands with design services. The Design Studio’s offerings won’t be exclusive to transportation companies, mimicking what other car manufacturers are doing today.
“Looking back on our brand portfolio, Stellantis designers have created some of the most exciting and visually appealing vehicles in automotive history,” creative director Arnault Gournac stated according to Motor Authority. “We plan to take that creative energy and offer our key competencies to our global external partners to help them take their brand and design projects to the next level.”
When you have all this high-priced talent, why not keep them busy when they’re not working on in-house design projects?
Stellantis continues to get lost in the conversation about car and truck companies. Investors do so at their peril.
In mid-July, Stellantis held its electric vehicle (EV) Day. It announced it would spend 30 million Euros ($35.6 billion) on low-emission vehicles (LEVs) over the next five years. By 2030, it expects 40% of its U.S. sales from LEVs and 70% in Europe. It will even bring out an electric-powered Dodge muscle car.
Electrification is coming and Stellantis intends to make it to the party. Better late than never.
Constellation Brands (STZ)
Source: ShinoStock / Shutterstock.com
Analyst Ratings: 14 buy, 2 overweight, 8 hold
Target Price: $266. 55
Constellation Brands is best known for Corona and Modelo beer, Kim Crawford wine, Casa Noble tequila and Canopy Growth (NASDAQ:CGC) cannabis. However, it recently branched out into an entirely new category.
On July 28, Constellation Brands announced it would acquire a minority stake in Hop Wtr, a sparkling water product infused with adaptogens and nootropics. Their goal is to provide a healthy alternative for those who may not drink alcohol.
Constellation Ventures vice president Jennifer Evans stated, “The functional beverage category continues to show strong potential and is well-aligned with today’s growing consumer preferences for wellness and betterment.”
In the press release, she added that the company’s founders “have taken a consumer-first approach in building a great product and brand, and through this investment we expect to learn more about what resonates with consumers in this fast-growing space.”
In March 2020, I recommended investors looking to bet on cannabis should buy STZ stock. I still believe that, and I feel that Constellation is one of the best-run companies in the beverage industry.
Its investment in Hop Wtr shows the company is dipping its toe in the water to understand the functional beverages marketplace. Additionally, the move is less expensive than buying a big chunk of Canopy Growth.
6 A-Rated, Safe Stocks to Buy With Dividends
It’s a smart move. Being first-in for an industry rarely equates to being the most successful company in a sector.
Stocks to Buy: ConocoPhillips (COP)
Source: JHVEPhoto / Shutterstock.com
Analyst Ratings: 24 buy, 5 overweight, 2 hold
Target Price: $75.78
I’m not a fossil fuel fan, but it’s hard not to notice ConocoPhillips’s overall analyst rating.
If a buy rating is worth 5 points and a sell is worth 1, stocks with more buys get higher overall ratings. So in ConocoPhillips’s case, a perfect score for 31 analysts covering its stock would be 155. Its current score is 146, or 94% of its total possible score.
At the end of June, ConocoPhillips said it would increase its 2021 share buybacks by $1 billion to $6 billion, or nearly 8% of its current market capitalization of $77 billion. It also expects to find $1 billion in annual savings from its integration of Concho Resources, which it acquired in January for $10 billion.
I’m a free cash flow (FCF) nut. So the fact that ConocoPhillips plans to generate $70 billion in FCF throughout its 10-year plan (its estimate is based on a $50 barrel of oil with a 2% inflation increase cooked in) explains why analysts are sold on its stock.
Over the same period, it plans to return $65 billion to shareholders in dividends and share repurchases. But, unfortunately, that doesn’t leave much room for acquisitions or debt repayment.
But hey, the analysts love it.
KB Financial Group (KB)
Source: shutterstock.com/CC7
Analyst Ratings: 13 buy, 3 overweight
Target Price: $62.49
The South Korean financial services company held its second quarter 2021 conference call on July 22. Its results were very healthy. Revenue increased by 14.2% over Q2 2020 to 12.24 trillion South Korean Won ($10.69 billion). Additionally, the company’s net profit was 1.21 trillion South Korean Won ($1.06 billion).
KB Financial operates several companies that specialize in banking, investment banking, insurance, asset management and other financial services.
In December 2020, Jefferies Financial Group (NYSE:JEF) entered into a co-branding alliance with KB Securities to provide equity research, sales and trading in South Korea. The research would be produced by KB Securities analysts and co-branded to Jefferies clients around the world.
7 Growth Stocks to Buy to Make Early Retirement a Reality
It is the kind of arrangement that Asian companies seem far more comfortable with than American businesses. Hence, it’s good to see Jefferies partnering with South Korea’s largest financial conglomerate by assets.
Stocks to Buy: Koninklijke Philips (PHG)
Source: JPstock / Shutterstock.com
Analyst Ratings: 10 buy, 1 overweight, 9 hold
Target Price: $59.54
I don’t know about you, but the first thing I think of when I hear Philips is light bulbs. In the neighborhood where I grew up, I hung around with a kid whose dad ran the lightbulb business in Canada. Of course, Philips is so much more. Its purpose is to keep people healthy and well.
In 2011, approximately 44% of its annual revenue was generated by health-related products and services. By 2020, it was most of its overall business. By 2025, it plans to have revenues of 23 billion Euros ($27.3 billion), all of it from its health and wellness products.
At the end of March, based on Phillips’ trailing 12-month (TTM) sales, it generated 39% of its revenue in North America, 22% in Western Europe and another 10% in other mature markets. 29% of revenue came from emerging growth economies.
In Q1 2021, its TTM free cash flow was 1.96 billion Euros ($2.32 billion). Moreover, its market cap of $40.6 billion has an FCF yield of 4.8%, which provides investors with growth at a reasonable price.
Philips deserves a closer look.
Waste Connections (WCN)
Source: Jordi_Cor / Shutterstock.com
Analyst Ratings: 16 buy, 1 overweight
Target Price: $133.50
If there’s a diamond in the rough in this list, Waste Connections would have to be it. It probably has to do with the fact it’s based in Toronto and not somewhere in the U.S.
Dumpster rentals, waste management services and garbage pickup — Waste Connections does it all. Serving more than seven million residential and commercial customers in 43 states and six Canadian provinces, it has grown into the third-largest solid waste company in North America. It generates 87% of its revenue in the U.S. despite being based in Toronto.
Make no mistake — long-time shareholders are pleased with their investment. For example, if you invested $10,000 in WCN a decade ago, today it’s worth six-fold, or about $59,000.
As page seven of its presentation shows, Waste Connections’ 10-year total shareholder return is 1.4 times higher than that of Waste Management (NYSE:WM) and Republic Services (NYSE:RPG), its two larger peers. Against the S&P 500, the 10-year total shareholder return is 1.8 times higher than the index.
7 Potential Stocks for Elon Musk's Buy List
It flies under the radar, but WCN stock delivers for shareholders just the same.
Stocks to Buy: CoStar Group (CSGP)
Source: Casimiro PT / Shutterstock.com
Analyst Ratings: 10 buy, 1 overweight, 2 hold
Target Price: $102.73
Back in February, I recommended CoStar’s stock and nine other companies that were trading around $1,000. It split 10-for-1 on June 28.
Although it has gained nearly 6% since my recommendation, CoStar’s stock has definitely underperformed in 2021. It’s down 7.4% YTD.
That’s okay. In the long term, you will make money owning CSGP stock. On July 27, the company released its Q2 2021 results. They were impressive. Revenues rose 21% to $480 million.
As I said earlier, I’m an FCF nut. Its TTM FCF is $410 million. However, as the company continues to accelerate growth through acquisitions like Homes.com, which it purchased in May for $156 million, its FCF generation will also accelerate.
CoStar currently has a 1% FCF yield, but I could see that rising to 2% to 3% in the next year or two. Add multiple expansion to its valuation and you’ve got a recipe for future gains.
Microsoft (MSFT)
Source: gguy / Shutterstock.com
Analyst Ratings: 31 buy, 5 overweight, 2 hold
Target Price: $323.50
Microsoft’s analyst rating score is 178 out of 190 possible points. Like ConocoPhillips earlier, it’s 94% perfection. Not to mention the analyst target price provides for a nearly 13% upside. And we all know if Microsoft keeps delivering strong quarters, those targets will be adjusted much higher.
On July 27, Microsoft reported Q4 2021 earnings. They were a thing of beauty. Sales increased 21% and net income was up 47%. FCF for the entire year was $56.1 billion, 24% higher than in 2020.
However, what really caught my attention was the news that LinkedIn’s annual revenue was more than $10 billion in fiscal 2021. Its fourth quarter saw 46% year-over-year growth.
In fiscal 2017, LinkedIn had annual revenue of $2.27 billion. Four years later, it’s now more than $10 billion. In February 2017, I said that LinkedIn was vital to the future of MSFT stock.
It’s not a coincidence that a gain of more than 340% in LinkedIn revenues over the past four years resulted in a similar gain in MSFT stock.
Yes, Microsoft’s Azure cloud business did the heavy lifting. But LinkedIn was indicative of the changes happening at the company — good ones, at that.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
The post The Top 10 Stocks to Buy According to Analysts appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On July 19, the investment bank added Alcoa (NYSE:AA) to its conviction buy list. As I write this, AA stock is up more than 25% since it got the boost. “Looking back on our brand portfolio, Stellantis designers have created some of the most exciting and visually appealing vehicles in automotive history,” creative director Arnault Gournac stated according to Motor Authority.
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On July 19, the investment bank added Alcoa (NYSE:AA) to its conviction buy list. As I write this, AA stock is up more than 25% since it got the boost. But most of these ten stocks have at least 20 analysts covering them and all have an overall rating of overweight or better: BHP Group (NYSE:BHP) Twilio (NYSE:TWLO) Stellantis (NYSE:STLA) Constellation Brands (NYSE:STZ) ConocoPhillips (NYSE:COP) KB Financial Group (NYSE:KB) Koninklijke Philips (NYSE:PHG) Waste Connections (NYSE:WCN) CoStar Group (NASDAQ:CSGP) Microsoft (NASDAQ:MSFT) Stocks to Buy: BHP Group (BHP) Source: Shutterstock Analyst Ratings: 8 buy, 1 overweight, 4 hold, 2 underweight Target Price: $78.61 Out of 15 analysts covering BHP stock, only two have a negative rating of the company.
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On July 19, the investment bank added Alcoa (NYSE:AA) to its conviction buy list. As I write this, AA stock is up more than 25% since it got the boost. But most of these ten stocks have at least 20 analysts covering them and all have an overall rating of overweight or better: BHP Group (NYSE:BHP) Twilio (NYSE:TWLO) Stellantis (NYSE:STLA) Constellation Brands (NYSE:STZ) ConocoPhillips (NYSE:COP) KB Financial Group (NYSE:KB) Koninklijke Philips (NYSE:PHG) Waste Connections (NYSE:WCN) CoStar Group (NASDAQ:CSGP) Microsoft (NASDAQ:MSFT) Stocks to Buy: BHP Group (BHP) Source: Shutterstock Analyst Ratings: 8 buy, 1 overweight, 4 hold, 2 underweight Target Price: $78.61 Out of 15 analysts covering BHP stock, only two have a negative rating of the company.
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On July 19, the investment bank added Alcoa (NYSE:AA) to its conviction buy list. As I write this, AA stock is up more than 25% since it got the boost. Stocks to Buy: Stellantis (STLA) Analyst Ratings: 16 buy, 1 overweight, 3 hold Target Price: $24.40 On July 26, Stellantis announced the establishment of the Stellantis Design Studio.
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2021-08-02 00:00:00 UTC
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7 Infrastructure Stocks to Buy as America Rebuilds
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https://www.nasdaq.com/articles/7-infrastructure-stocks-to-buy-as-america-rebuilds-2021-08-02
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite the contentious rancor and partisan noise about what President Joe Biden’s administration would look like, the ride itself has been rather mundane. Based on talking points from the left and right, it appears Biden frustrates much of Washington for ultimately doing very little. However, a landmark national investment could change this political dynamic and potentially bolster infrastructure stocks.
While high-profile events such as rejoining the Paris Agreement are made for cable news drama, substantively, there hasn’t been much to be excited or upset about. However, the Bipartisan Infrastructure Deal will have serious implications. The bill is a $1.2 trillion initiative to implement Biden’s “Build Back Better” campaign promise and addresses:
Transportation
Clean water
Universal broadband
Clean power
Remediation of legacy pollution
Efforts to address climate change
To be fair, this ambitious plan will not be easy. While the current version of the deal was settled on by a bipartisan group of senators, Republicans and Democrats can have trouble seeing eye to eye. For instance, a recent Reuters report indicated that partisan squabbles erupted during negotiations. Still, the conflict hasn’t deterred President Biden. He recently traveled to Lehigh Valley, Pennsylvania to raise support for the buildout initiative.
6 A-Rated, Safe Stocks to Buy With Dividends
Further, while many of us are happy to have some semblance of normalcy return, the reality is that the economic recovery has been disjointed. Possibly the best way to address the growing wealth gap is for the federal government to modernize our underlying networks. As the bill makes its way through Congress, keep an eye on these seven infrastructure stocks:
Vulcan Materials Company (NYSE:VMC)
Mueller Water Products (NYSE:MWA)
Caterpillar (NYSE:CAT)
Crown Castle International (NYSE:CCI)
Alcoa (NYSE:AA)
Olin Corporation (NYSE:OLN)
Albemarle (NYSE:ALB)
Before you jump on this trade, note that the bill was only finalized on Aug. 1. The proposal still has to maneuver its way through an evenly split Senate and a contentious House, where some Democrats are not happy about the negotiated terms. However, the necessity of a buildout could win politicians over and boost these infrastructure stocks.
Infrastructure Stocks: Vulcan Materials Company (VMC)
VMC) website is displayed on a smartphone screen." width="300" height="169">
Source: madamF / Shutterstock.com
As this country’s largest producer of construction aggregates (crushed stone, sand and gravel) and a major producer of aggregates-based materials, no discussion of infrastructure stocks is complete without Vulcan Materials. Basically, VMC stock puts the build in “Build Back Better.”
Not surprisingly, Vulcan Materials has enjoyed strong support from investors. Over the trailing year, shares are up almost 54%. On a year-to-date (YTD) basis, VMC stock has already gained nearly 22%. This compares favorably to the benchmark exchange-traded fund SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which is up 34% over the year and 17% YTD.
Granted, betting on infrastructure stocks is no surefire bet. As I mentioned earlier, the proposal must still go through the rest of the Senate and the House. And the divide isn’t just based on interparty issues, but intraparty disagreements as well.
However, a report from The Hill revealed that most American voters support the infrastructure bill. That would leave opposing politicians who are up for reelection in a pickle. Besides, Vulcan is a critical investment, so you almost can’t go wrong here.
Mueller Water Products (MWA)
Source: Shutterstock
Over the last several weeks, mainstream media reports have been hammering home the message of America’s water crisis. For instance, The New York Times reported that water levels at Lake Powell and Lake Mead dropped to historic lows amid an ongoing drought. This is incredibly problematic considering they are two of the nation’s largest reservoirs.
Sure enough, improving clean water infrastructure is one of the top priorities for this White House. In a roundabout way, this bolsters the case for Mueller, which offers solutions for industrial and commercial water and gas infrastructure systems.
What makes Mueller a particularly intriguing stock is Echologics, its water infrastructure diagnostic-focused brand. Its technologies are geared towards water loss management, pipe condition assessment and leak detection.
7 of the Best Cheap Stocks to Buy for August
Admittedly, addressing a large-scale lack of water will probably require incredible technological advancements we don’t have right now — such as an economically viable way to desalinate ocean water. But what we can do is make effective use of our present-day resources. Therefore, investors should consider MWA shares for their portfolio of infrastructure stocks.
Infrastructure Stocks: Caterpillar (CAT)
CAT) logo on it" width="300" height="169">
Source: astudio / Shutterstock.com
One of the most bizarre things I’ve heard from former President Donald Trump was his puzzling argument against Japan-based Caterpillar competitor Komatsu (OTCMKTS:KMTUY).
In an MSNBC interview in June 2015, Trump stated, “People are buying Komatsu tractors instead of Caterpillar tractors. I’m telling you, we’re in trouble.” At a Republican debate he reiterated his claims, alleging the de-valued yen was preventing sales of Caterpillar tractors.
Perhaps the biggest irony, though, is that while Trump trumpeted Caterpillar, CAT stock didn’t perform well throughout most of his tenure. Adding insult to injury, CAT shares instead responded well to Biden’s electoral win. As of Aug. 2, shares are up 13% YTD.
To be fair, CAT stock probably would have gone up irrespective of who won the 2020 election. Other demand channels — such as housing — have jumped higher throughout the Covid-19 pandemic. Thus, CAT stock may be a name you can trust over the long haul.
Crown Castle International (CCI)
CCI) logo on a web browser highlighted through the lens of a magnifying glass" width="300" height="169">
Source: Casimiro PT / Shutterstock.com
The Biden administration is aggressively pushing for stronger connectivity infrastructure, making Crown Castle International a no-brainer.
Granted, you could potentially generate more profit from individual wagers on the industry. But CCI shares are perfect for conservative investors because they’re a broader play on infrastructure stocks. Rather than betting on which team wins the competition, CCI stock is about selling tickets to the game — and those tickets will be in high demand.
According to its website, Crown Castle has more than 25 years of experience with owning and operating network assets. Additionally, the company controls more than 40,000 towers and has approximately 80,000 small cells on air or under contract. With the rollout of 5G and other digital innovations such as cloud computing, Crown Castle has never been more relevant.
7 Potential Stocks for Elon Musk's Buy List
Most importantly, taking the lead in 5G is a top priority for our rival nations, especially China. The race to control critical technologies has no political affiliation. And given that China currently ranks unfavorably within the international community, the U.S. is unlikely to shelve its 5G efforts anytime soon. Therefore, CCI stock is a worthwhile infrastructure buy.
Infrastructure Stocks: Alcoa (AA)
Source: Daniel J. Macy / Shutterstock.com
Alcoa benefitted from the Covid-19 pandemic, but its stock was not looking pretty when the trade war between the U.S. and China got underway. As a Bloomberg report from September 2019 stated:
“When aluminum demand last contracted during the financial crisis and unwanted metal started flooding into warehouses, it took more than a decade to work through the glut. Now, the market is bracing for another sharp increase in inventories as demand growth grinds to a halt.
Aluminum has tumbled to a two-and-a-half-year low as slowing global growth and the U.S.-China trade war hurt demand for the metal used in airplanes, automobiles and beer cans.”
Today, we have the opposite situation. Shortages and inflationary pressures are bolstering the aluminum market. Suddenly, AA stock is looking hot.
Over the trailing year, Alcoa shares skyrocketed 204%. On a YTD basis, AA stock is up 68%. Better yet, the underlying political conditions are supporting infrastructure stocks like Alcoa. Watch this stock closely, as its financial profile has improved since the worst of the pandemic last year.
Olin Corporation (OLIN)
Source: Shutterstock
Olin Corporation is what I would call a two-fer opportunity. First, the company’s chemical manufacturing business — specifically its chlor alkali products and vinyls — and epoxy tech make it a relevant yet underappreciated infrastructure stock.
For instance, the Biden White House wants to invest in renewable energy technologies such as wind turbines. But every year, these systems undergo operations under intense environments. Olin’s epoxy products and services keep wind energy blades running perfectly.
If that angle doesn’t work out, then OLN stock has another card to play: ammunition. Under the Olin brand is Winchester, one of the most recognized names in the ammunition business. Purchases of firearms are up, and supply chain disruptions have dramatically increased the cost of ammo.
7 Dividend Stocks To Buy as Treasury Yields Tumble
Today, ammo is well worth its weight in gold — check out OLN’s performance as evidence. On a YTD basis, shares are up nearly 90% and they appear poised to drive even higher.
Infrastructure Stocks: Albemarle (ALB)
Source: IgorGolovniov/Shutterstock.com
One of the top priorities of the Biden administration — if not the top priority — is the advancement of clean transportation networks. Naturally, this bodes well for electric vehicle (EV) manufacturers and, more to the point, EV infrastructure stocks.
With so much interest in this space, there are plenty of options among EV charging station providers — you probably know the names I’m thinking about. However, I’m getting skeptical about this industry. EVs cater to higher-income folks and are far too expensive for average households — unless you want to sacrifice features like a wheel or usable space.
In this context, Albemarle offers a great compromise. Known for its lithium production business, it plays a significant role in the EV rollout. In fact, earlier this year, management stated that it will double lithium production at its Silver Peak facility in Nevada by 2025.
Admittedly, investors should be aware of the impact of lithium mining on the environment. This contradicts the popular ethos of environmental, social and governance (ESG) investing. Nevertheless, on a net basis, Albemarle arguably does more good than harm.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Infrastructure Stocks to Buy as America Rebuilds appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As the bill makes its way through Congress, keep an eye on these seven infrastructure stocks: Vulcan Materials Company (NYSE:VMC) Mueller Water Products (NYSE:MWA) Caterpillar (NYSE:CAT) Crown Castle International (NYSE:CCI) Alcoa (NYSE:AA) Olin Corporation (NYSE:OLN) Albemarle (NYSE:ALB) Before you jump on this trade, note that the bill was only finalized on Aug. 1. Infrastructure Stocks: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa benefitted from the Covid-19 pandemic, but its stock was not looking pretty when the trade war between the U.S. and China got underway. Suddenly, AA stock is looking hot.
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As the bill makes its way through Congress, keep an eye on these seven infrastructure stocks: Vulcan Materials Company (NYSE:VMC) Mueller Water Products (NYSE:MWA) Caterpillar (NYSE:CAT) Crown Castle International (NYSE:CCI) Alcoa (NYSE:AA) Olin Corporation (NYSE:OLN) Albemarle (NYSE:ALB) Before you jump on this trade, note that the bill was only finalized on Aug. 1. Infrastructure Stocks: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa benefitted from the Covid-19 pandemic, but its stock was not looking pretty when the trade war between the U.S. and China got underway. Suddenly, AA stock is looking hot.
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As the bill makes its way through Congress, keep an eye on these seven infrastructure stocks: Vulcan Materials Company (NYSE:VMC) Mueller Water Products (NYSE:MWA) Caterpillar (NYSE:CAT) Crown Castle International (NYSE:CCI) Alcoa (NYSE:AA) Olin Corporation (NYSE:OLN) Albemarle (NYSE:ALB) Before you jump on this trade, note that the bill was only finalized on Aug. 1. Infrastructure Stocks: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa benefitted from the Covid-19 pandemic, but its stock was not looking pretty when the trade war between the U.S. and China got underway. Suddenly, AA stock is looking hot.
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As the bill makes its way through Congress, keep an eye on these seven infrastructure stocks: Vulcan Materials Company (NYSE:VMC) Mueller Water Products (NYSE:MWA) Caterpillar (NYSE:CAT) Crown Castle International (NYSE:CCI) Alcoa (NYSE:AA) Olin Corporation (NYSE:OLN) Albemarle (NYSE:ALB) Before you jump on this trade, note that the bill was only finalized on Aug. 1. Infrastructure Stocks: Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa benefitted from the Covid-19 pandemic, but its stock was not looking pretty when the trade war between the U.S. and China got underway. Suddenly, AA stock is looking hot.
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1007.0
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2021-07-26 00:00:00 UTC
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Noteworthy Monday Option Activity: AA, STZ, AAL
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AA
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aa-stz-aal-2021-07-26
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 43,474 contracts have traded so far, representing approximately 4.3 million underlying shares. That amounts to about 45.3% of AA's average daily trading volume over the past month of 9.6 million shares. Particularly high volume was seen for the $39 strike call option expiring August 20, 2021, with 5,080 contracts trading so far today, representing approximately 508,000 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $39 strike highlighted in orange:
Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,039 contracts, representing approximately 403,900 underlying shares or approximately 43.6% of STZ's average daily trading volume over the past month, of 925,940 shares. Especially high volume was seen for the $205 strike put option expiring September 17, 2021, with 786 contracts trading so far today, representing approximately 78,600 underlying shares of STZ. Below is a chart showing STZ's trailing twelve month trading history, with the $205 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 146,293 contracts, representing approximately 14.6 million underlying shares or approximately 43.2% of AAL's average daily trading volume over the past month, of 33.9 million shares. Especially high volume was seen for the $22 strike call option expiring July 30, 2021, with 16,933 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $22 strike highlighted in orange:
For the various different available expirations for AA options, STZ options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $39 strike call option expiring August 20, 2021, with 5,080 contracts trading so far today, representing approximately 508,000 underlying shares of AA. Especially high volume was seen for the $22 strike call option expiring July 30, 2021, with 16,933 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 43,474 contracts have traded so far, representing approximately 4.3 million underlying shares.
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Below is a chart showing AA's trailing twelve month trading history, with the $39 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,039 contracts, representing approximately 403,900 underlying shares or approximately 43.6% of STZ's average daily trading volume over the past month, of 925,940 shares. Below is a chart showing STZ's trailing twelve month trading history, with the $205 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 146,293 contracts, representing approximately 14.6 million underlying shares or approximately 43.2% of AAL's average daily trading volume over the past month, of 33.9 million shares. Especially high volume was seen for the $22 strike call option expiring July 30, 2021, with 16,933 contracts trading so far today, representing approximately 1.7 million underlying shares of AAL.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 43,474 contracts have traded so far, representing approximately 4.3 million underlying shares. Below is a chart showing AA's trailing twelve month trading history, with the $39 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,039 contracts, representing approximately 403,900 underlying shares or approximately 43.6% of STZ's average daily trading volume over the past month, of 925,940 shares. Below is a chart showing STZ's trailing twelve month trading history, with the $205 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 146,293 contracts, representing approximately 14.6 million underlying shares or approximately 43.2% of AAL's average daily trading volume over the past month, of 33.9 million shares.
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Below is a chart showing AA's trailing twelve month trading history, with the $39 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,039 contracts, representing approximately 403,900 underlying shares or approximately 43.6% of STZ's average daily trading volume over the past month, of 925,940 shares. Below is a chart showing STZ's trailing twelve month trading history, with the $205 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 146,293 contracts, representing approximately 14.6 million underlying shares or approximately 43.2% of AAL's average daily trading volume over the past month, of 33.9 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 43,474 contracts have traded so far, representing approximately 4.3 million underlying shares.
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1008.0
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2021-07-25 00:00:00 UTC
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COLUMN-Aluminium producers struggle to respond to higher prices: Andy Home
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AA
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https://www.nasdaq.com/articles/column-aluminium-producers-struggle-to-respond-to-higher-prices%3A-andy-home-2021-07-26
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nan
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nan
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By Andy Home
LONDON, July 23 (Reuters) - Global aluminium production growth ground to a halt in the second quarter of this year even as prices rallied to multi-year highs on both London and Shanghai markets.
Annualised run-rates dropped by 120,000 tonnes after rising by 590,000 tonnes in the first quarter of 2021, according to the latest figures published by the International Aluminium Institute (IAI). (https://tmsnrt.rs/3kLdDEb)
China, the world's largest producer, continued to lift operating rates, unsurprisingly given Shanghai prices hit an 11-year high in June and the country's demand has been running red hot.
However, the supply response to super-high prices has been muted by past standards, attesting to a string of power-related constraints on smelters in several Chinese provinces.
In the rest of the world annualised run-rates have been gently sliding since March. First-half production of 13.04 million tonnes was up only 0.7% year on year, with China driving the headline 4.4% increase in global output.
Which on current evidence is being outstripped by demand growth, particularly in China, which still can't produce enough primary metal to supply the domestic market.
APPLYING THE BRAKES
China imported another 294,081 tonnes of primary and alloy aluminium last month, extending an import trend that has been running since the second quarter of last year.
Although national aluminium production rose by 7.3% year on year in January-June, it is clear the Chinese market is running short of metal.
The government appears to think the same, scheduling another round of state reserve sales, including 90,000 tonnes of aluminium, for July 29.
Chinese smelter production growth decelerated over the second quarter with output growing only 1.7% relative to the first quarter.
The IAI's estimates differ slightly from the official Chinese figures but both are currently capturing the same theme of stalling impetus.
Drought conditions in Yunnan - a hub of hydro-powered aluminium production - have led to smelter curtailments which will pass with the arrival of seasonal rains.
Less transient will be the government's dual control energy policy, which targets steady improvements in both energy consumption and intensity as China embarks on the road to carbon-neutrality by 2060.
Several provinces have already fallen behind on their targets, which triggered capacity curtailments in Inner Mongolia earlier this year.
On paper there is plenty of potential for further Chinese aluminium production growth. Annualised production is nudging up against the 40-million tonne level, compared with a government cap of 45 million tonnes.
But power constraints are now acting as a gentle continuous brake on new capacity growth and the pressures on a smelter sector still overwhelmingly dependent on coal will only grow.
Chinese provinces accounting for close to 65% of national production capacity missed one or both energy targets in the first quarter of this year, according to U.S. producer Alcoa's AA.N second-quarter results presentation.
HIGH MARGINS, LOWER PRODUCTION
Alcoa reported its highest-ever quarterly net income since the company's inception in its current form in 2016. Realised pricing jumped more than 60% year on year on a combination of strong London Metal Exchange prices and super-strong physical premiums.
Other producers are reaping a similar windfall, but that didn't stop first-half aluminium output dropping across all regions with the exception of Latin America, non-China Asia and Western Europe, the latter notching up a meagre 0.4% year-on-year rise.
A 15% year-on-year jump in Latin American production is flattered by the partial curtailment of two smelters in the first half of 2020 - Brazil's Albras (fire) and Argentina's Aluar (COVID-19).
India was a core driver of an 8% increase in first-half aluminium production in Asia outside of China. The country's biggest producer Vedanta Ltd reported a 17% jump in calendar second-quarter output.
However, the collective supply response to higher prices outside of China appears to have peaked in February of this year, when annualised output hit 26.48 million tonnes. By June the rate was back at 26.04 million tonnes, the lowest monthly outcome since November last year.
RESTARTS?
Restarts of idled capacity are back on the aluminium agenda.
Norway's Hydro NHY.OL has just completed the reactivation of a 100,000-tonne per year potline at its Husnes smelter. The line was idled in 2009 in the wake of the price hit generated by the global financial crisis.
Alcoa AA.N Chief Financial Officer William Oplinger told an industry conference in May that the company was evaluating several restart options in the light of the transformation in market dynamics.
Alumar, a 447,000-tonne smelter in Brazil that has been out of action since March 2015, is a front-runner. As reported by Fastmarkets, Oplinger said "we'd be looking for an energy contract (...), in the mid-term, to get that plant up and running."
Other producers will surely be doing the same as both futures prices and physical premiums march higher.
However, the production lift thus far has been restrained in China and anaemic in the rest of the world.
That feeds into the emerging bull narrative of a market facing structural supply issues, first and foremost in China, the powerhouse of aluminium production growth for most of this century.
Global aluminium production growth grinds to a half in the second quarterhttps://tmsnrt.rs/3kLdDEb
(Editing by David Evans)
((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa AA.N Chief Financial Officer William Oplinger told an industry conference in May that the company was evaluating several restart options in the light of the transformation in market dynamics. Chinese provinces accounting for close to 65% of national production capacity missed one or both energy targets in the first quarter of this year, according to U.S. producer Alcoa's AA.N second-quarter results presentation. (https://tmsnrt.rs/3kLdDEb) China, the world's largest producer, continued to lift operating rates, unsurprisingly given Shanghai prices hit an 11-year high in June and the country's demand has been running red hot.
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Chinese provinces accounting for close to 65% of national production capacity missed one or both energy targets in the first quarter of this year, according to U.S. producer Alcoa's AA.N second-quarter results presentation. Alcoa AA.N Chief Financial Officer William Oplinger told an industry conference in May that the company was evaluating several restart options in the light of the transformation in market dynamics. By Andy Home LONDON, July 23 (Reuters) - Global aluminium production growth ground to a halt in the second quarter of this year even as prices rallied to multi-year highs on both London and Shanghai markets.
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Chinese provinces accounting for close to 65% of national production capacity missed one or both energy targets in the first quarter of this year, according to U.S. producer Alcoa's AA.N second-quarter results presentation. Alcoa AA.N Chief Financial Officer William Oplinger told an industry conference in May that the company was evaluating several restart options in the light of the transformation in market dynamics. By Andy Home LONDON, July 23 (Reuters) - Global aluminium production growth ground to a halt in the second quarter of this year even as prices rallied to multi-year highs on both London and Shanghai markets.
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Chinese provinces accounting for close to 65% of national production capacity missed one or both energy targets in the first quarter of this year, according to U.S. producer Alcoa's AA.N second-quarter results presentation. Alcoa AA.N Chief Financial Officer William Oplinger told an industry conference in May that the company was evaluating several restart options in the light of the transformation in market dynamics. Annualised run-rates dropped by 120,000 tonnes after rising by 590,000 tonnes in the first quarter of 2021, according to the latest figures published by the International Aluminium Institute (IAI).
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1009.0
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2021-07-23 00:00:00 UTC
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Why Alcoa Stock Is Soaring This Week
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-is-soaring-this-week-2021-07-23
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nan
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nan
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What happened
During earnings season, one often gets to see glaring examples of how irrational the stock markets can be. How else do you explain a stock slumping right after it reports its strongest quarterly numbers in years? That's what happened with Alcoa (NYSE: AA) shares after the aluminum company reported its earnings on July 15.
But as is also often the case, investors soon sensed an opportunity, and Alcoa stock has bounced back remarkably this week -- it's up 14.4% so far this week as of 9:40 a.m. EDT Friday.
So what
Alcoa reported its second-quarter numbers on July 15 after market close. It was the company's strongest quarter since 2016, when it became an independent upstream aluminum company after the-then Alcoa split into two.
Here are some notable numbers from Alcoa's Q2 report:
Average realized price of aluminum up 63% year over year;
Revenue up 31.9% year over year;
Record net income of $309 million versus a net loss of $197 million in Q2 2020; and
Total debt of $2.3 billion and cash balance of $1.65 billion as of the end of the quarter.
In short, it was a stellar quarter. Why then did Alcoa shares fall after earnings?
Image source: Getty Images.
One reason is that despite strong profits, Alcoa generated negative cash from operations as it used a significant chunk of cash to add to its pension fund. But with the company now having funded 90% of its global pension requirement, Alcoa's cash flows could improve in the coming quarters if aluminum prices remain firm.
Investors also realized that the sell-off in Alcoa shares wasn't logical given its upbeat outlook for the rest of the year. To top that, several analysts jumped in and upgraded their price targets on Alcoa shares this week for multiple reasons. While Citi put a price target of $52 a share on Alcoa, Morgan Stanley and Goldman Sachs believe Alcoa is worth $51 a share. With so many analysts seeing such huge upside in the stock, Alcoa was bound to rally.
Now what
Alcoa is on strong footing right now for one big reason: soaring aluminum prices thanks to high demand from sectors like automotive, driven by the economy's reopening and manufacturing restarts. That's boosting the company's cash reserves and fortifying its balance sheet, which could go a long way in helping Alcoa ride out the cyclicality in commodity markets. Long-term investors understand this and have therefore wasted no time in bidding Alcoa shares higher.
10 stocks we like better than Alcoa Corporation
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 7, 2021
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's what happened with Alcoa (NYSE: AA) shares after the aluminum company reported its earnings on July 15. But with the company now having funded 90% of its global pension requirement, Alcoa's cash flows could improve in the coming quarters if aluminum prices remain firm. Now what Alcoa is on strong footing right now for one big reason: soaring aluminum prices thanks to high demand from sectors like automotive, driven by the economy's reopening and manufacturing restarts.
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That's what happened with Alcoa (NYSE: AA) shares after the aluminum company reported its earnings on July 15. Here are some notable numbers from Alcoa's Q2 report: Average realized price of aluminum up 63% year over year; Revenue up 31.9% year over year; Record net income of $309 million versus a net loss of $197 million in Q2 2020; and Total debt of $2.3 billion and cash balance of $1.65 billion as of the end of the quarter. To top that, several analysts jumped in and upgraded their price targets on Alcoa shares this week for multiple reasons.
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That's what happened with Alcoa (NYSE: AA) shares after the aluminum company reported its earnings on July 15. Here are some notable numbers from Alcoa's Q2 report: Average realized price of aluminum up 63% year over year; Revenue up 31.9% year over year; Record net income of $309 million versus a net loss of $197 million in Q2 2020; and Total debt of $2.3 billion and cash balance of $1.65 billion as of the end of the quarter. While Citi put a price target of $52 a share on Alcoa, Morgan Stanley and Goldman Sachs believe Alcoa is worth $51 a share.
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That's what happened with Alcoa (NYSE: AA) shares after the aluminum company reported its earnings on July 15. How else do you explain a stock slumping right after it reports its strongest quarterly numbers in years? 10 stocks we like better than Alcoa Corporation When our award-winning analyst team has a stock tip, it can pay to listen.
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1010.0
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2021-07-23 00:00:00 UTC
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XME, MP, RGLD, AA: ETF Outflow Alert
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AA
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https://www.nasdaq.com/articles/xme-mp-rgld-aa%3A-etf-outflow-alert-2021-07-23
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $213.2 million dollar outflow -- that's a 11.1% decrease week over week (from 45,750,000 to 40,650,000). Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 1.9%, Royal Gold Inc (Symbol: RGLD) is off about 0.9%, and Alcoa Corporation (Symbol: AA) is lower by about 0.9%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average:
Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $41.60. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 1.9%, Royal Gold Inc (Symbol: RGLD) is off about 0.9%, and Alcoa Corporation (Symbol: AA) is lower by about 0.9%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $41.60. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 1.9%, Royal Gold Inc (Symbol: RGLD) is off about 0.9%, and Alcoa Corporation (Symbol: AA) is lower by about 0.9%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $41.60. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 1.9%, Royal Gold Inc (Symbol: RGLD) is off about 0.9%, and Alcoa Corporation (Symbol: AA) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $213.2 million dollar outflow -- that's a 11.1% decrease week over week (from 45,750,000 to 40,650,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $41.60.
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Among the largest underlying components of XME, in trading today MP Materials Corp (Symbol: MP) is up about 1.9%, Royal Gold Inc (Symbol: RGLD) is off about 0.9%, and Alcoa Corporation (Symbol: AA) is lower by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $213.2 million dollar outflow -- that's a 11.1% decrease week over week (from 45,750,000 to 40,650,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $22.36 per share, with $47.85 as the 52 week high point — that compares with a last trade of $41.60.
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1011.0
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2021-07-22 00:00:00 UTC
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Why Kaiser Aluminum Stock Slumped Today Despite 169% Sales Growth
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AA
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https://www.nasdaq.com/articles/why-kaiser-aluminum-stock-slumped-today-despite-169-sales-growth-2021-07-22
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nan
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nan
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What happened
Kaiser Aluminum (NASDAQ: KALU) shares went on a roller-coaster ride today. By 11:20 a.m. EDT, the aluminum stock was down 12.8% as Kaiser reported a big net loss for its second quarter. That was in sharp contrast to rival Alcoa's (NYSE: AA) recently reported quarterly earnings -- Alcoa shares soared on the day of its earnings release.
Investors, however, seem to have found green shoots in Kaiser's otherwise seemingly morbid quarterly numbers, which is why the stock regained some ground and closed Thursday down only 5.8%.
So what
Kaiser Aluminum released its second-quarter earnings report after market close on July 21.
Kaiser's net sales surged 168.5% year over year to $741 million, with value-added products making up nearly 43% of its total sales. In April, Kaiser acquired Alcoa's Warrick rolling mill, which boosted its value-added revenue by nearly 82% in Q2. The acquisition marked Kaiser's reentry into the lucrative aluminum packaging industry (think food and beverage packaging).
Image course: Getty Images.
However, Kaiser's net loss more than tripled to $22 million in Q2, which is why investors were miffed. But if you exclude one-time charges like a tax charge, Kaiser's adjusted net income of $16 million was a huge improvement over its adjusted net income of $6 million in the year-ago quarter.
Now what
Kaiser's outlook for the rest of the year suggests the sell-off in its shares wasn't entirely warranted. Kaiser is beginning to see a recovery in several end markets, such as aerospace and automotive thanks to the economy's reopening and the pickup in air travel.
Packaging, meanwhile, looks like a promising growth avenue, with industry experts pegging the industry to grow by mid-single digit compound annual rates over the next five years or so. Kaiser, in fact, sees packaging as a significant growth opportunity, so much so that it expects revenue from value-added products to hit $2 billion in the long term.
Kaiser expects to spend $400 million in capital expenditures over the next few years to expand its key rolling mill Westwood in Washington, and add roll coating manufacturing capacity at Warrick. That sounds like a plan, and is something long-term investors should keep in mind.
10 stocks we like better than Kaiser Aluminum
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*Stock Advisor returns as of June 7, 2021
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That was in sharp contrast to rival Alcoa's (NYSE: AA) recently reported quarterly earnings -- Alcoa shares soared on the day of its earnings release. In April, Kaiser acquired Alcoa's Warrick rolling mill, which boosted its value-added revenue by nearly 82% in Q2. Kaiser is beginning to see a recovery in several end markets, such as aerospace and automotive thanks to the economy's reopening and the pickup in air travel.
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That was in sharp contrast to rival Alcoa's (NYSE: AA) recently reported quarterly earnings -- Alcoa shares soared on the day of its earnings release. So what Kaiser Aluminum released its second-quarter earnings report after market close on July 21. Kaiser's net sales surged 168.5% year over year to $741 million, with value-added products making up nearly 43% of its total sales.
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That was in sharp contrast to rival Alcoa's (NYSE: AA) recently reported quarterly earnings -- Alcoa shares soared on the day of its earnings release. By 11:20 a.m. EDT, the aluminum stock was down 12.8% as Kaiser reported a big net loss for its second quarter. 10 stocks we like better than Kaiser Aluminum When our award-winning analyst team has a stock tip, it can pay to listen.
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That was in sharp contrast to rival Alcoa's (NYSE: AA) recently reported quarterly earnings -- Alcoa shares soared on the day of its earnings release. By 11:20 a.m. EDT, the aluminum stock was down 12.8% as Kaiser reported a big net loss for its second quarter. However, Kaiser's net loss more than tripled to $22 million in Q2, which is why investors were miffed.
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1012.0
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2021-07-20 00:00:00 UTC
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Why Alcoa Stock Popped Today
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-popped-today-2021-07-20
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nan
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nan
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What happened
Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. With yet another analyst joining the bandwagon who believes Alcoa shares have significant upside ahead, more and more investors are betting on the stock.
So what
Morgan Stanley turned bullish about the metals and mining sector in June and singled out Alcoa as a top pick. This morning, Morgan Stanley reiterated its buy rating on the stock and thinks it could be worth $51 per share. That's a whopping 62% upside from Alcoa's Tuesday opening price of around $31.55 a share. Morgan Stanley believes the company could earn $0.94 per share in its third quarter versus a loss in the year-ago period.
Morgan Stanley isn't the only one that sees Alcoa performing so well. Just yesterday, Goldman Sachs added Alcoa to its conviction buy list and upped its price target on the stock to $51 a share. Goldman Sachs is betting on rising aluminum prices; sees Alcoa's earnings before interest, tax, depreciation, and amortization (EBITDA) rising by 20% for every 10% increase in aluminum prices; and believes the company's efforts to deleverage should boost capital returns.
On July 16, Citi upgraded its rating on Alcoa stock to buy with a price target of $52 a share, again driven by the company's efforts to strengthen its balance sheet, among other things.
Image source: Getty Images.
So what's behind this flurry of analyst upgrades, you may ask? It's Alcoa's stellar second-quarter numbers released on July 15.
Alcoa reported its highest-ever quarterly net income since it became an upstream aluminum company after splitting into two in 2016. Alcoa's average realized aluminum price shot up more than 60% year over year and it paid down debt worth $750 million in the second quarter. With $1.65 billion cash on hand, Alcoa's net debt (total debt minus cash and equivalents) was only $642 million as of the end of quarter.
Now what
With aluminum prices showing no signs of slowing down and demand for the metal from China remaining strong, Alcoa is upbeat about the rest of the year. It foresees a strong third quarter driven by higher shipments across all its segments -- bauxite, alumina, and aluminum.
Importantly, Alcoa expects double-digit growth in sales of value-add products, which include slab, foundry, rods, and billet this year. Value-add is a part of its aluminum segment, and although Alcoa doesn't provide a breakdown of its contribution to its top line, a slump in demand for value-add products from sectors like automotive was a big reason why the company's earnings fell last year.
In short, analysts' expectations that Alcoa's operational performance will continue to impress isn't unwarranted; and despite aluminum prices hitting record highs in recent weeks, the stock is still trading at less than half the P/E ratio it commanded in 2017. That should leave investors with a lot to think about, while also keeping in mind the cyclicality of commodity markets.
10 stocks we like better than Alcoa Corporation
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. On July 16, Citi upgraded its rating on Alcoa stock to buy with a price target of $52 a share, again driven by the company's efforts to strengthen its balance sheet, among other things. Importantly, Alcoa expects double-digit growth in sales of value-add products, which include slab, foundry, rods, and billet this year.
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What happened Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. Goldman Sachs is betting on rising aluminum prices; sees Alcoa's earnings before interest, tax, depreciation, and amortization (EBITDA) rising by 20% for every 10% increase in aluminum prices; and believes the company's efforts to deleverage should boost capital returns. On July 16, Citi upgraded its rating on Alcoa stock to buy with a price target of $52 a share, again driven by the company's efforts to strengthen its balance sheet, among other things.
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What happened Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. Goldman Sachs is betting on rising aluminum prices; sees Alcoa's earnings before interest, tax, depreciation, and amortization (EBITDA) rising by 20% for every 10% increase in aluminum prices; and believes the company's efforts to deleverage should boost capital returns. On July 16, Citi upgraded its rating on Alcoa stock to buy with a price target of $52 a share, again driven by the company's efforts to strengthen its balance sheet, among other things.
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What happened Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. This morning, Morgan Stanley reiterated its buy rating on the stock and thinks it could be worth $51 per share. On July 16, Citi upgraded its rating on Alcoa stock to buy with a price target of $52 a share, again driven by the company's efforts to strengthen its balance sheet, among other things.
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1013.0
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2021-07-19 00:00:00 UTC
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Shares of AA Now Oversold
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AA
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https://www.nasdaq.com/articles/shares-of-aa-now-oversold-2021-07-19
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nan
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nan
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In trading on Monday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $30.995 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Alcoa Corporation, the RSI reading has hit 29.6 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 34.3, the RSI of Spot Gold is at 45.0, and the RSI of Spot Silver is presently 36.1. A bullish investor could look at AA's 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.98 per share, with $44.42 as the 52 week high point — that compares with a last trade of $31.46. Alcoa Corporation shares are currently trading down about 4.5% on the day.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out what 9 other oversold metals stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at AA's 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. In trading on Monday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $30.995 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.98 per share, with $44.42 as the 52 week high point — that compares with a last trade of $31.46.
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In trading on Monday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $30.995 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.98 per share, with $44.42 as the 52 week high point — that compares with a last trade of $31.46. A bullish investor could look at AA's 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Monday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $30.995 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.98 per share, with $44.42 as the 52 week high point — that compares with a last trade of $31.46. A bullish investor could look at AA's 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Monday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $30.995 per share. A bullish investor could look at AA's 29.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.98 per share, with $44.42 as the 52 week high point — that compares with a last trade of $31.46.
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1014.0
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2021-07-16 00:00:00 UTC
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Wall Street Has High Hopes for These 2 Unsung Stocks
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AA
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https://www.nasdaq.com/articles/wall-street-has-high-hopes-for-these-2-unsung-stocks-2021-07-16
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nan
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nan
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The stock market played out a familiar theme on Friday, with major market benchmarks initially losing ground but clawing back losses as the day progressed. Market participants aren't sure how to handle the current inflationary pressures hitting the economy, but central bank policymakers show no signs of changing their strategy in managing monetary policy. As of 12:30 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 77 points to 34,910. The S&P 500 (SNPINDEX: ^GSPC) fell 7 points to 4,353, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was lower by 14 points to 14,529.
Even when the market is struggling, smart investors continue to look at the fundamental prospects for businesses. Several Wall Street analysts gave positive comments on individual stocks on Friday, and two of the most interesting calls were on Cintas (NASDAQ: CTAS) and Alcoa (NYSE: AA). Below, we'll look at what the analysts had to say and investors' reactions to the news.
Uniformly smart
Shares of Cintas were up 4% on Friday at midday. The uniform and business services provider has been hitting record highs ever since shortly after the coronavirus bear market in early 2020, and things are looking up for the company's future.
Today's positive comments about Cintas came from a host of analysts. Baird upgraded the stock from neutral to outperform, saying it believes that Cintas offers true growth opportunities that should help boost the stock, with valuations that aren't unreasonably high. Barclays and Credit Suisse boosted their price targets on the stock, while analysts at William Blair argued that Thursday's brief sell-off following the company's fiscal fourth-quarter earnings report offered a rare bargain opportunity.
Cintas does well when the economy does well, and with people going back to work, the company has a chance to shine. Moreover, its facility services include cleaning, and the pandemic's heightened awareness of public health issues should lead to more growth in that arena even if COVID-19 case counts diminish further.
Investors looking for a stock with a great track record of gains should look closely at Cintas. The business isn't sexy, but the returns longtime shareholders have earned certainly are.
Image source: Getty Images.
Can Alcoa shine?
Elsewhere, Alcoa's stock fell 4%. The move came despite favorable analyst comments, as investors reacted to the aluminum specialist's latest earnings.
Alcoa's results looked good. The company set records for quarterly net income and earnings per share, bouncing back from losses a year ago. Sales jumped 32% from year-earlier levels, as Alcoa benefited from an environment of higher prices and demand that led to greater shipment volume.
Analysts at Citi jumped on the bandwagon, upgrading Alcoa from neutral to buy and setting a $52-per-share price target. As Citi sees it, Alcoa's approach to capital allocation is a big asset for the company, and shareholders can expect a mix of dividends, buybacks, and reinvestment into its aluminum business.
However, Alcoa is in a cyclical business, and when investors get skeptical about future growth, they often punish cyclical stocks. The market might be getting too pessimistic about a potential reversal in the turnaround that the global economy is undergoing, but until more optimism prevails, Alcoa might not see its stock rebound as much as some think it should.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Cintas. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several Wall Street analysts gave positive comments on individual stocks on Friday, and two of the most interesting calls were on Cintas (NASDAQ: CTAS) and Alcoa (NYSE: AA). Market participants aren't sure how to handle the current inflationary pressures hitting the economy, but central bank policymakers show no signs of changing their strategy in managing monetary policy. Barclays and Credit Suisse boosted their price targets on the stock, while analysts at William Blair argued that Thursday's brief sell-off following the company's fiscal fourth-quarter earnings report offered a rare bargain opportunity.
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Several Wall Street analysts gave positive comments on individual stocks on Friday, and two of the most interesting calls were on Cintas (NASDAQ: CTAS) and Alcoa (NYSE: AA). The uniform and business services provider has been hitting record highs ever since shortly after the coronavirus bear market in early 2020, and things are looking up for the company's future. Analysts at Citi jumped on the bandwagon, upgrading Alcoa from neutral to buy and setting a $52-per-share price target.
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Several Wall Street analysts gave positive comments on individual stocks on Friday, and two of the most interesting calls were on Cintas (NASDAQ: CTAS) and Alcoa (NYSE: AA). Baird upgraded the stock from neutral to outperform, saying it believes that Cintas offers true growth opportunities that should help boost the stock, with valuations that aren't unreasonably high. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Dan Caplinger has no position in any of the stocks mentioned.
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Several Wall Street analysts gave positive comments on individual stocks on Friday, and two of the most interesting calls were on Cintas (NASDAQ: CTAS) and Alcoa (NYSE: AA). Elsewhere, Alcoa's stock fell 4%. Analysts at Citi jumped on the bandwagon, upgrading Alcoa from neutral to buy and setting a $52-per-share price target.
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1015.0
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2021-07-16 00:00:00 UTC
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Noteworthy Friday Option Activity: AA, TXG, SPOT
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AA
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aa-txg-spot-2021-07-16
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 69,049 contracts have traded so far, representing approximately 6.9 million underlying shares. That amounts to about 78.6% of AA's average daily trading volume over the past month of 8.8 million shares. Especially high volume was seen for the $34 strike put option expiring July 16, 2021, with 4,255 contracts trading so far today, representing approximately 425,500 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $34 strike highlighted in orange:
10x Genomics Inc (Symbol: TXG) saw options trading volume of 6,335 contracts, representing approximately 633,500 underlying shares or approximately 77.1% of TXG's average daily trading volume over the past month, of 821,540 shares. Particularly high volume was seen for the $185 strike call option expiring August 20, 2021, with 1,375 contracts trading so far today, representing approximately 137,500 underlying shares of TXG. Below is a chart showing TXG's trailing twelve month trading history, with the $185 strike highlighted in orange:
And Spotify Technology SA (Symbol: SPOT) saw options trading volume of 8,071 contracts, representing approximately 807,100 underlying shares or approximately 72.7% of SPOT's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $220 strike put option expiring January 20, 2023, with 410 contracts trading so far today, representing approximately 41,000 underlying shares of SPOT. Below is a chart showing SPOT's trailing twelve month trading history, with the $220 strike highlighted in orange:
For the various different available expirations for AA options, TXG options, or SPOT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $34 strike put option expiring July 16, 2021, with 4,255 contracts trading so far today, representing approximately 425,500 underlying shares of AA. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 69,049 contracts have traded so far, representing approximately 6.9 million underlying shares. That amounts to about 78.6% of AA's average daily trading volume over the past month of 8.8 million shares.
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Below is a chart showing AA's trailing twelve month trading history, with the $34 strike highlighted in orange: 10x Genomics Inc (Symbol: TXG) saw options trading volume of 6,335 contracts, representing approximately 633,500 underlying shares or approximately 77.1% of TXG's average daily trading volume over the past month, of 821,540 shares. Below is a chart showing SPOT's trailing twelve month trading history, with the $220 strike highlighted in orange: For the various different available expirations for AA options, TXG options, or SPOT options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 69,049 contracts have traded so far, representing approximately 6.9 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 69,049 contracts have traded so far, representing approximately 6.9 million underlying shares. Below is a chart showing AA's trailing twelve month trading history, with the $34 strike highlighted in orange: 10x Genomics Inc (Symbol: TXG) saw options trading volume of 6,335 contracts, representing approximately 633,500 underlying shares or approximately 77.1% of TXG's average daily trading volume over the past month, of 821,540 shares. That amounts to about 78.6% of AA's average daily trading volume over the past month of 8.8 million shares.
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Below is a chart showing AA's trailing twelve month trading history, with the $34 strike highlighted in orange: 10x Genomics Inc (Symbol: TXG) saw options trading volume of 6,335 contracts, representing approximately 633,500 underlying shares or approximately 77.1% of TXG's average daily trading volume over the past month, of 821,540 shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 69,049 contracts have traded so far, representing approximately 6.9 million underlying shares. That amounts to about 78.6% of AA's average daily trading volume over the past month of 8.8 million shares.
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1016.0
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2021-07-15 00:00:00 UTC
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After-Hours Earnings Report for July 15, 2021 : WAL, PBCT, AA, VLRS, MRTN
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AA
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-july-15-2021-%3A-wal-pbct-aa-vlrs-mrtn-2021-07-15
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nan
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nan
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The following companies are expected to report earnings after hours on 07/15/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Western Alliance Bancorporation (WAL)is reporting for the quarter ending June 30, 2021. The bank (west) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.02. This value represents a 117.20% increase compared to the same quarter last year. In the past year WAL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 30.14%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for WAL is 11.62 vs. an industry ratio of 13.10.
People's United Financial, Inc. (PBCT)is reporting for the quarter ending June 30, 2021. The savings & loan company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.32. This value represents a 33.33% increase compared to the same quarter last year. In the past year PBCT has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PBCT is 12.86 vs. an industry ratio of 13.70.
Alcoa Corporation (AA)is reporting for the quarter ending June 30, 2021. The metal production company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.35. This value represents a 6850.00% increase compared to the same quarter last year. In the past year AA has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 64.58%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AA is 7.26 vs. an industry ratio of 14.50.
Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS)is reporting for the quarter ending June 30, 2021. The airline company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.07. This value represents a 90.14% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for VLRS is -275.13 vs. an industry ratio of -29.20.
Marten Transport, Ltd. (MRTN)is reporting for the quarter ending June 30, 2021. The truck company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.26. This value represents a 18.18% increase compared to the same quarter last year. In the past year MRTN has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 10%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MRTN is 16.43 vs. an industry ratio of 18.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Corporation (AA)is reporting for the quarter ending June 30, 2021. In the past year AA has beat the expectations every quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AA is 7.26 vs. an industry ratio of 14.50.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for AA is 7.26 vs. an industry ratio of 14.50. Alcoa Corporation (AA)is reporting for the quarter ending June 30, 2021. In the past year AA has beat the expectations every quarter.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for AA is 7.26 vs. an industry ratio of 14.50. Alcoa Corporation (AA)is reporting for the quarter ending June 30, 2021. In the past year AA has beat the expectations every quarter.
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In the past year AA has beat the expectations every quarter. Alcoa Corporation (AA)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AA is 7.26 vs. an industry ratio of 14.50.
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1017.0
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2021-07-15 00:00:00 UTC
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Thursday's ETF with Unusual Volume: FYT
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AA
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https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-fyt-2021-07-15
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nan
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nan
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The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Shares of FYT were down about 0.4% on the day.
Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%.
VIDEO: Thursday's ETF with Unusual Volume: FYT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%.
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The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. VIDEO: Thursday's ETF with Unusual Volume: FYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%.
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Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. VIDEO: Thursday's ETF with Unusual Volume: FYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1018.0
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2021-07-15 00:00:00 UTC
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Alcoa (AA) Q2 Earnings: What to Expect
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AA
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https://www.nasdaq.com/articles/alcoa-aa-q2-earnings%3A-what-to-expect-2021-07-15
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nan
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nan
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A
fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. Shares of the aluminum giant have been one of the bright spots in the materials sector, rising almost 50% over the past six months and is now up 60% year to date, almost doubling the 30.5% rise in the SPDR S&P Metals & Mining ETF (XME).
Can these gains hold or will they lose their luster? The aluminum giant is set to report second quarter fiscal 2021 earnings results after the closing bell Thursday. Alcoa management, which has focused on scaling the alumina and aluminum production segment, has done an exceptional jobs exiting non-core businesses, while improving operating efficiency. Aside from Alcoa’s own strong operational performance, the company is being rewarded for an improved balance sheet and its overall financial position.
Specifically, from a cash flow standpoint, an argument can be made that Alcoa is undervalued. It also helps that investors have flocked to metals stocks due to optimism surrounding the Biden administration’s infrastructure spending plan that is aimed at repairing the country’s airports, roads and bridges, among other projects. How much of that money will come to Alcoa? The company last quarter posted its eleventh consecutive quarterly profit beat, thanks to improving aluminum business. And the outlook for aluminum in 2021 continues to look far better than it did at any point over the past year.
Recently, analyst Carlos De Alba of Morgan Stanley noted that mining stocks remain cheap despite their strong 18-month performance. De Alba expects by year-end 2022 for global investment to reach 121% of pre-recession levels, topping its average path for the past decade. While there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
For the quarter that ended June, Wall Street expects the New York-based company to earn $1.43 per share on revenue of $2.64 billion. This compares to the year-ago quarter when it posted a loss of 2 cents per share on revenue of $2.11 billion. For the full year, ending in December, earnings are projected to be $4.27 per share, up from a loss of $1.16 a year ago, while full-year revenue of $10.82 billion would rise 12.1% year over year.
The quarterly and yearly upbeat revenue and profit forecasts are impressive when considering where these estimates were at the height of the pandemic as the company dealt with oversupply conditions which has been the result of lowered demand and suspending operations. Citing a recovering global economy, Alcoa now projects growth ahead of estimates for the next several quarters. For 2021, the company is targeting for roughly 7% demand growth, which would outpace supply.
This optimism was driven by an improving first quarter, during which Alcoa’s adjusted EBITDA surged 44% sequentially to $521 million. Driven by a 20% sequential rise, the company beat on both the top and bottom lines, reporting revenue of $2.87 billion and a net profit of $175 million, both of which were its highest in three years. On Thursday Alcoa, which projected confidence for the underlying business, will beed to keep the pedal to metal for the stock to keep rising.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. Alcoa management, which has focused on scaling the alumina and aluminum production segment, has done an exceptional jobs exiting non-core businesses, while improving operating efficiency. It also helps that investors have flocked to metals stocks due to optimism surrounding the Biden administration’s infrastructure spending plan that is aimed at repairing the country’s airports, roads and bridges, among other projects.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. The company last quarter posted its eleventh consecutive quarterly profit beat, thanks to improving aluminum business. For the full year, ending in December, earnings are projected to be $4.27 per share, up from a loss of $1.16 a year ago, while full-year revenue of $10.82 billion would rise 12.1% year over year.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. The company last quarter posted its eleventh consecutive quarterly profit beat, thanks to improving aluminum business. While there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. The company last quarter posted its eleventh consecutive quarterly profit beat, thanks to improving aluminum business. While there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
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1019.0
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2021-07-14 00:00:00 UTC
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What’s Next For Alcoa Stock After Its 50% Rally?
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AA
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https://www.nasdaq.com/articles/whats-next-for-alcoa-stock-after-its-50-rally-2021-07-14
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nan
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nan
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Alcoa stock (NYSE: AA) has increased almost 50% in the last six months and currently trades at over $37 per share. The rally was driven by an increase in global aluminum prices over recent months. The gradual lifting of lockdowns and widening coverage of vaccines against Covid-19 has led to optimism in the markets of faster economic recovery. Additionally, the stimulus measures will drive infrastructure spending which has led to the rally in global prices of commodities. Aluminum price per ton has increased almost 25% in the last six months from $2,009 to more than $2,500, which has driven a sharp rise in Alcoa’s stock. But will Alcoa’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely?
According to the Trefis Machine Learning Engine, which identifies trends in a company’s historical stock price data, returns for Alcoa stock average more than 8% in the next one-month (21 trading days) period after experiencing a 49% rise over the previous six-month (126 trading days) period. The stock has a 58% probability of giving a positive return in the next month. But how would these numbers change if you are interested in holding Alcoa stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test Alcoa stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF Alcoa stock moved by -5% over 5 trading days, THEN over the next 21 trading days, Alcoa stock moves an average of almost 3 percent, with a more than 49% probability of a positive return.
Some Fun Scenarios, FAQs & Making Sense of Alcoa Stock Movements:
Question 1: Is the average return for Alcoa stock higher after a drop?
Answer:
Consider two situations,
Case 1: Alcoa stock drops by -5% or more in a week
Case 2: Alcoa stock rises by 5% or more in a week
Is the average return for Alcoa stock higher over the subsequent month after Case 1 or Case 2?
AA stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Alcoa stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Alcoa stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although AA stock appears to be an exception to this general observation.
AA’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Alcoa stock by changing the inputs in the charts above.
While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa stock (NYSE: AA) has increased almost 50% in the last six months and currently trades at over $37 per share. AA stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.6% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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Alcoa stock (NYSE: AA) has increased almost 50% in the last six months and currently trades at over $37 per share. AA stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.6% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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Alcoa stock (NYSE: AA) has increased almost 50% in the last six months and currently trades at over $37 per share. AA stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.6% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while? Alcoa stock (NYSE: AA) has increased almost 50% in the last six months and currently trades at over $37 per share. AA stock fares better after Case 2, with an average return of 2.9% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.6% for Case 2.
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1020.0
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2021-07-12 00:00:00 UTC
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Alcoa (NYSE:AA) Takes On Some Risk With Its Use Of Debt
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AA
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https://www.nasdaq.com/articles/alcoa-nyse%3Aaa-takes-on-some-risk-with-its-use-of-debt-2021-07-12
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nan
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The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Alcoa Corporation (NYSE:AA) makes use of debt. But is this debt a concern to shareholders?
When Is Debt A Problem?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we examine debt levels, we first consider both cash and debt levels, together.
How Much Debt Does Alcoa Carry?
You can click the graphic below for the historical numbers, but it shows that as of March 2021 Alcoa had US$2.96b of debt, an increase on US$1.80b, over one year. However, it also had US$2.54b in cash, and so its net debt is US$415.0m.
NYSE:AA Debt to Equity History July 12th 2021
How Healthy Is Alcoa's Balance Sheet?
According to the last reported balance sheet, Alcoa had liabilities of US$3.22b due within 12 months, and liabilities of US$6.84b due beyond 12 months. Offsetting this, it had US$2.54b in cash and US$677.0m in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$6.84b.
This deficit is considerable relative to its market capitalization of US$6.99b, so it does suggest shareholders should keep an eye on Alcoa's use of debt. Should its lenders demand that it shore up the balance sheet, shareholders would likely face severe dilution.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
Looking at its net debt to EBITDA of 0.33 and interest cover of 3.8 times, it seems to us that Alcoa is probably using debt in a pretty reasonable way. But the interest payments are certainly sufficient to have us thinking about how affordable its debt is. Notably Alcoa's EBIT was pretty flat over the last year. We would prefer to see some earnings growth, because that always helps diminish debt. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Alcoa's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the last three years, Alcoa reported free cash flow worth 12% of its EBIT, which is really quite low. For us, cash conversion that low sparks a little paranoia about is ability to extinguish debt.
Our View
To be frank both Alcoa's conversion of EBIT to free cash flow and its track record of staying on top of its total liabilities make us rather uncomfortable with its debt levels. But on the bright side, its net debt to EBITDA is a good sign, and makes us more optimistic. Looking at the balance sheet and taking into account all these factors, we do believe that debt is making Alcoa stock a bit risky. Some people like that sort of risk, but we're mindful of the potential pitfalls, so we'd probably prefer it carry less debt. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example - Alcoa has 1 warning sign we think you should be aware of.
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As with many other companies Alcoa Corporation (NYSE:AA) makes use of debt. NYSE:AA Debt to Equity History July 12th 2021 How Healthy Is Alcoa's Balance Sheet? The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'
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As with many other companies Alcoa Corporation (NYSE:AA) makes use of debt. NYSE:AA Debt to Equity History July 12th 2021 How Healthy Is Alcoa's Balance Sheet? According to the last reported balance sheet, Alcoa had liabilities of US$3.22b due within 12 months, and liabilities of US$6.84b due beyond 12 months.
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As with many other companies Alcoa Corporation (NYSE:AA) makes use of debt. NYSE:AA Debt to Equity History July 12th 2021 How Healthy Is Alcoa's Balance Sheet? We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).
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As with many other companies Alcoa Corporation (NYSE:AA) makes use of debt. NYSE:AA Debt to Equity History July 12th 2021 How Healthy Is Alcoa's Balance Sheet? However, it also had US$2.54b in cash, and so its net debt is US$415.0m.
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1021.0
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2021-07-11 00:00:00 UTC
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Weekly Preview: Earnings to Watch This Week (AA, JPM, PEP, WFC)
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AA
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https://www.nasdaq.com/articles/weekly-preview%3A-earnings-to-watch-this-week-aa-jpm-pep-wfc-2021-07-11
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nan
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nan
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D
espite recent concerns about global economic growth amid the pandemic, tons of optimism for risk assets still remain. Stocks ended Friday near all-time highs, booking a third consecutive week of gains. And it’s not hard to understand why. There continues to be no better alternative than the stock market as a means to counter rising inflation.
But with the second quarter earnings season kicking off this coming week, the question that keeps coming up surrounds whether growth expectations and optimism surrounding the economic recovery are well placed. Stocks aren’t cheap when compared to the S&P 500’s historical metrics such as price-to-sales and price-to-earnings. As such, it will take impressive revenue and earnings beats and confidence guidance to keep the momentum going.
On Friday, the Dow Jones Industrial Average rose 448.23 points, or 1.30%, to close at 34,870.16. Strong performances this week in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped power the Dow to record highs. The S&P 500 index SPX rose 48.73 points, or 1.1%, to end the session at 4,369.55, while the Nasdaq Composite gained 0.51%, adding 142.13 points to finish at 14,701.92. The tech-heavy index has accelerated over the past two weeks, thanks the FAANGs, namely Facebook (FB), Apple and Amazon (AMZN), which notched new all-time highs this week.
For the week, both the Dow and S&P 500 logged respective gains of 0.2% and 0.4%. The Nasdaq also gained 0.4% for the week, reversing what started off Friday morning as a loss of 0.3%. Friday’s strong rebound in all three benchmarks was a reversal from Thursday’s declines on fears of a slowing global recovery due to the rise of the Delta variant of the coronavirus pandemic and the impact it will have on some countries. On Friday, however, it appears that the focus turned to the second quarter earnings season.
The market is now seemingly in a see-saw battle between corporate earnings and the guidance that will be provided versus the potential impact of an increase spread and possible delay in a global re-opening. But there’s also good news. Aside from widespread vaccinations across the U.S., which some analysts forecast will lead to a surge in economic growth, there’s also the infrastructure spending plan proposed by the Biden administration. These catalysts are factored into the the growth expectations not only for the second quarter, but also for the third and fourth quarters as well.
As such, when evaluating stocks and valuations, the question is whether all of this potential good news are already priced in to stocks. From my perspective, the risk-versus-reward potential in relation to the pace of re-opening continues to look favorable. The market will get some confirmation once CEOs start issuing guidance, presumably that are far more optimistic than they were a year ago. That said, conservative guidance won’t work given where stocks are. Here are this week’s names that will set the tone for what’s to come in the weeks ahead.
JPMorgan Chase (JPM) - Reports before the open, Tuesday, Jul. 13
Wall Street expects JPMorgan to earn $3.17 per share on revenue of $30.02 billion. This compares to the year-ago quarter when earnings came to $1.38 per share on revenue of $30.29 billion.
What to watch: Without question, JPMorgan has established a well-deserved reputation as being the best-executing bank not only among its peer group, but one of the best-run banks in the world. Driven by its ongoing investments in areas like technology, marketing, the bank’s share price has outperformed its competitors over the past six months and twelve months. And given its organic expansion initiatives to develop new branches/loan offices, these growth trends are poised to continue. But with the stock trading almost 20% higher than pre-pandemic levels, all of this good news I’ve just listed are known by the market evidenced by 22.6% year to date rise in JPMorgan stock, compared to 16% rise in the S&P 500 index. What additional catalysts, whether near term or long term, will drive JPM stock higher, particularly in the low-interest rate environment? That is the answer the market will listen for on Tuesday.
PepsiCo (PEP) - Reports before the open, Tuesday, Jul. 13
Wall Street expects PepsiCo to deliver EPS of $1.53 per share on revenue of $17.97 billion. This compares to the year-ago quarter when earnings were $1.32 per share on $15.38 billion in revenue.
What to watch: The snack and beverage giant has seen its stock trade flat year to date, trailing the 16% rise in the S&P 500 index. And with the stock rising just 13% over the past year, compared to the 38% rise in the S&P 500, this suggests investors’ expectations are more tempered than a year ago. Notably, Pepsi has underperformed despite reporting not only rapid organic sales growth, but also strong free cash flow in 2020 amid the pandemic. During which, Pepsi (at various times) has been impacted due to the lockdown restrictions and the effect this has had on the restaurant industry that Pepsi supplies beverage to. The company is investing in new brands and adapting to new trends which has begun to pay dividends evidenced by the 6% rise in organic revenue growth in the last quarter. Unit volume was also strong for food/snacks, while rising by mid-single digits for beverages. The company still believes that there is plenty of room for growth in its core snacks and beverages business. On Tuesday Pepsi will need to demonstrate that growth.
Wells Fargo (WFC) - Reports before the open, Wednesday, Jul. 14
Wall Street expects Wells Fargo to earn 96 cents per share on revenue of $17.82 billion. This compares to the year-ago quarter when it lost of 66 cents per share on revenue of $17.84 billion.
What to watch: Wells Fargo stock has been a hot commodity among the banks, skyrocketing more than 30% over the past six months. With the stock now up 45% year to date, besting the 16% rise in the S&P 500 index, the market appears willing to look beyond some of the bank’s legacy issues and certainly some near-term headwinds. While there are still plenty of challenges for Wells Fargo, including the fact that it has to balance much-needed cost cuts with revenue/business growth, the bank has nonetheless executed as well as anyone might have expected. Not only has the bank’s charge-offs and core provisioning improved over the past few quarters, Wells Fargo’s adjusted expenses are also trending in the right direction, helping to deliver beat on the bottom lines. Notably, this is with revenue generation still under pressure by both the weaker rate environment and the adjustments Wells Fargo has had to make to stay in compliance with the asset cap. The question remains whether the bank has enough catalysts to sustain profitability and return value to shareholders.
Alcoa (AA) - Reports after the close, Thursday, Jul. 15
Wall Street expects Alcoa to earn $1.43 per share on revenue of $2.64 billion. This compares to the year-ago quarter when it posted a loss of 2 cents per share on revenue of $2.11 billion.
What to watch: Shares of the aluminum giant have been one of the bright spots in the materials sector, rising almost 50% over the past six months and is now up 60% year to date, almost doubling the 30.5% rise in the SPDR S&P Metals & Mining ETF (XME). The rise in metal stocks have been driven by optimism surrounding the Biden administration’s infrastructure spending plan that is aimed at repairing the country’s airports, roads and bridges, among other projects. How much of that money will come to Alcoa? The company last quarter posted its eleventh consecutive quarterly profit beat, thanks to improving aluminum business. While there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong performances this week in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped power the Dow to record highs. The tech-heavy index has accelerated over the past two weeks, thanks the FAANGs, namely Facebook (FB), Apple and Amazon (AMZN), which notched new all-time highs this week. Alcoa (AA) - Reports after the close, Thursday, Jul.
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Strong performances this week in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped power the Dow to record highs. The tech-heavy index has accelerated over the past two weeks, thanks the FAANGs, namely Facebook (FB), Apple and Amazon (AMZN), which notched new all-time highs this week. Alcoa (AA) - Reports after the close, Thursday, Jul.
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Strong performances this week in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped power the Dow to record highs. The tech-heavy index has accelerated over the past two weeks, thanks the FAANGs, namely Facebook (FB), Apple and Amazon (AMZN), which notched new all-time highs this week. Alcoa (AA) - Reports after the close, Thursday, Jul.
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Strong performances this week in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped power the Dow to record highs. The tech-heavy index has accelerated over the past two weeks, thanks the FAANGs, namely Facebook (FB), Apple and Amazon (AMZN), which notched new all-time highs this week. Alcoa (AA) - Reports after the close, Thursday, Jul.
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1022.0
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2021-06-30 00:00:00 UTC
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3 Industrial Stocks To Watch In July 2021
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AA
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https://www.nasdaq.com/articles/3-industrial-stocks-to-watch-in-july-2021-2021-06-30
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nan
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nan
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Are These The Best Industrial Stocks To Buy In July?
Industrial stocks are once again in focus this week thanks to the recent infrastructure bill from the White House. For the most part, this would add to the overall tailwinds seen by the industrial sector in the stock market now. This would be the case with companies in the industrial space playing crucial roles in the current economic recovery. For the uninitiated, industrial stocks consist of companies that manufacture and distribute capital goods and provide related services. The likes of which are generally used in construction and manufacturing, highly relevant processes in Biden’s infrastructure plan.
Now, when it comes to the industrial sector, investors appear to be spoilt for choices. To begin with, we could look at the mining and metals industry. Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) provide the precious raw materials needed by most manufacturing operations today. In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an Outperform rating, naming it a top pick. At the same time, industrial companies such as Boeing (NYSE: BA) in the aerospace area are also kicking into high gear. Earlier this week, the company received a massive 270 aircraft order from United Airlines (NASDAQ: UAL).
By and large, top industrial stocks are looking at major tailwinds across the board now. On one hand, there is the current trajectory of the economy, which the sector often follows closely. On the other hand, $579 billion worth of investments would serve to accelerate growth in the industrial market as well. All in all, I could see industrials being among the most active stocks in the stock market today. With that said, here are three names to know now.
Best Industrial Stocks To Buy [Or Sell] Today
General Electric Company (NYSE: GE)
Caterpillar Inc. (NYSE: CAT)
Applied Materials Inc. (NASDAQ: AMAT)
General Electric Company
General Electric (GE) is a multinational industrial company that is headquartered in Boston. The company operates through many industries that are vital to economies all around the world. Notably, the company has been investing heavily in its renewable energy and healthcare segments. GE Renewable Energy is a $15.7 billion business that combines one of the broadest portfolios in the renewable energy industry to provide end-to-end solutions for its customers. GE stock currently trades at $13.44 as of 1:39 p.m. ET and has been up by over 25% year-to-date.
Today, the company announced that GE Renewable Energy has connected the last unit of the Wudongde (WDD) hydropower station to the grid for power generation. Under the contract that was signed in 2015, GE was responsible for the design, manufacturing, and commissioning of the 6 x 850 MW Francis turbines generator sets and related equipment for the WDD hydropower project. A single Francis turbine can generate enough power for approximately 1.8 million typical Chinese homes.
Not resting on its laurels, the company also announced today that GE Healthcare has a new partnership with the Ministry of Health of the Democratic Republic of Congo to deliver mobile X-ray units and ECG machines to help efforts to fight the pandemic. Last week, the company reported that GE Healthcare and Wayra have selected five health tech start-ups. The start-ups will focus on applying AI to augment medical imaging, improve oncology care, and improve the patient experience. Estimates suggest that over 400,000 European lives could be saved annually through the application of AI in healthcare. Given the excitement surrounding the company, is GE stock worth adding to your portfolio?
Source: TD Ameritrade TOS
Read More
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Top Gaming Stocks To Buy Now? 4 Names To Watch
Caterpillar Inc.
Caterpillar is an industrial company that designs and sells machinery. In essence, the company is the world’s leading manufacturer of construction and mining equipment. It also manufactures diesel and natural gas engines, along with industrial gas turbines. CAT stock currently trades at $216.80 as of 1:40 p.m. ET and has been up by over 65% in the last year.
On June 9, 2021, the company’s board of directors voted to increase the quarterly cash dividend by 8% to $1.11 per share of common stock that will be payable on August 20, 2021. “Through the execution of our enterprise strategy for profitable growth, Caterpillar is generating higher free cash flow through the cycles,” said Caterpillar CEO Jim Umpleby. “Our strong balance sheet and liquidity position make it possible for us to continue our long history of increasing our dividend and returning value to shareholders.”
In late April, the company also recorded strong first-quarter 2021 financials. Diving in, sales and revenue increased by 12% year-over-year to $11.9 billion. This increase was due to higher sales volume driven by higher end-user demand and also from the impact of changes in dealer inventories. Its first-quarter earnings per share were $2.27 and it ended the quarter with $11.3 billion of enterprise cash on hand. With that in mind, is CAT stock worth buying right now?
Source: TD Ameritrade TOS
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
Applied Materials Inc.
Following that, we have Applied Materials Inc (AMAT). In brief, the California-based company is a leading name in terms of materials engineering solutions. Primarily, AMAT specializes in providing the necessary equipment, services, and software for the semiconductor manufacturing industry. Notably, the company achieves this via its expertise in modifying materials at atomic levels and on industrials scales. Given AMAT’s vital role in enabling the semiconductor industry, AMAT stock would be in the spotlight now. With the latest global chip shortage, manufacturers would be looking to ramp up production capacities. In theory, this could lead to AMAT seeing higher demand for its offerings.
Evidently, the company saw green across the board in its recent quarter fiscal posted in May. In it, AMAT raked in total revenue of $5.58 billion for the quarter, marking a sizable 41% year-over-year jump. On top of that, the company also saw solid year-over-year surges of 76% in net income and 74% in earnings per share. CEO Gary Dickerson cited broad-based strength across AMAT’s semiconductor business as a key factor for the company’s performance. According to Dickerson, AMAT is confident in its ability to outperform its markets thanks to existing secular trends.
On the operational front, the company continues to break new ground as well. Earlier this month, AMAT revealed a new way to engineer the wiring of advanced logic chips. The main highlight of this breakthrough is that AMAT can scale said chips to nodes as small as 3 nanometers. In terms of application, Senior VP Prabu Raja explained, “This unique, integrated solution is designed to accelerate the performance, power, and area-cost roadmaps of our customers.” With AMAT seemingly firing on all cylinders now, would you consider AMAT stock a top buy now?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an Outperform rating, naming it a top pick. Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) provide the precious raw materials needed by most manufacturing operations today. Under the contract that was signed in 2015, GE was responsible for the design, manufacturing, and commissioning of the 6 x 850 MW Francis turbines generator sets and related equipment for the WDD hydropower project.
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Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) provide the precious raw materials needed by most manufacturing operations today. In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an Outperform rating, naming it a top pick. Best Industrial Stocks To Buy [Or Sell] Today General Electric Company (NYSE: GE) Caterpillar Inc. (NYSE: CAT) Applied Materials Inc. (NASDAQ: AMAT) General Electric Company General Electric (GE) is a multinational industrial company that is headquartered in Boston.
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Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) provide the precious raw materials needed by most manufacturing operations today. In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an Outperform rating, naming it a top pick. For the uninitiated, industrial stocks consist of companies that manufacture and distribute capital goods and provide related services.
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Companies such as Alcoa (NYSE: AA) and Vale (NYSE: VALE) provide the precious raw materials needed by most manufacturing operations today. In fact, Morgan Stanley (NYSE: MS) analyst Carlos De Alba recently hit AA stock with an Outperform rating, naming it a top pick. Source: TD Ameritrade TOS Read More 4 Top EV Charging Stocks To Watch This Week Top Gaming Stocks To Buy Now?
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1023.0
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2021-06-23 00:00:00 UTC
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Why Falling Homebuilder Stocks Look Like a Buy
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AA
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https://www.nasdaq.com/articles/why-falling-homebuilder-stocks-look-like-a-buy-2021-06-23
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nan
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nan
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I
n his testimony to Congress yesterday, Fed Chair Jay Powell stood up to politicians from both sides of the aisle. There was a lot of pressure from Republicans to say that 1970s style hyperinflation was coming but Powell refused to say so. Rather, he said that scenario was “very, very unlikely.” Powell also did not yield to pressures from Democrats, who seemingly wanted him to say that increasing government debt to hand out cash and boosting the already high government spending has had no inflationary effect. He did admit in his prepared remarks that inflation was here to stay in the short-term. However, his comments suggested that the Federal Reserve was not going to be panicked into hiking rates any time soon.
From an investor’s perspective, this means that two seemingly contradictory statements can be true. As I wrote yesterday, companies that benefit from short-term inflationary pressures, such as Alcoa (AA), have a good short-to-medium-term outlook. But, at the same time, the selloff activity related to interest rate hikes can be seen as premature and overdone. As long as the Fed believes in what Powell stated, which is that this is just a temporary phenomenon, prices can continue to rise, and rates will stay low.
There are a couple of stocks that have been sold as if a rate hike is expected any day, creating some great value for bargain hunters.
Take, for example, homebuilders such as KB Homes (KBH) and Beazer (BZH). Both stocks are down significantly from their highs around a month ago, even though the housing market has been booming. The Case-Schiller national house price index is rising at an annual rate of 13% and currently, there are many cases where housing buyers have to beat out many competitors. For example, my son recently had to beat out 47 other buyers to purchase a house in the Dallas area. And yet, stocks have been sold off, resulting in charts that look like this going back to early May:
I guess this would make sense if the high demand and rapidly rising prices for products had led to sky-high P/Es, but that is absolutely not the case. Right now, KB Homes has trailing and forward P/Es of 12 and 7.6, respectively, and Beazer is even cheaper at 8 and 3.5. Obviously, valuation isn’t the issue, and nor is liquidity. Both companies have decent balance sheets and strong free cash flow. So, the only explanation for the 15% to 20% declines in the stock prices is the belief that something will happen that will negatively impact demand, perhaps something like a rate hike.
There are two points to be made here. The first is that Jay Powell’s testimony yesterday, combined with the statement following the most recent FOMC meeting, make that look unlikely. The second is that, even if it were to happen, mortgages would still be cheap as wages start to increase. A 25-basis point hike of the Federal Funds Rate may change the tone, but the immediate practical impact on home buyers will be limited. One could even argue that a policy reversal with the prospect of further rate increases would motivate even more homebuyers to make the move now.
All in all, with input costs for homebuilders steadying as commodity and lumber prices retrace, along with no imminent rate hike and a continued high demand, the short and medium term prospects for homebuilders look good. This means stocks like KBH and BZH are too cheap and their recent selloffs are an opportunity for investors, not a warning.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As I wrote yesterday, companies that benefit from short-term inflationary pressures, such as Alcoa (AA), have a good short-to-medium-term outlook. As long as the Fed believes in what Powell stated, which is that this is just a temporary phenomenon, prices can continue to rise, and rates will stay low. And yet, stocks have been sold off, resulting in charts that look like this going back to early May: I guess this would make sense if the high demand and rapidly rising prices for products had led to sky-high P/Es, but that is absolutely not the case.
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As I wrote yesterday, companies that benefit from short-term inflationary pressures, such as Alcoa (AA), have a good short-to-medium-term outlook. Take, for example, homebuilders such as KB Homes (KBH) and Beazer (BZH). All in all, with input costs for homebuilders steadying as commodity and lumber prices retrace, along with no imminent rate hike and a continued high demand, the short and medium term prospects for homebuilders look good.
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As I wrote yesterday, companies that benefit from short-term inflationary pressures, such as Alcoa (AA), have a good short-to-medium-term outlook. The Case-Schiller national house price index is rising at an annual rate of 13% and currently, there are many cases where housing buyers have to beat out many competitors. So, the only explanation for the 15% to 20% declines in the stock prices is the belief that something will happen that will negatively impact demand, perhaps something like a rate hike.
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As I wrote yesterday, companies that benefit from short-term inflationary pressures, such as Alcoa (AA), have a good short-to-medium-term outlook. The Case-Schiller national house price index is rising at an annual rate of 13% and currently, there are many cases where housing buyers have to beat out many competitors. So, the only explanation for the 15% to 20% declines in the stock prices is the belief that something will happen that will negatively impact demand, perhaps something like a rate hike.
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1024.0
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2021-06-22 00:00:00 UTC
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Fed Chair's Testimony to Support Inflation Trades: Here’s One Stock to Consider
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AA
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https://www.nasdaq.com/articles/fed-chairs-testimony-to-support-inflation-trades%3A-heres-one-stock-to-consider-2021-06-22
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nan
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nan
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F
ed Chair Jerome Powell is set to appear before the U.S. House of Representatives Select Subcommittee on the Coronavirus Crisis today, and the prepared testimony includes the words: “Inflation has increased notably in recent months.”
This is a more direct admission on the state of the economy than what we are used to hearing from the usually cautious Powell. He believes that these price increases are “transitory,” and that inflation will behave soon, falling back to the Fed’s long-term 2% goal.
From an investing perspective, that means that while material and commodity prices may increase at a slower rate in the future, they will stay elevated and keep increasing. However, most recently, a lot of materials stocks have dropped significantly from their highs.
An example of this is the aluminum giant, Alcoa (AA).
One could argue that the run up in AA in the first five months of this year was a bit overdone and that too much of the expected recovery was priced in. That, however, involves a lot of speculation. But, there is clear, hard evidence that the pullback has gone too far. As you might expect, it has coincided with a retracement in aluminum price, but while the commodity has dropped only around 6.5% from its May 7 high, AA is down 25% from its May 10 peak.
In addition to that, the rising prices that we have seen in aluminum and other commodities haven’t restricted demand as basic economic theory would suggest they should. Instead, global demand is still increasing at a good rate as economies recover from the shock of the pandemic. There is a demand backlog that is only just beginning to unwind, and fiscal and monetary stimulus around the world is limiting the dampening impact on that growth of higher input prices.
Those are the classic conditions for problematic inflation, but that won’t be a real factor unless the vicious circle of inflation really takes hold where higher input prices leads to higher product prices and demand for higher wages, and then this leading to an increase in input prices and higher product prices, and so on.
Until then, a company like Alcoa will be in a situation where demand for their product remains strong, even at price levels not seen since the boom days of 2007. And yet, after the recent retracement, AA is trading at a forward P/E of 8.94 and a price/sales ratio of 0.67. That still looks like value to me, and it seems that buying the stock around current levels offers significant upside should it push back to new highs with limited downside if you utilize a stop-loss just below $30. I guess we could get to that level and hit a wall, but what we have seen recently is a series of mini rotations between growth and value stocks. Recently, growth has been back in favor, which means value is coming back soon. When it does, Alcoa can be expected to bounce quickly.
So, even if you believe Powell is right and inflation is merely transitory, I believe that stocks like AA can continue to benefit from those conditions.
Do you want more of Martin? If you are familiar with Martin’s work, you will know that he brings a unique perspective to markets and actionable ideas based on that perspective. In addition to writing here, Martin also writes a free weekly newsletter with in-depth analysis and trade ideas focused on just one recently underperforming sector that is bouncing fast. To find out more and sign up for the free newsletter, just click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An example of this is the aluminum giant, Alcoa (AA). One could argue that the run up in AA in the first five months of this year was a bit overdone and that too much of the expected recovery was priced in. As you might expect, it has coincided with a retracement in aluminum price, but while the commodity has dropped only around 6.5% from its May 7 high, AA is down 25% from its May 10 peak.
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An example of this is the aluminum giant, Alcoa (AA). One could argue that the run up in AA in the first five months of this year was a bit overdone and that too much of the expected recovery was priced in. As you might expect, it has coincided with a retracement in aluminum price, but while the commodity has dropped only around 6.5% from its May 7 high, AA is down 25% from its May 10 peak.
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An example of this is the aluminum giant, Alcoa (AA). One could argue that the run up in AA in the first five months of this year was a bit overdone and that too much of the expected recovery was priced in. As you might expect, it has coincided with a retracement in aluminum price, but while the commodity has dropped only around 6.5% from its May 7 high, AA is down 25% from its May 10 peak.
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As you might expect, it has coincided with a retracement in aluminum price, but while the commodity has dropped only around 6.5% from its May 7 high, AA is down 25% from its May 10 peak. An example of this is the aluminum giant, Alcoa (AA). One could argue that the run up in AA in the first five months of this year was a bit overdone and that too much of the expected recovery was priced in.
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1025.0
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2021-06-21 00:00:00 UTC
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We Did The Math IYM Can Go To $142
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AA
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https://www.nasdaq.com/articles/we-did-the-math-iym-can-go-to-%24142-2021-06-21
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Basic Materials ETF (Symbol: IYM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $141.72 per unit.
With IYM trading at a recent price near $127.61 per unit, that means that analysts see 11.06% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYM's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Ingevity Corp (Symbol: NGVT), and Reliance Steel & Aluminum Co. (Symbol: RS). Although AA has traded at a recent price of $32.08/share, the average analyst target is 29.36% higher at $41.50/share. Similarly, NGVT has 16.70% upside from the recent share price of $79.69 if the average analyst target price of $93.00/share is reached, and analysts on average are expecting RS to reach a target price of $173.00/share, which is 15.34% above the recent price of $149.99. Below is a twelve month price history chart comparing the stock performance of AA, NGVT, and RS:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares U.S. Basic Materials ETF IYM $127.61 $141.72 11.06%
Alcoa Corporation AA $32.08 $41.50 29.36%
Ingevity Corp NGVT $79.69 $93.00 16.70%
Reliance Steel & Aluminum Co. RS $149.99 $173.00 15.34%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although AA has traded at a recent price of $32.08/share, the average analyst target is 29.36% higher at $41.50/share. Basic Materials ETF IYM $127.61 $141.72 11.06% Alcoa Corporation AA $32.08 $41.50 29.36% Ingevity Corp NGVT $79.69 $93.00 16.70% Reliance Steel & Aluminum Co. RS $149.99 $173.00 15.34% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IYM's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Ingevity Corp (Symbol: NGVT), and Reliance Steel & Aluminum Co. (Symbol: RS).
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Three of IYM's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Ingevity Corp (Symbol: NGVT), and Reliance Steel & Aluminum Co. (Symbol: RS). Basic Materials ETF IYM $127.61 $141.72 11.06% Alcoa Corporation AA $32.08 $41.50 29.36% Ingevity Corp NGVT $79.69 $93.00 16.70% Reliance Steel & Aluminum Co. RS $149.99 $173.00 15.34% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AA has traded at a recent price of $32.08/share, the average analyst target is 29.36% higher at $41.50/share.
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Three of IYM's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Ingevity Corp (Symbol: NGVT), and Reliance Steel & Aluminum Co. (Symbol: RS). Although AA has traded at a recent price of $32.08/share, the average analyst target is 29.36% higher at $41.50/share. Below is a twelve month price history chart comparing the stock performance of AA, NGVT, and RS: Below is a summary table of the current analyst target prices discussed above:
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Basic Materials ETF IYM $127.61 $141.72 11.06% Alcoa Corporation AA $32.08 $41.50 29.36% Ingevity Corp NGVT $79.69 $93.00 16.70% Reliance Steel & Aluminum Co. RS $149.99 $173.00 15.34% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IYM's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Ingevity Corp (Symbol: NGVT), and Reliance Steel & Aluminum Co. (Symbol: RS). Although AA has traded at a recent price of $32.08/share, the average analyst target is 29.36% higher at $41.50/share.
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1026.0
|
2021-06-18 00:00:00 UTC
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Alcoa (AA) Shares Enter Oversold Territory
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AA
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https://www.nasdaq.com/articles/alcoa-aa-shares-enter-oversold-territory-2021-06-18
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nan
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nan
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $32.33 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Alcoa Corporation, the RSI reading has hit 29.96 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 42.9, the RSI of Spot Gold is at 31.3, and the RSI of Spot Silver is presently 33.3. A bullish investor could look at AA's 29.96 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.4314 per share, with $44.42 as the 52 week high point — that compares with a last trade of $32.48. Alcoa Corporation shares are currently trading down about 3.3% on the day.
Click here to find out what 9 other oversold metals stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at AA's 29.96 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $32.33 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.4314 per share, with $44.42 as the 52 week high point — that compares with a last trade of $32.48.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $32.33 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.4314 per share, with $44.42 as the 52 week high point — that compares with a last trade of $32.48. A bullish investor could look at AA's 29.96 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $32.33 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.4314 per share, with $44.42 as the 52 week high point — that compares with a last trade of $32.48. A bullish investor could look at AA's 29.96 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $32.33 per share. A bullish investor could look at AA's 29.96 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $10.4314 per share, with $44.42 as the 52 week high point — that compares with a last trade of $32.48.
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1027.0
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2021-06-18 00:00:00 UTC
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Why AMC Stock Popped But Express and Alcoa Stocks Dropped This Week
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AA
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https://www.nasdaq.com/articles/why-amc-stock-popped-but-express-and-alcoa-stocks-dropped-this-week-2021-06-18
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nan
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nan
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What happened
It was a tale of two Reddits on Wall Street this week: Meme-stock investors drove shares of AMC Entertainment Holdings (NYSE: AMC) ever higher -- up 22.9%. But they drove shares of Express (NYSE: EXPR) and Alcoa (NYSE: AA) into the basement, down 12.1% and 10.2%, respectively, through Thursday's close.
And that may be the real headline of the week. All of a sudden, it seems Alcoa is now a meme stock.
Image source: Getty Images.
So what
Don't just take it from me -- Bank of America itself made the declaration yesterday. It said Alcoa stock was briefly a favorite of momentum investors, but Alcoa "fell off the top-mentioned list this week," and this may be depressing enthusiasm for the shares.
More substantively, Reuters reported Thursday that China's National Food and Strategic Reserves Administration is preparing to "release metal in batches in near future," selling some of its aluminum and other reserves at below-market prices in an effort to lower production costs and salvage the profit margins of its producers. This promises to pressure aluminum prices at Alcoa -- and is yet another reason for investors to be avoiding the stock.
In contrast, AMC has been the beneficiary of good news -- both on Reddit and off. On Reddit, according to StreetInsider.com, Bank of America says that the movie-theater chain "remains the No. 1 most-discussed stock," boosting its popularity.
And off Reddit, AMC stock benefited from a credit rating upgrade late last week; this was followed Thursday by the beginning of voting on the company's anticipated sale of 25 million shares, which could raise as much as $1.5 billion in new cash to help offset the debt load that AMC accumulated during the pandemic.
Now what
Now, that still leaves the declining stock price of Express to address, and...I'm afraid there's not a whole lot I can tell you about that one. Bank of America was mum on why Express is falling, and there doesn't appear to be a whole lot of substantive news out on the wires this week. At the same time, there does seem to be a lot of frustration among traders venting on Stocktwits.com over the stock's failure to "move" higher in a timely fashion.
The stock's high short interest -- more than 9.5% of the float -- would seem to make Express a good candidate for a short squeeze. But the impatient nature of many momentum traders may simply cause Express to fall out of favor as traders seek easier prey.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But they drove shares of Express (NYSE: EXPR) and Alcoa (NYSE: AA) into the basement, down 12.1% and 10.2%, respectively, through Thursday's close. More substantively, Reuters reported Thursday that China's National Food and Strategic Reserves Administration is preparing to "release metal in batches in near future," selling some of its aluminum and other reserves at below-market prices in an effort to lower production costs and salvage the profit margins of its producers. And off Reddit, AMC stock benefited from a credit rating upgrade late last week; this was followed Thursday by the beginning of voting on the company's anticipated sale of 25 million shares, which could raise as much as $1.5 billion in new cash to help offset the debt load that AMC accumulated during the pandemic.
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But they drove shares of Express (NYSE: EXPR) and Alcoa (NYSE: AA) into the basement, down 12.1% and 10.2%, respectively, through Thursday's close. What happened It was a tale of two Reddits on Wall Street this week: Meme-stock investors drove shares of AMC Entertainment Holdings (NYSE: AMC) ever higher -- up 22.9%. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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But they drove shares of Express (NYSE: EXPR) and Alcoa (NYSE: AA) into the basement, down 12.1% and 10.2%, respectively, through Thursday's close. And off Reddit, AMC stock benefited from a credit rating upgrade late last week; this was followed Thursday by the beginning of voting on the company's anticipated sale of 25 million shares, which could raise as much as $1.5 billion in new cash to help offset the debt load that AMC accumulated during the pandemic. 10 stocks we like better than Alcoa Corporation When our award-winning analyst team has a stock tip, it can pay to listen.
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But they drove shares of Express (NYSE: EXPR) and Alcoa (NYSE: AA) into the basement, down 12.1% and 10.2%, respectively, through Thursday's close. It said Alcoa stock was briefly a favorite of momentum investors, but Alcoa "fell off the top-mentioned list this week," and this may be depressing enthusiasm for the shares. Bank of America was mum on why Express is falling, and there doesn't appear to be a whole lot of substantive news out on the wires this week.
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1028.0
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2021-06-17 00:00:00 UTC
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Alcoa details plans to cut carbon emissions from making alumina
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AA
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https://www.nasdaq.com/articles/alcoa-details-plans-to-cut-carbon-emissions-from-making-alumina-2021-06-17
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nan
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nan
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MELBOURNE, June 17 (Reuters) - Alcoa Corp AA.N detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy.
Among Australia's emissions intensive exports, alumina and aluminium would be the most at risk from carbon border tariffs that the European Union is set to announce in July, says think tank the Australia Institute.
"It's going to take to around 2030 or so before you get the technology ready to roll out...lots of planning will be needed to make this come together," company official Ray Chatfield told a conference in the city of Perth.
The Australian government has issued grants to help decarbonise the alumina refining process by which aluminium is made and which contributes about 24% of the country's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, government agency data show.
But Australia could leverage its abundant renewable power, providing a strategic advantage for building out more green alumina production, Chatfield, Alcoa's global technical manager for refining energy, said.
The process would replace the natural gas used to generate high-pressure steam with compressors that would capture waste vapour to generate heat. Such compressors would be powered by renewable energy supplied from a power grid.
The process would also cut water use by about 25 gigalitres per year, he said.
About 1,200 MW of new renewable power is required to fully implement the mechanical vapour recompression (MVR) process at Australia’s six alumina refineries, three run by Alcoa, two by Rio Tinto RIO.AX and one by South32 S32.AX, Chatfield said.
Last month, Alcoa received a government grant to test the technology at scale at its Wagerup refinery in Western Australia by the end of 2023.
But adapting existing refineries for the new process would call for significant investment of $2 billion to $5 billion each, and the technology needs to be proved before it can be adopted, Chatfield added.
This week, Rio Tinto said it would look to cut carbon from the calcination process, which contributes a further 24% of process emissions, by replacing natural gas with hydrogen. The remaining 6% of emissions comes from power imports.
(Reporting by Melanie Burton; Editing by Clarence Fernandez)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MELBOURNE, June 17 (Reuters) - Alcoa Corp AA.N detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy. But Australia could leverage its abundant renewable power, providing a strategic advantage for building out more green alumina production, Chatfield, Alcoa's global technical manager for refining energy, said. About 1,200 MW of new renewable power is required to fully implement the mechanical vapour recompression (MVR) process at Australia’s six alumina refineries, three run by Alcoa, two by Rio Tinto RIO.AX and one by South32 S32.AX, Chatfield said.
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MELBOURNE, June 17 (Reuters) - Alcoa Corp AA.N detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy. But Australia could leverage its abundant renewable power, providing a strategic advantage for building out more green alumina production, Chatfield, Alcoa's global technical manager for refining energy, said. This week, Rio Tinto said it would look to cut carbon from the calcination process, which contributes a further 24% of process emissions, by replacing natural gas with hydrogen.
|
MELBOURNE, June 17 (Reuters) - Alcoa Corp AA.N detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy. About 1,200 MW of new renewable power is required to fully implement the mechanical vapour recompression (MVR) process at Australia’s six alumina refineries, three run by Alcoa, two by Rio Tinto RIO.AX and one by South32 S32.AX, Chatfield said. This week, Rio Tinto said it would look to cut carbon from the calcination process, which contributes a further 24% of process emissions, by replacing natural gas with hydrogen.
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MELBOURNE, June 17 (Reuters) - Alcoa Corp AA.N detailed plans on Thursday for a "step change" in alumina production that would allow it to cut 70% of emissions from the carbon intensive process by tapping renewable energy. But Australia could leverage its abundant renewable power, providing a strategic advantage for building out more green alumina production, Chatfield, Alcoa's global technical manager for refining energy, said. Such compressors would be powered by renewable energy supplied from a power grid.
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1029.0
|
2021-06-15 00:00:00 UTC
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Noteworthy Tuesday Option Activity: SWBI, AA, HIG
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AA
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-swbi-aa-hig-2021-06-15
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Smith & Wesson Brands Inc (Symbol: SWBI), where a total of 7,105 contracts have traded so far, representing approximately 710,500 underlying shares. That amounts to about 58.5% of SWBI's average daily trading volume over the past month of 1.2 million shares. Especially high volume was seen for the $22.50 strike put option expiring July 16, 2021, with 1,986 contracts trading so far today, representing approximately 198,600 underlying shares of SWBI. Below is a chart showing SWBI's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
Alcoa Corporation (Symbol: AA) saw options trading volume of 34,580 contracts, representing approximately 3.5 million underlying shares or approximately 57.9% of AA's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $38.50 strike call option expiring July 02, 2021, with 3,721 contracts trading so far today, representing approximately 372,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $38.50 strike highlighted in orange:
And Hartford Financial Services Group Inc. (Symbol: HIG) options are showing a volume of 12,170 contracts thus far today. That number of contracts represents approximately 1.2 million underlying shares, working out to a sizeable 56.2% of HIG's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $65 strike call option expiring July 16, 2021, with 3,363 contracts trading so far today, representing approximately 336,300 underlying shares of HIG. Below is a chart showing HIG's trailing twelve month trading history, with the $65 strike highlighted in orange:
For the various different available expirations for SWBI options, AA options, or HIG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $38.50 strike call option expiring July 02, 2021, with 3,721 contracts trading so far today, representing approximately 372,100 underlying shares of AA. Below is a chart showing SWBI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 34,580 contracts, representing approximately 3.5 million underlying shares or approximately 57.9% of AA's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $38.50 strike highlighted in orange: And Hartford Financial Services Group Inc. (Symbol: HIG) options are showing a volume of 12,170 contracts thus far today.
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Below is a chart showing SWBI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 34,580 contracts, representing approximately 3.5 million underlying shares or approximately 57.9% of AA's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $38.50 strike call option expiring July 02, 2021, with 3,721 contracts trading so far today, representing approximately 372,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $38.50 strike highlighted in orange: And Hartford Financial Services Group Inc. (Symbol: HIG) options are showing a volume of 12,170 contracts thus far today.
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Below is a chart showing SWBI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 34,580 contracts, representing approximately 3.5 million underlying shares or approximately 57.9% of AA's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $38.50 strike call option expiring July 02, 2021, with 3,721 contracts trading so far today, representing approximately 372,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $38.50 strike highlighted in orange: And Hartford Financial Services Group Inc. (Symbol: HIG) options are showing a volume of 12,170 contracts thus far today.
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Below is a chart showing SWBI's trailing twelve month trading history, with the $22.50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 34,580 contracts, representing approximately 3.5 million underlying shares or approximately 57.9% of AA's average daily trading volume over the past month, of 6.0 million shares. Below is a chart showing HIG's trailing twelve month trading history, with the $65 strike highlighted in orange: For the various different available expirations for SWBI options, AA options, or HIG options, visit StockOptionsChannel.com. Especially high volume was seen for the $38.50 strike call option expiring July 02, 2021, with 3,721 contracts trading so far today, representing approximately 372,100 underlying shares of AA.
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1030.0
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2021-06-10 00:00:00 UTC
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July 30th Options Now Available For Alcoa (AA)
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AA
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https://www.nasdaq.com/articles/july-30th-options-now-available-for-alcoa-aa-2021-06-10
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
The put contract at the $37.00 strike price has a current bid of $1.23. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $37.00, but will also collect the premium, putting the cost basis of the shares at $35.77 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $37.47/share today.
Because the $37.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.32% return on the cash commitment, or 24.27% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $37.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $40.00 strike price has a current bid of $2.00. If an investor was to purchase shares of AA stock at the current price level of $37.47/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $40.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.09% if the stock gets called away at the July 30th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $40.00 strike highlighted in red:
Considering the fact that the $40.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.34% boost of extra return to the investor, or 38.96% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $37.47) to be 62%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 30th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
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1031.0
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2021-06-10 00:00:00 UTC
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Pre-Market Most Active for Jun 10, 2021 : CLOV, WISH, IVR, CLNE, AMC, MDLY, AHT, CLF, XIN, FCEL, SQQQ, AAL
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AA
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https://www.nasdaq.com/articles/pre-market-most-active-for-jun-10-2021-%3A-clov-wish-ivr-clne-amc-mdly-aht-clf-xin-fcel-sqqq
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -15.34 to 13,799.6. The total Pre-Market volume is currently 26,904,534 shares traded.
The following are the most active stocks for the pre-market session:
Clover Health Investments, Corp. (CLOV) is -0.78 at $16.14, with 6,475,843 shares traded. CLOV's current last sale is 107.59% of the target price of $15.001.
ContextLogic Inc. (WISH) is +0.43 at $11.03, with 3,714,371 shares traded. As reported by Zacks, the current mean recommendation for WISH is in the "buy range".
INVESCO MORTGAGE CAPITAL INC (IVR) is +0.38 at $4.54, with 3,177,399 shares traded. IVR's current last sale is 152.61% of the target price of $2.975.
Clean Energy Fuels Corp. (CLNE) is +0.18 at $13.20, with 2,960,916 shares traded. CLNE's current last sale is 114.78% of the target price of $11.5.
AMC Entertainment Holdings, Inc. (AMC) is -1.69 at $47.65, with 2,855,432 shares traded. AMC's current last sale is 1,191.25% of the target price of $4.
Medley Management Inc. (MDLY) is +6 at $11.84, with 2,803,380 shares traded.
Ashford Hospitality Trust Inc (AHT) is +0.31 at $6.98, with 1,814,197 shares traded. AHT's current last sale is 232.67% of the target price of $3.
Cleveland-Cliffs Inc. (CLF) is +1.3 at $24.52, with 1,800,697 shares traded., following a 52-week high recorded in prior regular session.
Xinyuan Real Estate Co Ltd (XIN) is +0.43 at $3.00, with 1,710,239 shares traded. XIN's current last sale is 43.48% of the target price of $6.9.
FuelCell Energy, Inc. (FCEL) is -1.45 at $9.82, with 1,515,300 shares traded. FCEL's current last sale is 98.2% of the target price of $10.
ProShares UltraPro Short QQQ (SQQQ) is +0.08 at $10.83, with 1,327,006 shares traded. This represents a 3.74% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.26 at $24.11, with 544,346 shares traded. AAL's current last sale is 150.69% of the target price of $16.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. (AAL) is +0.26 at $24.11, with 544,346 shares traded. AAL's current last sale is 150.69% of the target price of $16. Clover Health Investments, Corp. (CLOV) is -0.78 at $16.14, with 6,475,843 shares traded.
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American Airlines Group, Inc. (AAL) is +0.26 at $24.11, with 544,346 shares traded. AAL's current last sale is 150.69% of the target price of $16. CLOV's current last sale is 107.59% of the target price of $15.001.
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American Airlines Group, Inc. (AAL) is +0.26 at $24.11, with 544,346 shares traded. AAL's current last sale is 150.69% of the target price of $16. The total Pre-Market volume is currently 26,904,534 shares traded.
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American Airlines Group, Inc. (AAL) is +0.26 at $24.11, with 544,346 shares traded. AAL's current last sale is 150.69% of the target price of $16. AMC's current last sale is 1,191.25% of the target price of $4.
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1032.0
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2021-06-06 00:00:00 UTC
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The Executive VP & General Counsel of Alcoa Corporation (NYSE:AA), Jeffrey Heeter, Just Sold 87% Of Their Holding
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AA
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https://www.nasdaq.com/articles/the-executive-vp-general-counsel-of-alcoa-corporation-nyse%3Aaa-jeffrey-heeter-just-sold-87
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nan
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nan
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Some Alcoa Corporation (NYSE:AA) shareholders may be a little concerned to see that the Executive VP & General Counsel, Jeffrey Heeter, recently sold a substantial US$936k worth of stock at a price of US$40.53 per share. That diminished their holding by a very significant 87%, which arguably implies a strong desire to reallocate capital.
Alcoa Insider Transactions Over The Last Year
Notably, that recent sale by Jeffrey Heeter is the biggest insider sale of Alcoa shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$38.84. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Alcoa didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:AA Insider Trading Volume June 6th 2021
I will like Alcoa better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Alcoa
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Alcoa insiders own about US$29m worth of shares. That equates to 0.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Alcoa Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Alcoa that deserve your attention before buying any shares.
Of course Alcoa may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some Alcoa Corporation (NYSE:AA) shareholders may be a little concerned to see that the Executive VP & General Counsel, Jeffrey Heeter, recently sold a substantial US$936k worth of stock at a price of US$40.53 per share. NYSE:AA Insider Trading Volume June 6th 2021 I will like Alcoa better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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Some Alcoa Corporation (NYSE:AA) shareholders may be a little concerned to see that the Executive VP & General Counsel, Jeffrey Heeter, recently sold a substantial US$936k worth of stock at a price of US$40.53 per share. NYSE:AA Insider Trading Volume June 6th 2021 I will like Alcoa better if I see some big insider buys. Alcoa Insider Transactions Over The Last Year Notably, that recent sale by Jeffrey Heeter is the biggest insider sale of Alcoa shares that we've seen in the last year.
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NYSE:AA Insider Trading Volume June 6th 2021 I will like Alcoa better if I see some big insider buys. Some Alcoa Corporation (NYSE:AA) shareholders may be a little concerned to see that the Executive VP & General Counsel, Jeffrey Heeter, recently sold a substantial US$936k worth of stock at a price of US$40.53 per share. Alcoa Insider Transactions Over The Last Year Notably, that recent sale by Jeffrey Heeter is the biggest insider sale of Alcoa shares that we've seen in the last year.
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Some Alcoa Corporation (NYSE:AA) shareholders may be a little concerned to see that the Executive VP & General Counsel, Jeffrey Heeter, recently sold a substantial US$936k worth of stock at a price of US$40.53 per share. NYSE:AA Insider Trading Volume June 6th 2021 I will like Alcoa better if I see some big insider buys. So What Do The Alcoa Insider Transactions Indicate?
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1033.0
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2021-06-04 00:00:00 UTC
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XME, HL, STLD, AA: ETF Inflow Alert
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AA
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https://www.nasdaq.com/articles/xme-hl-stld-aa%3A-etf-inflow-alert-2021-06-04
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $139.4 million dollar inflow -- that's a 6.0% increase week over week in outstanding units (from 50,250,000 to 53,250,000). Among the largest underlying components of XME, in trading today Hecla Mining Co (Symbol: HL) is up about 2%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.4%, and Alcoa Corporation (Symbol: AA) is relatively unchanged. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average:
Looking at the chart above, XME's low point in its 52 week range is $20.03 per share, with $47.85 as the 52 week high point — that compares with a last trade of $46.55. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XME, in trading today Hecla Mining Co (Symbol: HL) is up about 2%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.4%, and Alcoa Corporation (Symbol: AA) is relatively unchanged. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $20.03 per share, with $47.85 as the 52 week high point — that compares with a last trade of $46.55. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XME, in trading today Hecla Mining Co (Symbol: HL) is up about 2%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.4%, and Alcoa Corporation (Symbol: AA) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $139.4 million dollar inflow -- that's a 6.0% increase week over week in outstanding units (from 50,250,000 to 53,250,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $20.03 per share, with $47.85 as the 52 week high point — that compares with a last trade of $46.55.
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Among the largest underlying components of XME, in trading today Hecla Mining Co (Symbol: HL) is up about 2%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.4%, and Alcoa Corporation (Symbol: AA) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $139.4 million dollar inflow -- that's a 6.0% increase week over week in outstanding units (from 50,250,000 to 53,250,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $20.03 per share, with $47.85 as the 52 week high point — that compares with a last trade of $46.55.
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Among the largest underlying components of XME, in trading today Hecla Mining Co (Symbol: HL) is up about 2%, Steel Dynamics Inc. (Symbol: STLD) is up about 0.4%, and Alcoa Corporation (Symbol: AA) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $139.4 million dollar inflow -- that's a 6.0% increase week over week in outstanding units (from 50,250,000 to 53,250,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $20.03 per share, with $47.85 as the 52 week high point — that compares with a last trade of $46.55.
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1034.0
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2021-06-01 00:00:00 UTC
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Some Japan buyers agree to pay 24-25% higher Q3 aluminium premium of $185/T
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AA
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https://www.nasdaq.com/articles/some-japan-buyers-agree-to-pay-24-25-higher-q3-aluminium-premium-of-%24185-t-2021-06-01-0
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nan
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nan
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By Yuka Obayashi
TOKYO, June 1 (Reuters) - Some Japanese aluminium buyers have agreed to pay a global producer a premium of $185 per tonne over the benchmark price for July-September shipments, up 24-25% from the current quarter, three sources involved in the pricing talks said.
The figure is higher than the $148-$149 per tonne paid in the April-June quarter and marks the fourth straight quarterly increase and the highest premiums since the April-June quarter in 2015.
Japan is Asia's biggest importer of the light metal and the premiums PREM-ALUM-JP for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region.
The deals were struck at an initial offer price of $185 a tonne offered last month by a global producer.
Another global producer has offered Japanese buyers premiums of $200 a tonne, according to the sources, who declined to be identified as they are not authorised to talk to the media.
"We have decided to take the $185 offer this week due to higher premiums in U.S. and European markets, backed by solid demand recovery from the COVID-19 pandemic crisis," a Japanese buyer source said.
Rising freight costs amid a tight container market was one of the factors behind the higher premiums, the source said.
Japanese buyers and global producers, including Rio Tinto Ltd RIO.AX and South32 Ltd S32.AX began price negotiations for the coming quarter last month, and the bargaining was expected to continue this month.
(Reporting by Yuka Obayashi; Editing by Himani Sarkar & Simon Cameron-Moore)
((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another global producer has offered Japanese buyers premiums of $200 a tonne, according to the sources, who declined to be identified as they are not authorised to talk to the media. "We have decided to take the $185 offer this week due to higher premiums in U.S. and European markets, backed by solid demand recovery from the COVID-19 pandemic crisis," a Japanese buyer source said. Rising freight costs amid a tight container market was one of the factors behind the higher premiums, the source said.
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By Yuka Obayashi TOKYO, June 1 (Reuters) - Some Japanese aluminium buyers have agreed to pay a global producer a premium of $185 per tonne over the benchmark price for July-September shipments, up 24-25% from the current quarter, three sources involved in the pricing talks said. Japan is Asia's biggest importer of the light metal and the premiums PREM-ALUM-JP for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. Another global producer has offered Japanese buyers premiums of $200 a tonne, according to the sources, who declined to be identified as they are not authorised to talk to the media.
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By Yuka Obayashi TOKYO, June 1 (Reuters) - Some Japanese aluminium buyers have agreed to pay a global producer a premium of $185 per tonne over the benchmark price for July-September shipments, up 24-25% from the current quarter, three sources involved in the pricing talks said. Japan is Asia's biggest importer of the light metal and the premiums PREM-ALUM-JP for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. Another global producer has offered Japanese buyers premiums of $200 a tonne, according to the sources, who declined to be identified as they are not authorised to talk to the media.
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By Yuka Obayashi TOKYO, June 1 (Reuters) - Some Japanese aluminium buyers have agreed to pay a global producer a premium of $185 per tonne over the benchmark price for July-September shipments, up 24-25% from the current quarter, three sources involved in the pricing talks said. The figure is higher than the $148-$149 per tonne paid in the April-June quarter and marks the fourth straight quarterly increase and the highest premiums since the April-June quarter in 2015. The deals were struck at an initial offer price of $185 a tonne offered last month by a global producer.
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1035.0
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2021-05-30 00:00:00 UTC
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Alcoa Corporation's (NYSE:AA) Intrinsic Value Is Potentially 94% Above Its Share Price
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AA
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https://www.nasdaq.com/articles/alcoa-corporations-nyse%3Aaa-intrinsic-value-is-potentially-94-above-its-share-price-2021-05
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nan
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nan
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alcoa Corporation (NYSE:AA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model.
What's the estimated valuation?
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) estimate
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) US$419.3m US$962.2m US$979.2m US$996.1m US$1.01b US$1.03b US$1.05b US$1.07b US$1.09b US$1.12b
Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Est @ 1.73% Est @ 1.81% Est @ 1.86% Est @ 1.9% Est @ 1.93% Est @ 1.95% Est @ 1.96%
Present Value ($, Millions) Discounted @ 8.3% US$387 US$820 US$771 US$724 US$681 US$641 US$603 US$567 US$534 US$503
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$6.2b
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.0%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$1.1b× (1 + 2.0%) ÷ (8.3%– 2.0%) = US$18b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$18b÷ ( 1 + 8.3%)10= US$8.1b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$14b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$39.7, the company appears quite good value at a 48% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.
NYSE:AA Discounted Cash Flow May 30th 2021
The assumptions
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Alcoa as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 1.335. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Looking Ahead:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Alcoa, there are three further factors you should consider:
Risks: Take risks, for example - Alcoa has 2 warning signs we think you should be aware of.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AA's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AA's future outlook? Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alcoa Corporation (NYSE:AA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NYSE:AA Discounted Cash Flow May 30th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alcoa Corporation (NYSE:AA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NYSE:AA Discounted Cash Flow May 30th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AA's future outlook?
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NYSE:AA Discounted Cash Flow May 30th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alcoa Corporation (NYSE:AA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AA's future outlook?
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Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Alcoa Corporation (NYSE:AA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. NYSE:AA Discounted Cash Flow May 30th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AA's future outlook?
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1036.0
|
2021-05-28 00:00:00 UTC
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AA Crosses Above Average Analyst Target
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AA
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https://www.nasdaq.com/articles/aa-crosses-above-average-analyst-target-2021-05-28
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nan
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nan
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $36.94, changing hands for $39.01/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 8 different analyst targets within the Zacks coverage universe contributing to that average for Alcoa Corporation, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $12.00. And then on the other side of the spectrum one analyst has a target as high as $56.00. The standard deviation is $15.933.
But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $36.94/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $36.94 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Alcoa Corporation:
RECENT AA ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 4 4 4 2
Buy ratings: 0 0 0 0
Hold ratings: 3 3 4 6
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.86 1.86 2.0 2.5
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AA — FREE.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $36.94, changing hands for $39.01/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $36.94/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $36.94 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $36.94, changing hands for $39.01/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $36.94/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $36.94 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AA crossing above that average target price of $36.94/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $36.94 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $36.94, changing hands for $39.01/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Alcoa Corporation (Symbol: AA) have crossed above the average analyst 12-month target price of $36.94, changing hands for $39.01/share. But the whole reason to look at the average AA price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AA crossing above that average target price of $36.94/share, investors in AA have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $36.94 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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1037.0
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2021-05-27 00:00:00 UTC
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Alcoa Stock Sheds 10% Of Its Value Within A Week – Here’s Why
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AA
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https://www.nasdaq.com/articles/alcoa-stock-sheds-10-of-its-value-within-a-week-heres-why-2021-05-27
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nan
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nan
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Alcoa stock (NYSE: AA) dropped more than 10% in just the last one week and currently trades at little less than $37. This drop was in line with an overall bearish sentiment for metals during the week. This was driven by two primary factors – China and the U.S. China stepped up its fight against soaring commodity prices with a warning of zero tolerance for monopoly and hoarding. China primary aluminum production reached a record high in April 2021, marking a rise of 2.3% m-o-m and 12.4% y-o-y. This was in line with rising demand and expectations of more stimulus measures, which led to a commodity price rally, before Chinese authorities intervened last week. Secondly, U.S. President Biden’s spending plan is apparently being scaled back from $2.25 trillion to $1.7 trillion after facing opposition from Republicans. Most of the cuts will include the most important parts for metals consumption, like broadband, roads, and bridges. These two important factors from the U.S. and China has led to a pull back in commodity prices. Accordingly, global aluminum prices fell 4% in the last one week, which led to Alcoa stock dropping more than 10%.
But will AA stock continue its downward trajectory over the coming weeks, or is a recovery in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for AA stock average close to 5% in the next one-month (21 trading days) period after experiencing a 10% decline over the previous one-week (five trading days) period. Notably, though, the stock is likely to outperform the S&P500 over the next one month, with an expected return which would be 3% higher compared to the S&P500.
But how would these numbers change if you are interested in holding AA stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning to test AA stock chances of a rise after a fall and vice versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF AA stock moved by -5% over five trading days, THEN over the next 21 trading days, AA stock moves an average of 2.4 percent, which implies a return which is 1% higher than that of the S&P500.
More importantly, there is 50% probability of a positive return over the next 21 trading days and 44% probability of a positive excess return after a -5% change over five trading days.
Some Fun Scenarios, FAQs & Making Sense of AA Stock Movements:
Question 1: Is the average return for Alcoa stock higher after a drop?
Answer:
Consider two situations,
Case 1: Alcoa stock drops by -5% or more in a week
Case 2: Alcoa stock rises by 5% or more in a week
Is the average return for Alcoa stock higher over the subsequent month after Case 1 or Case 2?
AA stock fares better after Case 2, with an average return of 2.4% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 3.6% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Alcoa stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Alcoa stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For AA stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is generally lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks – although AA stock appears to be an exception to this general observation.
AA’s returns over the next N days after a 5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Alcoa stock by changing the inputs in the charts above.
While AA stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa stock (NYSE: AA) dropped more than 10% in just the last one week and currently trades at little less than $37. But will AA stock continue its downward trajectory over the coming weeks, or is a recovery in the stock more likely? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for AA stock average close to 5% in the next one-month (21 trading days) period after experiencing a 10% decline over the previous one-week (five trading days) period.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for AA stock average close to 5% in the next one-month (21 trading days) period after experiencing a 10% decline over the previous one-week (five trading days) period. You can test the answer and many other combinations on the Trefis Machine Learning to test AA stock chances of a rise after a fall and vice versa. Some Fun Scenarios, FAQs & Making Sense of AA Stock Movements: Question 1: Is the average return for Alcoa stock higher after a drop?
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for AA stock average close to 5% in the next one-month (21 trading days) period after experiencing a 10% decline over the previous one-week (five trading days) period. AA stock fares better after Case 2, with an average return of 2.4% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 3.6% for Case 2. Alcoa stock (NYSE: AA) dropped more than 10% in just the last one week and currently trades at little less than $37.
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According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last ten years, returns for AA stock average close to 5% in the next one-month (21 trading days) period after experiencing a 10% decline over the previous one-week (five trading days) period. MACHINE LEARNING ENGINE – try it yourself: IF AA stock moved by -5% over five trading days, THEN over the next 21 trading days, AA stock moves an average of 2.4 percent, which implies a return which is 1% higher than that of the S&P500. Alcoa stock (NYSE: AA) dropped more than 10% in just the last one week and currently trades at little less than $37.
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1038.0
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2021-05-20 00:00:00 UTC
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One global aluminium producer seeks Q3 premiums of $185/T - sources
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AA
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https://www.nasdaq.com/articles/one-global-aluminium-producer-seeks-q3-premiums-of-%24185-t-sources-2021-05-20
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nan
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nan
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TOKYO, May 20 (Reuters) - A global aluminium producer has offered Japanese buyers premiums of $185 per tonne for July-September primary metal shipments, up 24-25% from the current quarter, two sources directly involved in quarterly pricing talks said on Thursday.
Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region.
For the April-June quarter, Japanese buyers agreed to pay a premium of $148-$149 per tonne PREM-ALUM-JP, up 14-15% from the prior quarter.
(Reporting by Yuka Obayashi; Editing by Jacqueline Wong)
((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TOKYO, May 20 (Reuters) - A global aluminium producer has offered Japanese buyers premiums of $185 per tonne for July-September primary metal shipments, up 24-25% from the current quarter, two sources directly involved in quarterly pricing talks said on Thursday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. (Reporting by Yuka Obayashi; Editing by Jacqueline Wong) ((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TOKYO, May 20 (Reuters) - A global aluminium producer has offered Japanese buyers premiums of $185 per tonne for July-September primary metal shipments, up 24-25% from the current quarter, two sources directly involved in quarterly pricing talks said on Thursday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. For the April-June quarter, Japanese buyers agreed to pay a premium of $148-$149 per tonne PREM-ALUM-JP, up 14-15% from the prior quarter.
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TOKYO, May 20 (Reuters) - A global aluminium producer has offered Japanese buyers premiums of $185 per tonne for July-September primary metal shipments, up 24-25% from the current quarter, two sources directly involved in quarterly pricing talks said on Thursday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. (Reporting by Yuka Obayashi; Editing by Jacqueline Wong) ((Yuka.Obayashi@thomsonreuters.com; +813-4563-2761;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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TOKYO, May 20 (Reuters) - A global aluminium producer has offered Japanese buyers premiums of $185 per tonne for July-September primary metal shipments, up 24-25% from the current quarter, two sources directly involved in quarterly pricing talks said on Thursday. Japan is Asia's biggest importer of the metal and the premiums for primary metal shipments it agrees to pay each quarter over the London Metal Exchange (LME) cash price CMAL0 set the benchmark for the region. For the April-June quarter, Japanese buyers agreed to pay a premium of $148-$149 per tonne PREM-ALUM-JP, up 14-15% from the prior quarter.
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1039.0
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2021-05-20 00:00:00 UTC
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Alcoa gets Australian grant for process to cut alumina emissions
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AA
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https://www.nasdaq.com/articles/alcoa-gets-australian-grant-for-process-to-cut-alumina-emissions-2021-05-20
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nan
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nan
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MELBOURNE, May 21 (Reuters) - Alcoa Corp AA.N is looking to develop a process to cut greenhouse gas emissions from the refining of alumina by up to 70%, with support from an Australian government agency grant, the two groups said on Friday.
Refining alumina, which is used to make aluminium, accounted for about 24% of Australia's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, the Australian Renewable Energy Agency (ARENA) said in a statement.
Australia is one of the world's largest exporters of alumina, which is refined from bauxite using high pressure steam.
The A$11.3 million ($8.8 million) grant will help Alcoa develop a process that would use renewable energy to power compressors to turn waste vapour into steam, a technology known as mechanical vapour recompression (MVR).
"MVR recompresses waste steam that would otherwise be exhausted to the atmosphere and recycles it in the refining process. This technology has the potential to improve efficiency, reduce costs and reduce emissions," ARENA said.
If feasibility studies are successful, Alcoa said in a statement it plans to install a three megawatt MVR module with renewable energy at the Alcoa of Australia Wagerup refinery in Western Australia to test the technology at scale by the end of 2023.
The total cost of the project is A$28.2 million. If successful, the process could help cut greenhouse gasses in alumina and also across the aluminium supply chain, said Eugenio Azevedo, Alcoa's Vice President for Continuous Improvement.
Alcoa of Australia is a joint venture owned 60% by Alcoa and 40% by Alumina Ltd. AWC.AX
($1 = 1.2893 Australian dollars)
(Reporting by Melanie Burton; editing by Richard Pullin)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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MELBOURNE, May 21 (Reuters) - Alcoa Corp AA.N is looking to develop a process to cut greenhouse gas emissions from the refining of alumina by up to 70%, with support from an Australian government agency grant, the two groups said on Friday. Refining alumina, which is used to make aluminium, accounted for about 24% of Australia's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, the Australian Renewable Energy Agency (ARENA) said in a statement. If successful, the process could help cut greenhouse gasses in alumina and also across the aluminium supply chain, said Eugenio Azevedo, Alcoa's Vice President for Continuous Improvement.
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MELBOURNE, May 21 (Reuters) - Alcoa Corp AA.N is looking to develop a process to cut greenhouse gas emissions from the refining of alumina by up to 70%, with support from an Australian government agency grant, the two groups said on Friday. Refining alumina, which is used to make aluminium, accounted for about 24% of Australia's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, the Australian Renewable Energy Agency (ARENA) said in a statement. The A$11.3 million ($8.8 million) grant will help Alcoa develop a process that would use renewable energy to power compressors to turn waste vapour into steam, a technology known as mechanical vapour recompression (MVR).
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MELBOURNE, May 21 (Reuters) - Alcoa Corp AA.N is looking to develop a process to cut greenhouse gas emissions from the refining of alumina by up to 70%, with support from an Australian government agency grant, the two groups said on Friday. The A$11.3 million ($8.8 million) grant will help Alcoa develop a process that would use renewable energy to power compressors to turn waste vapour into steam, a technology known as mechanical vapour recompression (MVR). If feasibility studies are successful, Alcoa said in a statement it plans to install a three megawatt MVR module with renewable energy at the Alcoa of Australia Wagerup refinery in Western Australia to test the technology at scale by the end of 2023.
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MELBOURNE, May 21 (Reuters) - Alcoa Corp AA.N is looking to develop a process to cut greenhouse gas emissions from the refining of alumina by up to 70%, with support from an Australian government agency grant, the two groups said on Friday. Refining alumina, which is used to make aluminium, accounted for about 24% of Australia's direct manufacturing emissions, or more than 14 million tonnes of carbon dioxide in 2019, the Australian Renewable Energy Agency (ARENA) said in a statement. The A$11.3 million ($8.8 million) grant will help Alcoa develop a process that would use renewable energy to power compressors to turn waste vapour into steam, a technology known as mechanical vapour recompression (MVR).
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1040.0
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2021-05-13 00:00:00 UTC
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Noteworthy ETF Inflows: IWN, DAR, CLF, AA
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AA
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https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-iwn-dar-clf-aa-2021-05-13
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 Value ETF (Symbol: IWN) where we have detected an approximate $150.0 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 101,550,000 to 102,500,000). Among the largest underlying components of IWN, in trading today Darling Ingredients Inc (Symbol: DAR) is up about 1%, Cleveland-Cliffs Inc (Symbol: CLF) is up about 3.1%, and Alcoa Corporation (Symbol: AA) is higher by about 2.1%. For a complete list of holdings, visit the IWN Holdings page » The chart below shows the one year price performance of IWN, versus its 200 day moving average:
Looking at the chart above, IWN's low point in its 52 week range is $78.13 per share, with $170.25 as the 52 week high point — that compares with a last trade of $161.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of IWN, in trading today Darling Ingredients Inc (Symbol: DAR) is up about 1%, Cleveland-Cliffs Inc (Symbol: CLF) is up about 3.1%, and Alcoa Corporation (Symbol: AA) is higher by about 2.1%. For a complete list of holdings, visit the IWN Holdings page » The chart below shows the one year price performance of IWN, versus its 200 day moving average: Looking at the chart above, IWN's low point in its 52 week range is $78.13 per share, with $170.25 as the 52 week high point — that compares with a last trade of $161.70. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of IWN, in trading today Darling Ingredients Inc (Symbol: DAR) is up about 1%, Cleveland-Cliffs Inc (Symbol: CLF) is up about 3.1%, and Alcoa Corporation (Symbol: AA) is higher by about 2.1%. For a complete list of holdings, visit the IWN Holdings page » The chart below shows the one year price performance of IWN, versus its 200 day moving average: Looking at the chart above, IWN's low point in its 52 week range is $78.13 per share, with $170.25 as the 52 week high point — that compares with a last trade of $161.70. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of IWN, in trading today Darling Ingredients Inc (Symbol: DAR) is up about 1%, Cleveland-Cliffs Inc (Symbol: CLF) is up about 3.1%, and Alcoa Corporation (Symbol: AA) is higher by about 2.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 Value ETF (Symbol: IWN) where we have detected an approximate $150.0 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 101,550,000 to 102,500,000). For a complete list of holdings, visit the IWN Holdings page » The chart below shows the one year price performance of IWN, versus its 200 day moving average: Looking at the chart above, IWN's low point in its 52 week range is $78.13 per share, with $170.25 as the 52 week high point — that compares with a last trade of $161.70.
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Among the largest underlying components of IWN, in trading today Darling Ingredients Inc (Symbol: DAR) is up about 1%, Cleveland-Cliffs Inc (Symbol: CLF) is up about 3.1%, and Alcoa Corporation (Symbol: AA) is higher by about 2.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 2000 Value ETF (Symbol: IWN) where we have detected an approximate $150.0 million dollar inflow -- that's a 0.9% increase week over week in outstanding units (from 101,550,000 to 102,500,000). For a complete list of holdings, visit the IWN Holdings page » The chart below shows the one year price performance of IWN, versus its 200 day moving average: Looking at the chart above, IWN's low point in its 52 week range is $78.13 per share, with $170.25 as the 52 week high point — that compares with a last trade of $161.70.
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1041.0
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2021-05-12 00:00:00 UTC
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Why C3.ai Stock Does Not Compute
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AA
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https://www.nasdaq.com/articles/why-c3.ai-stock-does-not-compute-2021-05-12
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
C3.ai (NYSE:AI) is, in some ways, one of the next big things to have already arrived. But right now, and in a less-than-impressed market, investors can purchase a disconnected AI stock at a much more reasonable price than otherwise.
Source: Shutterstock
Let’s take a look at what’s happening off and on the price chart, as well as a risk-adjusted determination aligned with those findings.
It’s been a durable bull in 2021 for the broader market and one led by more cyclically driven blue-chips. For Alcoa (NYSE:AA) to Caterpillar (NYSE:CAT), FedEx (NYSE:FDX) and others, life has been good for many companies and their shareholders. But the record-setting rally has come at the expense of an equally large pool of diverse, higher multiple growth stories amid a vicious bear market.
Advanced Micro Devices (NASDAQ:AMD). Snowflake (NYSE:SNOW). Teladoc (NYSE:TDOC). Churchill Capital (NYSE:CCIV). The list of casualties in 2021 goes on and on with no shortage of reasons for the selling pressure. From interest rate and inflation fears, chip shortages or what lays ahead for companies on the other side of the novel coronavirus, Wall Street is convinced it has a handle on things. And that includes AI stock.
But Wall Street has, on occasion, been known to be wildly wrong.
About AI Stock
C3.ai is the market’s only pure play on artificial intelligence. Helmed by former Oracle (NASDAQ:ORCL) brass and Siebel founder Tom Siebel, AI’s technology offers companies the ability to use AI models at scale and enable more powerful enterprise outcomes without the hefty capital investment outlay.
7 Stocks to Start Your Robinhood Portfolio With Just $2,000
For its service, C3.ai enjoys what’s proven a stable and growing revenue stream. And if you’re up for a bit more table pounding of AI’s business wherewithal, InvestorPlace’s Luke Lango has gone so far as to call AI one the “most compelling growth companies in the world today.” And that was back in late March with shares nearly 30% higher!
The Roller Coaster
It’s been a wild ride in just over five months as a public company. AI stock’s early December IPO priced at $42 and well-above initial range estimates of $30 to $34. To say the least, the road show was successful. C3.ai also managed to attract Microsoft (NASDAQ:MSFT) and Koch Industries among its institutional investors in $50 million and $100 million private placements. And AI proved an even greater hit in the secondary market.
With the reverberation of the NYSE’s opening bell in the background, on Dec. 9 AI stock opened to much fanfare at $100. And in less than three weeks shares soared by another 84% to a high of $183.90 immediately in front of Christmas holiday. But AI’s roughly $20 billion valuation and dearly held status wasn’t a gift that would keep on giving.
Following a swift correction into early January, a month-long rally peaked in February at $176.94. And today, Wall Street’s broader rotation out of higher multiple growth stocks is offering a baby with the bathwater opportunity in AI shares. Tuesday’s most recent all-time-low of $50 puts the stock just $8 or 16% above its initial public offering price of $43 and nearly 73% off December’s all-time-high.
A Frightening Stock Chart
Source: Charts by TradingView
Cheaper of course, isn’t the same as being offered something that’s become more valuable. But if we allow ourselves to take a bullish cue from successful first movers Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) or Tesla (NASDAQ:TSLA), and where buying on weakness against the consensus has provided windfalls for investors over the years, today’s buyers should be well-positioned for an improved and different reality in the future for AI stock.
Technically speaking, AI’s price chart is as frightening as they come. Tuesday’s new low follow’s last week’s latest technical failure as shares broke beneath channel support. Again though, Wall Street is far from perfect. And given where AI is today, I’m confident we’re closer to the end being near in a good sort of way, than not in C3.ai.
Bottom line though, and always, a fully-hedged July $55/$70 collar is one well-priced strategy for what needs to happen on the price chart to begin turning a profit, while largely avoiding more disastrous possibilities.
On the date of publication, Chris Tyler holds, directly or indirectly, positions in C3.ai (AI) and its derivates, but no other securities mentioned in this article.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
The post Why C3.ai Stock Does Not Compute appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Alcoa (NYSE:AA) to Caterpillar (NYSE:CAT), FedEx (NYSE:FDX) and others, life has been good for many companies and their shareholders. From interest rate and inflation fears, chip shortages or what lays ahead for companies on the other side of the novel coronavirus, Wall Street is convinced it has a handle on things. And today, Wall Street’s broader rotation out of higher multiple growth stocks is offering a baby with the bathwater opportunity in AI shares.
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For Alcoa (NYSE:AA) to Caterpillar (NYSE:CAT), FedEx (NYSE:FDX) and others, life has been good for many companies and their shareholders. InvestorPlace - Stock Market News, Stock Advice & Trading Tips C3.ai (NYSE:AI) is, in some ways, one of the next big things to have already arrived. And today, Wall Street’s broader rotation out of higher multiple growth stocks is offering a baby with the bathwater opportunity in AI shares.
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For Alcoa (NYSE:AA) to Caterpillar (NYSE:CAT), FedEx (NYSE:FDX) and others, life has been good for many companies and their shareholders. InvestorPlace - Stock Market News, Stock Advice & Trading Tips C3.ai (NYSE:AI) is, in some ways, one of the next big things to have already arrived. And today, Wall Street’s broader rotation out of higher multiple growth stocks is offering a baby with the bathwater opportunity in AI shares.
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For Alcoa (NYSE:AA) to Caterpillar (NYSE:CAT), FedEx (NYSE:FDX) and others, life has been good for many companies and their shareholders. But right now, and in a less-than-impressed market, investors can purchase a disconnected AI stock at a much more reasonable price than otherwise. But Wall Street has, on occasion, been known to be wildly wrong.
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1042.0
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2021-05-10 00:00:00 UTC
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Noteworthy Monday Option Activity: AA, FRO, JBHT
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AA
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-aa-fro-jbht-2021-05-10
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 40,333 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 59.6% of AA's average daily trading volume over the past month of 6.8 million shares. Particularly high volume was seen for the $40 strike call option expiring January 21, 2022, with 5,121 contracts trading so far today, representing approximately 512,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $40 strike highlighted in orange:
Frontline Ltd (Symbol: FRO) saw options trading volume of 9,939 contracts, representing approximately 993,900 underlying shares or approximately 58.7% of FRO's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $7 strike put option expiring January 21, 2022, with 4,800 contracts trading so far today, representing approximately 480,000 underlying shares of FRO. Below is a chart showing FRO's trailing twelve month trading history, with the $7 strike highlighted in orange:
And J.B. Hunt Transport Services, Inc. (Symbol: JBHT) saw options trading volume of 3,939 contracts, representing approximately 393,900 underlying shares or approximately 58.5% of JBHT's average daily trading volume over the past month, of 673,365 shares. Especially high volume was seen for the $170 strike put option expiring May 21, 2021, with 941 contracts trading so far today, representing approximately 94,100 underlying shares of JBHT. Below is a chart showing JBHT's trailing twelve month trading history, with the $170 strike highlighted in orange:
For the various different available expirations for AA options, FRO options, or JBHT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $40 strike call option expiring January 21, 2022, with 5,121 contracts trading so far today, representing approximately 512,100 underlying shares of AA. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 40,333 contracts have traded so far, representing approximately 4.0 million underlying shares. That amounts to about 59.6% of AA's average daily trading volume over the past month of 6.8 million shares.
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Particularly high volume was seen for the $40 strike call option expiring January 21, 2022, with 5,121 contracts trading so far today, representing approximately 512,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $40 strike highlighted in orange: Frontline Ltd (Symbol: FRO) saw options trading volume of 9,939 contracts, representing approximately 993,900 underlying shares or approximately 58.7% of FRO's average daily trading volume over the past month, of 1.7 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 40,333 contracts have traded so far, representing approximately 4.0 million underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 40,333 contracts have traded so far, representing approximately 4.0 million underlying shares. Below is a chart showing AA's trailing twelve month trading history, with the $40 strike highlighted in orange: Frontline Ltd (Symbol: FRO) saw options trading volume of 9,939 contracts, representing approximately 993,900 underlying shares or approximately 58.7% of FRO's average daily trading volume over the past month, of 1.7 million shares. That amounts to about 59.6% of AA's average daily trading volume over the past month of 6.8 million shares.
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Particularly high volume was seen for the $40 strike call option expiring January 21, 2022, with 5,121 contracts trading so far today, representing approximately 512,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $40 strike highlighted in orange: Frontline Ltd (Symbol: FRO) saw options trading volume of 9,939 contracts, representing approximately 993,900 underlying shares or approximately 58.7% of FRO's average daily trading volume over the past month, of 1.7 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Alcoa Corporation (Symbol: AA), where a total of 40,333 contracts have traded so far, representing approximately 4.0 million underlying shares.
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1043.0
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2021-05-10 00:00:00 UTC
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US STOCKS-Dow reaches all-time high on commodity surge; S&P, Nasdaq drop
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AA
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https://www.nasdaq.com/articles/us-stocks-dow-reaches-all-time-high-on-commodity-surge-sp-nasdaq-drop-2021-05-10
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nan
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nan
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By Stephen Culp
NEW YORK, May 10 (Reuters) - Wall Street was mixed on Monday, with economically sensitive cyclical shares advancing as investors shifted their bets in favor of stocks that stand to benefit most as the economy reopens and the consumer, flush with stimulus and savings, brings demand roaring back to life.
Tech shares reversed Friday's gains, pulling the S&P 500 and the Nasdaq into negative territory, while industrial and healthcare shares set the blue-chip Dow on course for its fourth consecutive all-time closing high.
"You continue to see this rotation between tech-plus and cyclicals, and certainly the spike in inflation of input costs benefits cyclicals in terms of pricing," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
Booming demand is colliding with tight supply in basic materials, helping stoke fears of inflation.
Copper and aluminum touched record highs, boosting shares of Alcoa AA.N and United States Steel X.N by 2.6% and 4.7%, respectively. MET/L
The S&P Materials index .SPLRCM reached an all-time high.
The break-even rate on five-year and 10-year U.S. Treasury Inflation-Protected Securities (TIPS) touched their highest levels since 2011 and 2013, respectively.
"The Fed has talked a lot about a temporary spike in inflation, that it will be temporary," Ghriskey added. "But the financial markets are clearly concerned about it."
Those concerns will be in the minds of investors when the Labor Department releases its latest CPI report on Wednesday.
A shutdown to halt a ransomware attack on the Colonial Pipeline entered its fourth day, hobbling a network which transports nearly half of the East Coast's fuel supplies.
Energy shares .SPNY were last up 1.5%.
The Dow Jones Industrial Average .DJI rose 229.72 points, or 0.66%, to 35,007.48, the S&P 500 .SPX lost 11.09 points, or 0.26%, to 4,221.51 and the Nasdaq Composite .IXIC dropped 251.02 points, or 1.83%, to 13,501.21.
Of the 11 major sectors in the S&P 500, eight were green, with utilities .SPLRCU leading the charge. Tech was the biggest loser, down 1.8%.
First-quarter reporting season has entered the home stretch, with 439 of the companies in the S&P 500 having reported as of Friday. Of those, 87% have beaten consensus expectations, according to Refinitiv IBES.
Analysts now see year-on-year S&P earnings growth of 50.4% on aggregate, more than double the rate forecast at the beginning of April and significantly better than the 16% first-quarter growth expected on January 1, per Refinitiv
Hotel operator Marriott International Inc MAR.O missed quarterly profit and revenue expectations due to weak U.S. bookings which offset a rebound in China. Its shares fell 3.4%.
Its rival Wynn Resorts Ltd WYNN.O is expected to report after the bell.
Electric vehicle stocks put on the brakes, with Tesla Inc TSLA.O down 5.6% and Fisker off 9.0% after Workhorse Group WKHS.O missed quarterly revenue expectations.
FireEye FEYE.O rose 1.9% after industry sources identified the cybersecurity firm as among those helping Colonial Pipeline recover from the recent cyberattack.
Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored decliners.
The S&P 500 posted 221 new 52-week highs and no new lows; the Nasdaq Composite recorded 203 new highs and 122 new lows.
(Reporting by Stephen Culp; Additional reporting by Medha Singh and Sruthi Shankar in Bangalore; Editing by Lisa Shumaker)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Copper and aluminum touched record highs, boosting shares of Alcoa AA.N and United States Steel X.N by 2.6% and 4.7%, respectively. By Stephen Culp NEW YORK, May 10 (Reuters) - Wall Street was mixed on Monday, with economically sensitive cyclical shares advancing as investors shifted their bets in favor of stocks that stand to benefit most as the economy reopens and the consumer, flush with stimulus and savings, brings demand roaring back to life. A shutdown to halt a ransomware attack on the Colonial Pipeline entered its fourth day, hobbling a network which transports nearly half of the East Coast's fuel supplies.
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Copper and aluminum touched record highs, boosting shares of Alcoa AA.N and United States Steel X.N by 2.6% and 4.7%, respectively. Electric vehicle stocks put on the brakes, with Tesla Inc TSLA.O down 5.6% and Fisker off 9.0% after Workhorse Group WKHS.O missed quarterly revenue expectations. Advancing issues outnumbered declining ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored decliners.
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Copper and aluminum touched record highs, boosting shares of Alcoa AA.N and United States Steel X.N by 2.6% and 4.7%, respectively. By Stephen Culp NEW YORK, May 10 (Reuters) - Wall Street was mixed on Monday, with economically sensitive cyclical shares advancing as investors shifted their bets in favor of stocks that stand to benefit most as the economy reopens and the consumer, flush with stimulus and savings, brings demand roaring back to life. Tech shares reversed Friday's gains, pulling the S&P 500 and the Nasdaq into negative territory, while industrial and healthcare shares set the blue-chip Dow on course for its fourth consecutive all-time closing high.
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Copper and aluminum touched record highs, boosting shares of Alcoa AA.N and United States Steel X.N by 2.6% and 4.7%, respectively. Tech shares reversed Friday's gains, pulling the S&P 500 and the Nasdaq into negative territory, while industrial and healthcare shares set the blue-chip Dow on course for its fourth consecutive all-time closing high. "You continue to see this rotation between tech-plus and cyclicals, and certainly the spike in inflation of input costs benefits cyclicals in terms of pricing," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
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1044.0
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2021-05-10 00:00:00 UTC
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US STOCKS-S&P 500, Dow eye record open; materials, energy stocks rise
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AA
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https://www.nasdaq.com/articles/us-stocks-sp-500-dow-eye-record-open-materials-energy-stocks-rise-2021-05-10
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nan
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nan
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By Medha Singh and Sruthi Shankar
May 10 (Reuters) - The S&P 500 and the Dow were set to open at record highs on Monday as optimism that interest rates would remain lower for longer lingered, while a surge in commodity prices lifted shares of miners, energy and steel companies.
Copper miner Freeport-McMoran FCX.N rose 3.4% in premarket trading, while aluminum producer Alcoa AA.N gained 3.4% and steelmaker United States Steel Corp X.N was up 2.4% as copper prices touched a record high and aluminum scaled a new peak. MET/L
Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 1% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices. O/R
Cybersecurity firm FireEye FEYE.O jumped about 5% as industry sources said the company was among those helping Colonial Pipeline to recover from one of the most disruptive digital ransom schemes reported.
"A lot of the inflation fears are overdone," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"There is a big difference between commodity price and inflation at the consumer level. It generally takes a gigantic increase in prices of raw materials to even have a tiny effect on consumer price index."
The S&P 500 and the Dow ended at record closing highs on Friday as an unexpected slowdown in monthly jobs growth fueled bets that the U.S. Federal Reserve would remain accommodative for longer.
With latest economic reports depicting that the U.S. economy is not recovering at the explosive pace as previously forecast, inflation numbers and retail sales data this week could chart the next course for U.S. equities.
"Markets are certainly priced to perfection here. We're likely to see some back and forth," Brown added.
At 8:36 a.m. ET, Dow e-minis 1YMcv1 were up 123 points, or 0.35% and S&P 500 e-minis EScv1 were up 5.5 points, or 0.13%.
Nasdaq 100 e-minis NQcv1 were down 38.25 points, or 0.28% as megacap technology-related stocks resumed their slide from last week. Facebook Inc FB.O, Tesla Inc TSLA.Oand Alphabet Inc GOOGL.O shed between 0.7% and 1.2%.
Tyson Foods Inc TSN.N gained 0.7% beat second-quarter revenue estimates as the U.S. meat processor benefited from strong demand for its chicken products from reopened restaurants and hotels across the country.
The earnings season is in its final stretch with about 87.2% of 439 S&P 500 companies beating estimates for profit, according to Refinitiv data. Analysts expect overall first-quarter earnings to jump 50.4% from a year ago, their strongest growth rate since 2010.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Copper miner Freeport-McMoran FCX.N rose 3.4% in premarket trading, while aluminum producer Alcoa AA.N gained 3.4% and steelmaker United States Steel Corp X.N was up 2.4% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh and Sruthi Shankar May 10 (Reuters) - The S&P 500 and the Dow were set to open at record highs on Monday as optimism that interest rates would remain lower for longer lingered, while a surge in commodity prices lifted shares of miners, energy and steel companies. The S&P 500 and the Dow ended at record closing highs on Friday as an unexpected slowdown in monthly jobs growth fueled bets that the U.S. Federal Reserve would remain accommodative for longer.
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Copper miner Freeport-McMoran FCX.N rose 3.4% in premarket trading, while aluminum producer Alcoa AA.N gained 3.4% and steelmaker United States Steel Corp X.N was up 2.4% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh and Sruthi Shankar May 10 (Reuters) - The S&P 500 and the Dow were set to open at record highs on Monday as optimism that interest rates would remain lower for longer lingered, while a surge in commodity prices lifted shares of miners, energy and steel companies. (Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Maju Samuel) ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Copper miner Freeport-McMoran FCX.N rose 3.4% in premarket trading, while aluminum producer Alcoa AA.N gained 3.4% and steelmaker United States Steel Corp X.N was up 2.4% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh and Sruthi Shankar May 10 (Reuters) - The S&P 500 and the Dow were set to open at record highs on Monday as optimism that interest rates would remain lower for longer lingered, while a surge in commodity prices lifted shares of miners, energy and steel companies. MET/L Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 1% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices.
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Copper miner Freeport-McMoran FCX.N rose 3.4% in premarket trading, while aluminum producer Alcoa AA.N gained 3.4% and steelmaker United States Steel Corp X.N was up 2.4% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh and Sruthi Shankar May 10 (Reuters) - The S&P 500 and the Dow were set to open at record highs on Monday as optimism that interest rates would remain lower for longer lingered, while a surge in commodity prices lifted shares of miners, energy and steel companies. MET/L Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 1% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices.
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1045.0
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2021-05-10 00:00:00 UTC
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US STOCKS-S&P futures hover at record levels; materials, energy stocks rise
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AA
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https://www.nasdaq.com/articles/us-stocks-sp-futures-hover-at-record-levels-materials-energy-stocks-rise-2021-05-10
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nan
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nan
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By Medha Singh
May 10 (Reuters) - The S&P 500 futures hovered near record highs on Monday as investors awaited economic data this week for more clarity on the pace of economic recovery, while higher commodity prices supported shares of miners, energy and steel companies.
Copper miner Freeport-McMoran FCX.N rose 3.5% premarket, while aluminum producer Alcoa AA.N gained 3.6% and steelmaker United States Steel Corp X.N was up 3.1% as copper prices touched a record high and aluminum scaled a new peak. MET/L
Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 0.8% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices. O/R
Cybersecurity firm FireEye FEYE.O jumped about 6% as industry sources said the company was among those helping Colonial Pipeline to recover from one of the most disruptive digital ransom schemes reported.
The S&P 500 and the Dow ended at record closing highs on Friday as an unexpected slowdown in monthly jobs growth eased inflation worries and fueled bets that the U.S. Federal Reserve would remain accommodative for longer.
With latest economic reports depicting that the U.S. economy is not recovering at the explosive pace as previously forecast, inflation numbers this week and comments from Federal Reserve officials could chart the next course for U.S. equities.
At 6:46 a.m. ET, Dow e-minis 1YMcv1 were up 106 points, or 0.31%, S&P 500 e-minis EScv1 were up 3.25 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 35.5 points, or 0.26%.
The earnings season is in its final stretch with about 87.2% of 439 S&P 500 companies beating estimates for profit, according to Refinitiv data. Analysts expect overall first-quarter earnings to jump 50.4% from a year ago, their strongest growth rate since 2010.
(Reporting by Medha Singh in Bengaluru; Editing by Maju Samuel)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Copper miner Freeport-McMoran FCX.N rose 3.5% premarket, while aluminum producer Alcoa AA.N gained 3.6% and steelmaker United States Steel Corp X.N was up 3.1% as copper prices touched a record high and aluminum scaled a new peak. O/R Cybersecurity firm FireEye FEYE.O jumped about 6% as industry sources said the company was among those helping Colonial Pipeline to recover from one of the most disruptive digital ransom schemes reported. The S&P 500 and the Dow ended at record closing highs on Friday as an unexpected slowdown in monthly jobs growth eased inflation worries and fueled bets that the U.S. Federal Reserve would remain accommodative for longer.
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Copper miner Freeport-McMoran FCX.N rose 3.5% premarket, while aluminum producer Alcoa AA.N gained 3.6% and steelmaker United States Steel Corp X.N was up 3.1% as copper prices touched a record high and aluminum scaled a new peak. MET/L Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 0.8% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices. ET, Dow e-minis 1YMcv1 were up 106 points, or 0.31%, S&P 500 e-minis EScv1 were up 3.25 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 35.5 points, or 0.26%.
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Copper miner Freeport-McMoran FCX.N rose 3.5% premarket, while aluminum producer Alcoa AA.N gained 3.6% and steelmaker United States Steel Corp X.N was up 3.1% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh May 10 (Reuters) - The S&P 500 futures hovered near record highs on Monday as investors awaited economic data this week for more clarity on the pace of economic recovery, while higher commodity prices supported shares of miners, energy and steel companies. MET/L Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 0.8% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices.
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Copper miner Freeport-McMoran FCX.N rose 3.5% premarket, while aluminum producer Alcoa AA.N gained 3.6% and steelmaker United States Steel Corp X.N was up 3.1% as copper prices touched a record high and aluminum scaled a new peak. By Medha Singh May 10 (Reuters) - The S&P 500 futures hovered near record highs on Monday as investors awaited economic data this week for more clarity on the pace of economic recovery, while higher commodity prices supported shares of miners, energy and steel companies. MET/L Chevron Corp CVX.N, Occidental Petroleum Corp OXY.N and Exxon Mobil Corp XOM.N firmed about 0.8% after a cyber attack on top U.S. pipeline operator Colonial Pipeline shuttered fuel network that transports nearly half of the East Coast's supplies, lifting oil prices.
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1046.0
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2021-04-30 00:00:00 UTC
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Notable ETF Inflow Detected - XME, AA, ATI, CLF
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AA
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https://www.nasdaq.com/articles/notable-etf-inflow-detected-xme-aa-ati-clf-2021-04-30
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $107.0 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 42,050,000 to 44,650,000). Among the largest underlying components of XME, in trading today Alcoa Corporation (Symbol: AA) is up about 1.9%, Allegheny Technologies, Inc (Symbol: ATI) is up about 0.6%, and Cleveland-Cliffs Inc (Symbol: CLF) is higher by about 5.4%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average:
Looking at the chart above, XME's low point in its 52 week range is $17.50 per share, with $42.46 as the 52 week high point — that compares with a last trade of $41.39. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of XME, in trading today Alcoa Corporation (Symbol: AA) is up about 1.9%, Allegheny Technologies, Inc (Symbol: ATI) is up about 0.6%, and Cleveland-Cliffs Inc (Symbol: CLF) is higher by about 5.4%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $17.50 per share, with $42.46 as the 52 week high point — that compares with a last trade of $41.39. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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Among the largest underlying components of XME, in trading today Alcoa Corporation (Symbol: AA) is up about 1.9%, Allegheny Technologies, Inc (Symbol: ATI) is up about 0.6%, and Cleveland-Cliffs Inc (Symbol: CLF) is higher by about 5.4%. For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $17.50 per share, with $42.46 as the 52 week high point — that compares with a last trade of $41.39. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Among the largest underlying components of XME, in trading today Alcoa Corporation (Symbol: AA) is up about 1.9%, Allegheny Technologies, Inc (Symbol: ATI) is up about 0.6%, and Cleveland-Cliffs Inc (Symbol: CLF) is higher by about 5.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $107.0 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 42,050,000 to 44,650,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $17.50 per share, with $42.46 as the 52 week high point — that compares with a last trade of $41.39.
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Among the largest underlying components of XME, in trading today Alcoa Corporation (Symbol: AA) is up about 1.9%, Allegheny Technologies, Inc (Symbol: ATI) is up about 0.6%, and Cleveland-Cliffs Inc (Symbol: CLF) is higher by about 5.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the SPDR— S&P— Metals & Mining ETF (Symbol: XME) where we have detected an approximate $107.0 million dollar inflow -- that's a 6.2% increase week over week in outstanding units (from 42,050,000 to 44,650,000). For a complete list of holdings, visit the XME Holdings page » The chart below shows the one year price performance of XME, versus its 200 day moving average: Looking at the chart above, XME's low point in its 52 week range is $17.50 per share, with $42.46 as the 52 week high point — that compares with a last trade of $41.39.
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1047.0
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2021-04-30 00:00:00 UTC
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Should Shareholders Reconsider Alcoa Corporation's (NYSE:AA) CEO Compensation Package?
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AA
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https://www.nasdaq.com/articles/should-shareholders-reconsider-alcoa-corporations-nyse%3Aaa-ceo-compensation-package-2021-04
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nan
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nan
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Alcoa Corporation (NYSE:AA) has not performed well recently and CEO Roy Harvey will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 06 May 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Comparing Alcoa Corporation's CEO Compensation With the industry
Our data indicates that Alcoa Corporation has a market capitalization of US$6.8b, and total annual CEO compensation was reported as US$13m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$12m. So it looks like Alcoa compensates Roy Harvey in line with the median for the industry. Furthermore, Roy Harvey directly owns US$3.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component 2020 2019 Proportion (2020)
Salary US$1.1m US$1.0m 8%
Other US$12m US$12m 92%
Total Compensation US$13m US$13m 100%
Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. It's interesting to note that Alcoa allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
NYSE:AA CEO Compensation April 30th 2021
A Look at Alcoa Corporation's Growth Numbers
Over the last three years, Alcoa Corporation has shrunk its earnings per share by 51% per year. Its revenue is down 3.2% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Alcoa Corporation Been A Good Investment?
With a total shareholder return of -30% over three years, Alcoa Corporation shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Alcoa that investors should think about before committing capital to this stock.
Important note: Alcoa is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Corporation (NYSE:AA) has not performed well recently and CEO Roy Harvey will probably need to up their game. NYSE:AA CEO Compensation April 30th 2021 A Look at Alcoa Corporation's Growth Numbers Over the last three years, Alcoa Corporation has shrunk its earnings per share by 51% per year. On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$12m.
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Alcoa Corporation (NYSE:AA) has not performed well recently and CEO Roy Harvey will probably need to up their game. NYSE:AA CEO Compensation April 30th 2021 A Look at Alcoa Corporation's Growth Numbers Over the last three years, Alcoa Corporation has shrunk its earnings per share by 51% per year. Comparing Alcoa Corporation's CEO Compensation With the industry Our data indicates that Alcoa Corporation has a market capitalization of US$6.8b, and total annual CEO compensation was reported as US$13m for the year to December 2020.
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NYSE:AA CEO Compensation April 30th 2021 A Look at Alcoa Corporation's Growth Numbers Over the last three years, Alcoa Corporation has shrunk its earnings per share by 51% per year. Alcoa Corporation (NYSE:AA) has not performed well recently and CEO Roy Harvey will probably need to up their game. Comparing Alcoa Corporation's CEO Compensation With the industry Our data indicates that Alcoa Corporation has a market capitalization of US$6.8b, and total annual CEO compensation was reported as US$13m for the year to December 2020.
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Alcoa Corporation (NYSE:AA) has not performed well recently and CEO Roy Harvey will probably need to up their game. NYSE:AA CEO Compensation April 30th 2021 A Look at Alcoa Corporation's Growth Numbers Over the last three years, Alcoa Corporation has shrunk its earnings per share by 51% per year. Comparing Alcoa Corporation's CEO Compensation With the industry Our data indicates that Alcoa Corporation has a market capitalization of US$6.8b, and total annual CEO compensation was reported as US$13m for the year to December 2020.
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1048.0
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2021-04-29 00:00:00 UTC
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June 11th Options Now Available For Alcoa (AA)
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AA
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https://www.nasdaq.com/articles/june-11th-options-now-available-for-alcoa-aa-2021-04-29
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new June 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $33.00 strike price has a current bid of 82 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $33.00, but will also collect the premium, putting the cost basis of the shares at $32.18 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $37.05/share today.
Because the $33.00 strike represents an approximate 11% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.48% return on the cash commitment, or 21.09% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $33.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $39.50 strike price has a current bid of $1.29. If an investor was to purchase shares of AA stock at the current price level of $37.05/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $39.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.09% if the stock gets called away at the June 11th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $39.50 strike highlighted in red:
Considering the fact that the $39.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.48% boost of extra return to the investor, or 29.55% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $37.05) to be 68%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $39.50 strike highlighted in red: Considering the fact that the $39.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the June 11th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $39.50 strike highlighted in red: Considering the fact that the $39.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new June 11th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $39.50 strike highlighted in red: Considering the fact that the $39.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the June 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new June 11th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new June 11th contracts and identified one put and one call contract of particular interest. Below is a chart showing AA's trailing twelve month trading history, with the $39.50 strike highlighted in red: Considering the fact that the $39.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the June 11th expiration.
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1049.0
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2021-04-21 00:00:00 UTC
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What’s Behind 14% Rise In Alcoa Stock In A Week?
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AA
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https://www.nasdaq.com/articles/whats-behind-14-rise-in-alcoa-stock-in-a-week-2021-04-21
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nan
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nan
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Alcoa stock (NYSE: AA) jumped an impressive 14% in the last one week (five trading days) and currently trades at a little less than $36 per share. The stock completely outperformed the market (S&P 500) which went up only 1.5% during this time. The recent rally was driven by strong Q1 2021 results. Alcoa’s Q1 2021 revenue and earnings have been the highest since 2018. It recorded revenue of $2,870 million in Q1 2021, reflecting a rise of 21% y-o-y. This was driven by higher prices and strong shipment growth. Net income more than doubled to $175 million, while EPS also increased by the same rate to $0.93 in Q1 2021. Alcoa also stated that it has signed agreements to repower Portland Aluminum smelter in the State of Victoria in Australia. Additionally, aluminum prices have remained strong over recent months and have, in fact, gone up 3% last week. Prices are likely to remain elevated over the next two years driven by higher demand. Higher aluminum price realization has led to expectations of improvement in Alcoa’s free cash flow, which the company is likely to use for deleveraging. Thus, expectations of improvement in fundamentals (proof of which is the strong Q1 2021 performance), stronger balance sheet and overall positive sentiment with respect to global aluminum prices, have led to a surge in Alcoa’s stock price over the last week.
However, is Alcoa stock set to continue its upward trajectory or could we expect some correction? We believe that there is a strong chance (more than 60% chance) of further rise in Alcoa stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Alcoa Stock Chances Of Rise for more details.
Five Day: AA 14%, vs. S&P500 1.5%; Outperformed market
(3% likelihood event)
Alcoa stock rose 14% over a five-day trading period ending 4/16/2021, compared to the broader market (S&P500) rise of 1.5%
A change of 14% or more over five trading days is a 3% likelihood event, which has occurred 81 times out of 2516 in the last ten years
Ten Days: AA 11%, vs. S&P500 4.3%; Outperformed market
(11% likelihood event)
Alcoa stock rose 11% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.3%
A change of 11% or more over ten trading days is a 11% likelihood event, which has occurred 280 times out of 2511 in the last ten years
Twenty-One Days: AA 12%, vs. S&P500 5.5%; Outperformed market
(16% likelihood event)
Alcoa stock rose 12% the last 21 trading days (one month), compared to broader market (S&P500) rise of 5.5%
A change of 12% or more over 21 trading days is a 16% likelihood event, which has occurred 398 times out of 2500 in the last ten years
Out of 79 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 14% or more, 49 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 49 out of 79, or about 62% chance of gain in AA stock over the coming month
While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa stock (NYSE: AA) jumped an impressive 14% in the last one week (five trading days) and currently trades at a little less than $36 per share. Five Day: AA 14%, vs. S&P500 1.5%; Outperformed market (3% likelihood event) Alcoa stock rose 14% over a five-day trading period ending 4/16/2021, compared to the broader market (S&P500) rise of 1.5% A change of 14% or more over five trading days is a 3% likelihood event, which has occurred 81 times out of 2516 in the last ten years Ten Days: AA 11%, vs. S&P500 4.3%; Outperformed market (11% likelihood event) Alcoa stock rose 11% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.3% A change of 11% or more over ten trading days is a 11% likelihood event, which has occurred 280 times out of 2511 in the last ten years Twenty-One Days: AA 12%, vs. S&P500 5.5%; Outperformed market (16% likelihood event) Alcoa stock rose 12% the last 21 trading days (one month), compared to broader market (S&P500) rise of 5.5% A change of 12% or more over 21 trading days is a 16% likelihood event, which has occurred 398 times out of 2500 in the last ten years Out of 79 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 14% or more, 49 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 49 out of 79, or about 62% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities.
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Five Day: AA 14%, vs. S&P500 1.5%; Outperformed market (3% likelihood event) Alcoa stock rose 14% over a five-day trading period ending 4/16/2021, compared to the broader market (S&P500) rise of 1.5% A change of 14% or more over five trading days is a 3% likelihood event, which has occurred 81 times out of 2516 in the last ten years Ten Days: AA 11%, vs. S&P500 4.3%; Outperformed market (11% likelihood event) Alcoa stock rose 11% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.3% A change of 11% or more over ten trading days is a 11% likelihood event, which has occurred 280 times out of 2511 in the last ten years Twenty-One Days: AA 12%, vs. S&P500 5.5%; Outperformed market (16% likelihood event) Alcoa stock rose 12% the last 21 trading days (one month), compared to broader market (S&P500) rise of 5.5% A change of 12% or more over 21 trading days is a 16% likelihood event, which has occurred 398 times out of 2500 in the last ten years Out of 79 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 14% or more, 49 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). Alcoa stock (NYSE: AA) jumped an impressive 14% in the last one week (five trading days) and currently trades at a little less than $36 per share. This historical pattern reflects 49 out of 79, or about 62% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities.
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Five Day: AA 14%, vs. S&P500 1.5%; Outperformed market (3% likelihood event) Alcoa stock rose 14% over a five-day trading period ending 4/16/2021, compared to the broader market (S&P500) rise of 1.5% A change of 14% or more over five trading days is a 3% likelihood event, which has occurred 81 times out of 2516 in the last ten years Ten Days: AA 11%, vs. S&P500 4.3%; Outperformed market (11% likelihood event) Alcoa stock rose 11% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.3% A change of 11% or more over ten trading days is a 11% likelihood event, which has occurred 280 times out of 2511 in the last ten years Twenty-One Days: AA 12%, vs. S&P500 5.5%; Outperformed market (16% likelihood event) Alcoa stock rose 12% the last 21 trading days (one month), compared to broader market (S&P500) rise of 5.5% A change of 12% or more over 21 trading days is a 16% likelihood event, which has occurred 398 times out of 2500 in the last ten years Out of 79 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 14% or more, 49 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 49 out of 79, or about 62% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Alcoa stock (NYSE: AA) jumped an impressive 14% in the last one week (five trading days) and currently trades at a little less than $36 per share.
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This historical pattern reflects 49 out of 79, or about 62% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Alcoa stock (NYSE: AA) jumped an impressive 14% in the last one week (five trading days) and currently trades at a little less than $36 per share. Five Day: AA 14%, vs. S&P500 1.5%; Outperformed market (3% likelihood event) Alcoa stock rose 14% over a five-day trading period ending 4/16/2021, compared to the broader market (S&P500) rise of 1.5% A change of 14% or more over five trading days is a 3% likelihood event, which has occurred 81 times out of 2516 in the last ten years Ten Days: AA 11%, vs. S&P500 4.3%; Outperformed market (11% likelihood event) Alcoa stock rose 11% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 4.3% A change of 11% or more over ten trading days is a 11% likelihood event, which has occurred 280 times out of 2511 in the last ten years Twenty-One Days: AA 12%, vs. S&P500 5.5%; Outperformed market (16% likelihood event) Alcoa stock rose 12% the last 21 trading days (one month), compared to broader market (S&P500) rise of 5.5% A change of 12% or more over 21 trading days is a 16% likelihood event, which has occurred 398 times out of 2500 in the last ten years Out of 79 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 14% or more, 49 of them resulted in AA stock rising over the subsequent one-month period (21 trading days).
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1050.0
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2021-04-19 00:00:00 UTC
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Alcoa Delivers Record 1Q Results As Higher Aluminum Prices Fuel Sales
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AA
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https://www.nasdaq.com/articles/alcoa-delivers-record-1q-results-as-higher-aluminum-prices-fuel-sales-2021-04-19
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nan
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nan
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Alcoa delivered its highest quarterly results since 2018 as higher prices of alumina and aluminum resulted in record revenues and income in 1Q. The alumina, bauxite, and aluminum products company reported revenues of $2.8 billion, up 20.5% year-on-year, beating consensus estimates of $2.63 billion. The company reported adjusted EPS of $0.79 that came in ahead of analysts' estimates of $0.45 per share.
Alcoa (AA) President and CEO, Roy Harvey said, “We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. We excelled from the top line to the bottom line, controlling production costs and capturing the benefits of improved demand and stronger prices for alumina and aluminum.”
“In addition to exceptional operating performance, we made the Company even stronger this quarter by improving the balance sheet. Using cash on hand and the proceeds from our debt issuance with our lowest-ever coupon rate, we paid off higher-interest rate notes in April and funded more of our pension obligations. This provides even greater flexibility to execute on our long-term strategy in the years ahead,” Harvey added.
The company’s record revenues were driven by increased shipments with third-party alumina shipments up 7% quarter-on-quarter due to higher production. Third-party shipments for aluminium rose 13% quarter-on-quarter as aluminium shipments resumed at San Ciprián in Spain.
Alcoa continues to expect rising demand for aluminum and continued economic recovery to fuel its growth for the rest of FY21. The company expects its Aluminium business to register double-digit growth year-on-year when it comes to sales of value-added products. AA’s shipments outlook for bauxite and aluminum remains unchanged from prior estimates.
For FY21, the company expects alumina shipments to range between 14 million metric tons and 14.1 million metric tons while total annual bauxite shipments are forecasted to be between 49 and 50 million dry metric tons. Alcoa sees the Aluminium segment shipping between 2.7 and 2.8 million metric tons. (See Alcoa stock analysis on TipRanks)
Following the first quarter results, B. Riley analyst Lucas Pipes raised the price target from $20 to $36 and reiterated a Hold rating on the stock. Pipes termed the results as “solid” as the company continued to implement initiatives including its strategic portfolio review and sale of non-core assets. The analyst cited the rise in prices of aluminium as a reason for raising the price target.
Shares of Alcoa have rallied 12.2% in the past five days.
Consensus among analysts is a Moderate Buy based on 3 Buys and 4 Holds. The average analyst price target stands at $36.14 and implies upside potential of 1.4% to current levels.
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SeaSpine Holdings Prices 4.5M Public Offering At $19.50 Per Share
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (AA) President and CEO, Roy Harvey said, “We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. AA’s shipments outlook for bauxite and aluminum remains unchanged from prior estimates. The company expects its Aluminium business to register double-digit growth year-on-year when it comes to sales of value-added products.
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Alcoa (AA) President and CEO, Roy Harvey said, “We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. AA’s shipments outlook for bauxite and aluminum remains unchanged from prior estimates. Alcoa delivered its highest quarterly results since 2018 as higher prices of alumina and aluminum resulted in record revenues and income in 1Q.
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Alcoa (AA) President and CEO, Roy Harvey said, “We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. AA’s shipments outlook for bauxite and aluminum remains unchanged from prior estimates. Alcoa delivered its highest quarterly results since 2018 as higher prices of alumina and aluminum resulted in record revenues and income in 1Q.
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Alcoa (AA) President and CEO, Roy Harvey said, “We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. AA’s shipments outlook for bauxite and aluminum remains unchanged from prior estimates. The alumina, bauxite, and aluminum products company reported revenues of $2.8 billion, up 20.5% year-on-year, beating consensus estimates of $2.63 billion.
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1051.0
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2021-04-16 00:00:00 UTC
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5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO
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AA
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https://www.nasdaq.com/articles/5-top-stock-trades-for-monday%3A-ba-ms-wmt-aa-ko-2021-04-16
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
We got another new record high in the S&P 500 as stocks continue to march higher ahead of earnings season. Now, let’s look at a few top stock trades going into next week.
Top Stock Trades for Monday No. 1: Boeing (BA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Shocker: Boeing (NYSE:BA) has more negative news about its 737 MAX jet, which is causing some selling pressure in the stock.
As a result, shares are breaking below the 61.8% retracement, as well as last week’s low. If Boeing loses the $245 level, it could create some selling pressure down toward the 10-week and 50-day moving averages, around $237 to $240.
Below that, and $232 is on the table, followed by the 100-day moving average.
10 Stocks to Buy for Your $5K Robinhood Portfolio
On the upside, though, a two-times weekly-up rotation would negate all of this bearish talk — propelling BA stock over the last two weeks worth of highs and the 100-week moving average. Above that, and Boeing stock can really take off.
Top Stock Trades for Monday No. 2: Morgan Stanley (MS)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Morgan Stanley (NYSE:MS) is moving lower after the company reported earnings, as it struggles to hold above short-term support.
Despite beating on earnings and revenue estimates, Morgan Stanley is breaking below the 10-day, 21-day, 50-day and 10-week moving averages. It’s also trading down to last week’s low.
If it gives us a two-times weekly-down rotation, it could put sub-$75 in play down to the 21-week and 100-day moving averages.
On the upside, however, a move back above $80 alleviates some of the selling pressure. But over $82 puts the highs back in play. While I like the financial stocks, I’m cautious with Morgan Stanley until it can prove otherwise.
Top Stock Trades for Monday No. 3: Walmart (WMT)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Walmart (NYSE:WMT) is a name I’ll be watching closely next week.
Last week, we got a weekly-up rotation, as well as a monthly-up rotation, as Walmart cleared both the prior week’s high and the March high.
This week, shares nearly challenged the prior week’s high, but backed off those levels as it came into the 21-week moving and downtrend resistance (blue line). It’s also giving us an inside week, as this week’s range is entirely contained within the prior week.
So, what am I getting at here? Next week — and preferably, early next week — I’d love to see a rotation over $141.12 that builds momentum, as shares go two-times weekly up over the 21-week moving average.
That could pave the way for a move to $144.50 (gap fill), followed by $148, then $150-plus.
7 Pet Stocks That Make Good Long-Term Holdings
If that setup comes to fruition, some traders may consider using this week’s low as their stop-loss.
Top Trades for Monday No. 4: Alcoa (AA)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Alcoa (NYSE:AA) is trading nicely after earnings, hitting new 52-week highs in the process.
Now over $35, let’s see if shares can rally to the 200-month moving average, then the 261.8% extension near $40.
On the downside, though, keep it simple. Look for the 10-week moving average to continue acting as support. Below the 200-week moving average and $26 is on the table.
Top Trades for Monday No. 5: Coca-Cola (KO)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Coca-Cola (NYSE:KO) will report earnings on Monday before the open. The stock has been very responsive between its 50% and 78.6% retracements.
From here, I would love to see a multi-week rotation higher, sending KO stock to the 78.6% retracement near $55 and preferably above this mark. A weekly close above $55 would open the door to $60, and potentially give Coca-Cola some much-needed momentum.
On the flip side, I would be a buyer on a pullback to the 200-week moving average and the 50% retracement, near $48.
On the date of publication, Bret Kenwell held a long position in WMT.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Click to Enlarge Source: Chart courtesy of TrendSpider Alcoa (NYSE:AA) is trading nicely after earnings, hitting new 52-week highs in the process. 4: Alcoa (AA) The post 5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO appeared first on InvestorPlace.
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Click to Enlarge Source: Chart courtesy of TrendSpider Alcoa (NYSE:AA) is trading nicely after earnings, hitting new 52-week highs in the process. 4: Alcoa (AA) The post 5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO appeared first on InvestorPlace.
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4: Alcoa (AA) Click to Enlarge Source: Chart courtesy of TrendSpider Alcoa (NYSE:AA) is trading nicely after earnings, hitting new 52-week highs in the process. The post 5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO appeared first on InvestorPlace.
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The post 5 Top Stock Trades for Monday: BA, MS, WMT, AA, KO appeared first on InvestorPlace. 4: Alcoa (AA) Click to Enlarge Source: Chart courtesy of TrendSpider Alcoa (NYSE:AA) is trading nicely after earnings, hitting new 52-week highs in the process.
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1052.0
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2021-04-16 00:00:00 UTC
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Why Alcoa Stock Just Popped
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-just-popped-2021-04-16
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nan
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nan
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What happened
Alcoa (NYSE: AA) stock raced out of the gate Friday, as shares of the metals giant jumped 5.6% through 10 a.m. EDT. The company reported a big earnings beat last night.
Expected by analysts to earn $0.46 per share pro forma on sales of $2.65 billion in its fiscal first quarter of 2021, Alcoa instead reported a $0.79 adjusted profit, and sales of $2.87 billion.
Image source: Getty Images.
So what
Alcoa boasted that Q1 2021 earnings set post-2018 records for both revenue and income. Pro forma profits tripled sequentially and reversed a year-earlier loss. Sales were up 20% both sequentially and year over year. Additionally, Alcoa was profitable for the quarter according to generally accepted accounting principles (GAAP) -- earning $0.93 per share.
Now what
Both volumes shipped and price per ton improved for Alcoa last quarter, indicating strong demand for aluminum and leading Alcoa management to predict "a strong 2021 based on continued economic recovery and increased demand for aluminum in all end markets."
Specifically, Alcoa is projecting growing volumes of both bauxite and raw aluminum shipped this year, and "double digit" increases in shipments of "value-add products" (i.e., aluminum manufactured in "specific shapes and alloys such as billet, slab, foundry and rod.")
Alcoa didn't provide precise numbers for what it expects to do in terms of sales and profits this year, but for what it's worth, analysts are forecasting sales in excess of $10.4 billion (up 12% over last year) and profits of $2.58 per share (versus a loss in 2020).
10 stocks we like better than Alcoa Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Alcoa (NYSE: AA) stock raced out of the gate Friday, as shares of the metals giant jumped 5.6% through 10 a.m. EDT. Additionally, Alcoa was profitable for the quarter according to generally accepted accounting principles (GAAP) -- earning $0.93 per share. Now what Both volumes shipped and price per ton improved for Alcoa last quarter, indicating strong demand for aluminum and leading Alcoa management to predict "a strong 2021 based on continued economic recovery and increased demand for aluminum in all end markets."
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What happened Alcoa (NYSE: AA) stock raced out of the gate Friday, as shares of the metals giant jumped 5.6% through 10 a.m. EDT. Additionally, Alcoa was profitable for the quarter according to generally accepted accounting principles (GAAP) -- earning $0.93 per share. Expected by analysts to earn $0.46 per share pro forma on sales of $2.65 billion in its fiscal first quarter of 2021, Alcoa instead reported a $0.79 adjusted profit, and sales of $2.87 billion.
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What happened Alcoa (NYSE: AA) stock raced out of the gate Friday, as shares of the metals giant jumped 5.6% through 10 a.m. EDT. Additionally, Alcoa was profitable for the quarter according to generally accepted accounting principles (GAAP) -- earning $0.93 per share. Expected by analysts to earn $0.46 per share pro forma on sales of $2.65 billion in its fiscal first quarter of 2021, Alcoa instead reported a $0.79 adjusted profit, and sales of $2.87 billion.
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What happened Alcoa (NYSE: AA) stock raced out of the gate Friday, as shares of the metals giant jumped 5.6% through 10 a.m. EDT. Additionally, Alcoa was profitable for the quarter according to generally accepted accounting principles (GAAP) -- earning $0.93 per share. Expected by analysts to earn $0.46 per share pro forma on sales of $2.65 billion in its fiscal first quarter of 2021, Alcoa instead reported a $0.79 adjusted profit, and sales of $2.87 billion.
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1053.0
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2021-04-15 00:00:00 UTC
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Alcoa (AA) 1st Quarter Earnings: What to Expect
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AA
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https://www.nasdaq.com/articles/alcoa-aa-1st-quarter-earnings%3A-what-to-expect-2021-04-15
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nan
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nan
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A
fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. Alcoa management, which has focused on scaling the alumina and aluminum production segment, has done an exceptional jobs exiting non-core businesses, while improving operating efficiency. But how much rosier can things get?
The aluminum giant s set to report first quarter fiscal 2021 earnings results after the closing bell Thursday. Alcoa shares have been one of the bright spots in the materials sector, rising almost 10.5% over the past month and is now up 36% year to date. This compares to the 19% rise in the SPDR S&P Metals & Mining ETF (XME). Aside from Alcoa’s own strong operational performance, the company is being rewarded for an improved balance sheet and its overall financial position.
Specifically, from a cash flow standpoint, an argument can be made that Alcoa is undervalued, particularly given the optimism surrounding the Biden administration’s $2 trillion infrastructure spending plan that is aimed at repairing the country’s roads and bridges, among other projects. Investors are anticipating improving end-market conditions in the aluminum market. But the question remains, how much of that $2 trillion infrastructure expenditures will come to Alcoa?
The company last quarter posted its tenth consecutive quarterly profit beat, thanks to improving aluminum business. And the outlook for aluminum in 2021 continues to look far better than it did at any point over the past year. All of that said, while there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
For the quarter that ended March, Wall Street expects the New York-based company to earn 46 cents per share on revenue of $2.65 billion. This compares to the year-ago quarter when it posted a loss of 23 cents per share on revenue of $2.38 billion. For the full year, ending in December, earnings are projected to be $2.55 per share, up from a loss of $1.16 a year ago, while full-year revenue of $10.41 billion would rise 12.1% year over year.
The quarterly and yearly upbeat revenue and profit forecasts are impressive when considering where these estimates were at the height of the pandemic as the company dealt with oversupply conditions which has been the result of lowered demand and suspending operations. Citing a recovering global economy, Alcoa now projects growth ahead of estimates for the next several quarters. For 2021, the company is targeting for roughly 7% demand growth, which would outpace supply.
This optimism was driven by an improving fourth quarter, during which aluminum prices rose about 9% year over year and 12% sequentially, marking the best prices in three years. Notably, this is even though Q4 revenue of $2.4 billion declined 2% year over year, though it marked a 1% rise from Q3. That was nonetheless good enough to beat consensus estimates by about 2%. With Q4 gross margin improving two basis points year over year, Alcoa delivered 4% rise in adjusted Ebitda reaching $361M, beating expectations by 4%.
Overall, this was a strong quarter across the board for Alcoa, thanks to rising demand for aluminum. While the stock has been appropriately rewarded, the management must project some level of confidence for how they believe the underlying business will perform in 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. Alcoa management, which has focused on scaling the alumina and aluminum production segment, has done an exceptional jobs exiting non-core businesses, while improving operating efficiency. Specifically, from a cash flow standpoint, an argument can be made that Alcoa is undervalued, particularly given the optimism surrounding the Biden administration’s $2 trillion infrastructure spending plan that is aimed at repairing the country’s roads and bridges, among other projects.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. The company last quarter posted its tenth consecutive quarterly profit beat, thanks to improving aluminum business. For the quarter that ended March, Wall Street expects the New York-based company to earn 46 cents per share on revenue of $2.65 billion.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. For the full year, ending in December, earnings are projected to be $2.55 per share, up from a loss of $1.16 a year ago, while full-year revenue of $10.41 billion would rise 12.1% year over year. This optimism was driven by an improving fourth quarter, during which aluminum prices rose about 9% year over year and 12% sequentially, marking the best prices in three years.
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fter losing almost 40% of its value over the past three years, it appears sentiment on Alcoa’s (AA) cyclical commodity business has improved. The company last quarter posted its tenth consecutive quarterly profit beat, thanks to improving aluminum business. All of that said, while there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
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1054.0
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2021-04-15 00:00:00 UTC
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Alcoa Corp. Q1 adjusted earnings Beat Estimates
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AA
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https://www.nasdaq.com/articles/alcoa-corp.-q1-adjusted-earnings-beat-estimates-2021-04-15
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nan
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nan
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(RTTNews) - Alcoa Corp. (AA) reported earnings for its first quarter that rose from last year.
The company's profit came in at $175 million, or $0.93 per share. This compares with $80 million, or $0.43 per share, in last year's first quarter.
Excluding items, Alcoa Corp. reported adjusted earnings of $150 million or $0.79 per share for the period.
Analysts had expected the company to earn $0.46 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 20.6% to $2.87 billion from $2.38 billion last year.
Alcoa Corp. earnings at a glance:
-Earnings (Q1): $150 Mln. vs. -$42 Mln. last year. -EPS (Q1): $0.79 vs. -$0.23 last year. -Analysts Estimate: $0.46 -Revenue (Q1): $2.87 Bln vs. $2.38 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA) reported earnings for its first quarter that rose from last year. Excluding items, Alcoa Corp. reported adjusted earnings of $150 million or $0.79 per share for the period. Analysts had expected the company to earn $0.46 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Alcoa Corp. (AA) reported earnings for its first quarter that rose from last year. Excluding items, Alcoa Corp. reported adjusted earnings of $150 million or $0.79 per share for the period. The company's revenue for the quarter rose 20.6% to $2.87 billion from $2.38 billion last year.
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(RTTNews) - Alcoa Corp. (AA) reported earnings for its first quarter that rose from last year. This compares with $80 million, or $0.43 per share, in last year's first quarter. Excluding items, Alcoa Corp. reported adjusted earnings of $150 million or $0.79 per share for the period.
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(RTTNews) - Alcoa Corp. (AA) reported earnings for its first quarter that rose from last year. This compares with $80 million, or $0.43 per share, in last year's first quarter. Excluding items, Alcoa Corp. reported adjusted earnings of $150 million or $0.79 per share for the period.
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1055.0
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2021-04-15 00:00:00 UTC
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Alcoa Q1 Profit Trumps Street View As Aluminum Shipments And Prices Rise
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AA
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https://www.nasdaq.com/articles/alcoa-q1-profit-trumps-street-view-as-aluminum-shipments-and-prices-rise-2021-04-15
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nan
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nan
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Thursday reported a first-quarter profit that more than doubled from a year ago, driven by increased shipments and prices. Both adjusted earnings and revenues for the quarter trumped Wall Street analysts' estimates.
Pittsburgh-based Alcoa reported first-quarter profit of $175 million or $0.93 per share, an increase from last year's profit of $80 million or $0.43 per share last year.
Excluding one-time items, earnings for the quarter were $150 million or $0.79 per share, compared to last year's loss of $42 million or $0.23 per share. On average, 8 analysts polled by Thomson Reuters expected earnings of $0.46 per share.
Revenues for the quarter rose to $2.87 billion from $2.38 billion a year ago. Analysts had a consensus revenue estimate of $2.65 billion. Revenue growth were driven by higher aluminum and alumina prices, combined with increased shipments.
"We had an excellent first quarter with our best quarterly result since a record-setting year in 2018," said Alcoa President and CEO Roy Harvey. "We excelled from the top line to the bottom line, controlling production costs and capturing the benefits of improved demand and stronger prices for alumina and aluminum."
Alumina shipments rose to 2.47 million metric tons from 2.37 million metric tons last year. Aluminum shipments rose to 831 thousand metric tons from 725 thousand metric tons last year. Bauxite shipments increased to 1.5 million dry metric tons from 1.4 million last year.
Average price per metric ton of alumina increased to $308 from $299 last year, while aluminum's average price rose to $2,308 per metric ton from $1,988 per metric ton last year.
Looking forward to 2021, the company now expects total alumina shipments to between 14.0 and 14.1 million metric tons. Previously, the company expected alumina shipments to be stable compared to 2020 and come between 13.9 and 14.0 million metric tons.
Alcoa said it is expecting a strong 2021 based on continued economic recovery and increased demand for aluminum in all end markets.
AA closed Thursday's trading at $32.84, down $0.55 or 1.65%, on the NYSE. The stock, however, gained $0.86 or 2.62%, in the after-hours trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Thursday reported a first-quarter profit that more than doubled from a year ago, driven by increased shipments and prices. AA closed Thursday's trading at $32.84, down $0.55 or 1.65%, on the NYSE. Revenue growth were driven by higher aluminum and alumina prices, combined with increased shipments.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Thursday reported a first-quarter profit that more than doubled from a year ago, driven by increased shipments and prices. AA closed Thursday's trading at $32.84, down $0.55 or 1.65%, on the NYSE. Alumina shipments rose to 2.47 million metric tons from 2.37 million metric tons last year.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Thursday reported a first-quarter profit that more than doubled from a year ago, driven by increased shipments and prices. AA closed Thursday's trading at $32.84, down $0.55 or 1.65%, on the NYSE. Pittsburgh-based Alcoa reported first-quarter profit of $175 million or $0.93 per share, an increase from last year's profit of $80 million or $0.43 per share last year.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Thursday reported a first-quarter profit that more than doubled from a year ago, driven by increased shipments and prices. AA closed Thursday's trading at $32.84, down $0.55 or 1.65%, on the NYSE. Revenues for the quarter rose to $2.87 billion from $2.38 billion a year ago.
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1056.0
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2021-04-15 00:00:00 UTC
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Alcoa Corporation (AA) Q1 2021 Earnings Call Transcript
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AA
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https://www.nasdaq.com/articles/alcoa-corporation-aa-q1-2021-earnings-call-transcript-2021-04-16
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Image source: The Motley Fool.
Alcoa Corporation (NYSE: AA)
Q1 2021 Earnings Call
Apr 15, 2021, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon, and welcome to the Alcoa Corporation First Quarter 2020 [Phonetic] Earnings Presentation and Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]
I would now like to turn the conference over to James Dwyer, Vice President of Investor Relations. Please go ahead.
10 stocks we like better than Alcoa Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
James Dwyer -- Vice President of Investor Relations
Thank you, and good day, everyone. I'm joined today by Roy Harvey, Alcoa Corporation's President and Chief Executive Officer; and William Oplinger, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Roy and Bill.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.
In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, as previously announced, the earnings release and slide presentation are available on our website.
With that, here's Roy.
Roy C. Harvey -- President and Chief Executive Officer
Thank you, Jim. And thanks to everyone for joining our call. It is a real pleasure to present Alcoa's excellent first quarter. As you can see from our release, our results were strong on both the top and bottom lines with our strongest results since the record-setting year in 2018. I'm very happy with the progress we've made at Alcoa on multiple fronts, particularly this quarter. As the world's economies continue to spin up from the lows of last year's pandemic-induced lockdowns, we are capturing the benefits of stronger markets. We are delivering the customers the sustainable materials they need to meet improved demand. Importantly, we are operating safely and reliably, demonstrating the same kind of relentless discipline that helped guide us through more turbulent times. Bill will discuss the financial results in more detail, but I'd like to take the opportunity to characterize our most important achievements.
We had a net income of $175 million or $0.93 per share. On a year-over-year basis, this is more than double the $80 million in the first quarter of 2020. Adjusted net income was $150 million, which more than tripled last quarter's $49 million. Adjusted EBITDA, excluding special items, was $521 million, a 44% increase sequentially. And significantly, we finished the quarter with $2.5 billion of cash on hand. I'm proud of the work our team is doing to drive each of these results. As Alcoans, we never shy away from getting the hard work done, working inclusively and remaining focused on executing against our goals. Our company is getting better and stronger, and this was certainly the case in the first quarter.
Before we get into the details though, I want to emphasize again that Alcoa always places an emphasis on our values and our strategic priorities, regardless of market conditions. The COVID-19 crisis has served as a strong pressure test. When the pandemic hit last year, Alcoa was well prepared to implement rigorous processes to protect our people and support our communities, keep our operations running, and preserve and generate cash. Today, our values and our strategic priorities are working to keep us on track and to help drive positive results. Most importantly, we had no fatal or serious injuries in the quarter. The safety of our workforce, whether employees or contractors, is always our most important responsibility, and our teams continue to make progress in using proactive tools to keep all of our people safe.
In the first quarter, we also continued to make progress on our strategy, accomplishing several key actions. First, we successfully closed on the $670 million sale of the Warrick rolling mill in Indiana, a non-core asset. That sale, combined with the Gum Springs sale last year, put us at the top of our target of between $500 million and $1 billion for non-core asset sales, although we will continue to pursue other opportunities where it makes sense.
Last month, in our Aluminum segment, we reached an agreement to repower the Portland Aluminium smelter in Australia. Our agreements with multiple power providers and the Australian government will improve the smelter's competitiveness and also help provide reliability to the electric grid in the State of Victoria. Also, our strong cash position, coupled with a favorable debt market, provided Alcoa an opportunity to pre-fund certain pension obligations and pay off higher interest rate debt via $500 million debt issuance at a 4.125% interest rate. This was the lowest rate debt we've ever issued as an independent company.
Earlier this month, we retired in full the $750 million senior notes that were due in 2024, which were issued at a 6.75% coupon. In April, we also contributed $500 million to our US pension plans, improving our funded status. These actions position Alcoa for minimal cash outflows for debt repayment, or pension contributions for the next several years. This provides added optionality to use future excess free cash for items aligned with our capital allocation framework, and Bill will discuss more about this in a moment.
We are also seeing stronger markets, markets that are evolving to reflect the key issues facing our planet. We are fortunate that aluminum is a sustainable solution to help solve many challenges due to its inherent qualities. It is lightweight, strong, durable and infinitely recyclable. We are also extremely well positioned to meet our customers' demands for sustainably produced products. As a company with an integrated upstream aluminum value chain, we have a distinct advantage to differentiate with sustainably produced bauxite, alumina and aluminum. And additionally, we already have the industry's most comprehensive portfolio of low-carbon products through our Sustana family, which includes the industry's first and only low-carbon smelter grade alumina product.
Finally, an important point to consider for the future is China's evolving role in the global aluminum industry. We have been encouraged to see the strict discipline now evident in their issuance and enforcement of operating permits that comply with their supply side reforms and environmental targets. And over these last months, it is obvious that the country, with the world's largest capacity in aluminum, is working to reduce its carbon footprint with increasing impacts on today's and tomorrow's aluminum operations. Alcoa is ready to win in this rapidly changing world, with improving markets, increased environmental discipline in China and our strong ESG focus in upstream aluminum industry.
With that, let's get straight to the results. Bill, please go ahead.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Roy. First, before diving into what was a very good quarter financially and operationally, let's cover the four important strategic actions taken in March and early April, wherein we significantly improved our cash, debt maturity profile and liquidity position. First, in early March, we issued at 4.125% $500 million of eight-year bonds maturing in 2029. Second, at the end of March, we closed on the Warrick rolling mill sale to Kaiser Aluminum generating cash proceeds of approximately $600 million. These two actions took our cash balance to $2.5 billion on March 31. Thirdly, on April 1, we funded $500 million into our US pension plans. And lastly, on April 7, we called the entire $750 million of our 6.75% eight-year bonds maturing in 2024. On a pro forma basis, the net of these actions brings our cash balance to $1.3 billion, in line with our capital allocation framework target of retaining $1 billion cash on the balance sheet and eliminates all material debt maturities until 2026. These actions also significantly moved us toward meeting our adjusted proportional net debt target and created substantial pension funding flexibility.
We believe that our optimal capital structure and WACC is achieved with the proportional adjusted net debt of $2 billion to $2.5 billion at the end of the first quarter. We improved that metric over $700 million from year-end to $2.7 billion and just $200 million from the top of our target range. Further progress on achieving the net debt target could be made through reducing debt, lowering pension, OPEB net liability or increasing cash on hand.
The $500 million pension funding substantially improves the US pension and our overall pension position. Funded status for the US pensions moved from 81% at year-end to an estimate of greater than 95% on April 1 and creates a pre-funding balance of roughly $1 billion. Further, taken as a whole, our global pensions are estimated to be greater than 90% funded. The change in funded status benefits Alcoa in two ways. First, it allows us to de-risk the pension investment strategy. It reduces balance sheet volatility associated with both asset returns and discount rate changes. Second, it can free up future cash flows. Should we choose to direct cash flows to other uses or should funded status continue to improve, the pre-funding balance can be used to meet our expected minimum funding requirements for the US pensions.
Now, let's talk about the first quarter of 2021 in more detail. Revenues increased approximately $500 million, up 20% sequentially and 21% year-over-year on higher aluminum and alumina prices. Higher revenues translated into earnings per share of $0.93 per share on a GAAP basis or $0.79 per share after special items that include the gain on sale of the Warrick rolling mill.
Adjusted EBITDA, excluding special items, was $521 million, up 44% sequentially and up 62%, compared to the first quarter of 2020. Looking at drivers of adjusted EBITDA, excluding special items, the entire benefit in aluminum and alumina prices flow through to the bottom line. Unfavorable currency, higher energy prices and slightly lower seasonal shipments were totally offset by the resumption of shipments at the San Ciprian smelter and favorable inventory costs.
In the segments, Bauxite adjusted EBITDA was lower on the intercompany pricing change we announced in January, non-recurrence of a favorable contract true-up in the fourth quarter of 2020 and earnings at non-operated mines. Alumina more than doubled, up $130 million sequentially to $227 million on higher alumina prices and lower bauxite cost. Aluminum improved 56% to $283 million in the first quarter, primarily due to higher metal prices, slightly offset by higher alumina costs.
Turning to the balance sheet and cash flow. Working capital usually increases in the first quarter and excluding the impact of the Warrick rolling mill, days working capital increased five days sequentially to 25 days and improved four days compared to the year-ago quarter. Other key metrics also improved, as return on equity was 18.5% and the $2.5 billion cash balance helped to reduce our proportional adjusted net debt to $2.7 billion improving over $700 million from year-end 2020.
Free cash flow, less NCI distributions, was negative $131 million, reflecting the expected use of working capital in the first quarter, approximately $344 million. Cash sources of $1.6 billion are from nearly equal contributions from adjusted EBITDA, the rolling mill sale and the debt issue. Uses after working capital included capital expenditures of $75 million, cash income taxes of $71 million and pension/OPEB funding of $70 million, which does not include the $500 million funded April 1.
Our outlook for the year continues the trends set by our very good first quarter. Shipments are expected to remain at high levels, supported by consistent production levels at the operations. We've increased the estimated full-year 2021 alumina shipments range by 100,000 tons. Several cost elements are expected to improve a total of $45 million on a full-year basis, with transformation costs better $5 million, non-operating pension and OPEB expense better $25 million and interest expense better $15 million. Cash flow impacts now note the additional US pension funding of $500 million made on April 1 and assume using the US pre-funding balance for the remainder of the year, and also note the debt repayment of $750 million made on April 7. All other cash flow impacts remain on track.
For the coming quarter, we will no longer have earnings from the Warrick rolling mill, which booked adjusted EBITDA of $14 million in the first quarter. However, we expect to see increased benefit from the current higher aluminum market prices and continued improvement in value-add aluminum shipments and prices. As is often the case, we expect that the second quarter will be our highest level of maintenance activity for the year, approximately $25 million higher than the first quarter and then return to a lower level in the third quarter. Also, based on current energy market conditions around the world, we expect an unfavorable impact of $20 million sequentially. Finally, we expect tax expense for the second quarter to be approximately $90 million. In summary, we are on track for an excellent year, consistent with a very good first quarter.
Now, let me turn it back to Roy.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Bill. Next, I'd like to highlight the improvements we're seeing across the fundamentals of our industry. Perhaps the easiest way to demonstrate the impact of these underlying changes is by examining the realized price for aluminum, which is the highest we've seen since 2018. As you can see, prices have continued a steady upward trend from the lows at the start of the global pandemic. The average realized price was up 36% since the low in the second quarter of 2020. Economic recovery, manufacturing restarts and tightness in the physical availability of aluminum have all contributed to this latest price rally. We have observed strong macroeconomic trends in the first quarter, including positive GDP and industrial production growth in many of the world's leading economies. Also, the announced and implemented monetary and fiscal stimulus programs have supported stronger demand in aluminum's end use markets, which is expected to continue as vaccination efforts progress, lockdowns are eased and additional stimulus measures reach further into the economy.
Now, turning to the right-hand side of the slide and our markets specifically. In aluminum, we saw an approximate 10% increase in shipments of value-add products during the first quarter. This was the third consecutive quarter of sequential improvement for our metal cast in specific shapes for alloys. Also, we are seeing significant year-over-year growth in our order book for these value-add products. We currently expect value-add products to represent more than half of our shipments in 2021and to grow more than 20% year-over-year.
In alumina, the average API price for the quarter increased sequentially. Currently, however, high freight rates have pressured the alumina price. We expect our smelter grade alumina shipments to slightly increase in 2021. In bauxite, we saw lower sequential third-party segment revenue due to lower shipments. As I said last quarter, we expect full-year 2021 third-party bauxite shipments to increase as we continue to boost production.
Next, I'd like to spend a few moments on aluminum industry fundamentals, specifically with regard to China. Changing dynamics in this country have the potential to have a major impact on the global primary aluminum industry. Over the last 10 years, China increased its global production of aluminum, and this was particularly acute from 2011 to 2017, as its manufacturing sector grew at a breakneck pace with subsidized primary aluminum capacity. Many of these unfair subsidies continue today. However, growth has been lower over the last four to five years, due to a combination of slower development in manufacturing, as well as China's own supply side reforms. This includes strictly enforcing the capacity permit program with the cap at 45 million tons of annualized capacity and other constraints that will limit capacity in certain provinces.
Over the last year, China has announced other policies that could further impact the aluminum industry. It has set carbon dioxide reduction goals for the country, announcing last year targets of achieving a peak in emissions by 2030 and carbon neutrality by 2060. China has also announced its latest five-year plan to reduce by 18% its carbon intensity per unit of GDP by 2025. The plan includes carbon intensity targets for individual provinces. And we are already seeing these changes on the ground. Some provinces are preventing the launch of new energy-intensive industrial projects, including primary aluminum smelting in order to meet their targets, and others are canceling preferential power tariffs for smelters. We have seen this occur in two provinces. Inner Mongolia curtailed smelters and delayed or canceled projects. And Gansu canceled preferential smelter power tariffs.
In addition, the China Non-Ferrous Metals Industry Association announced in April a draft goal that calls for peaking emissions in the industry by 2025, five years ahead of the National Carbon Peak Goal, as well as a target to reduce by 40% industry carbon emissions by 2040.
Furthermore, China has launched its own National Emissions Trading scheme this year, which will first target the power industry, including captive power. It is likely that the next round will focus on emissions-intensive industries and include primary aluminum. Adding costs and supply restrictions to carbon emissions will be a challenge for China's domestic primary aluminum smelting industry, of which more than 80% is powered by coal. In fact, 5% of China's total carbon emissions come from the non-ferrous metals industry, the majority of which comes from primary aluminum smelting. To put that in perspective, China's primary aluminum industry alone produces a similar amount of carbon emissions each year as the entire country of Australia.
In summary, China's recent moves toward decarbonization have the potential to address persistent overcapacity in the country. Given the pressures and constraints in China, it is likely that we will see supply growth in the country slow even further as the primary aluminum industry there approaches its 45 million ton capacity cap, and that can drive significant positive change in the global aluminum industry's fundamentals.
China is not the only significant change occurring across our industry. Other global economies are also taken steps to transition to a carbon-constrained world. And our stakeholders are demanding rapid change when it comes to a broad range of ESG-related issues. And as I've noted previously, Alcoa is well positioned to meet the demands of this new sustainably focused world. Our Sustana line of low-carbon products is the most comprehensive in the aluminum industry and includes EcoSource, the world's first and only low-carbon smelter grade alumina product. We are the world's largest third-party provider of alumina, and our refining system also has the globe's lowest average carbon dioxide equivalents, something that we are leveraging with this differentiated product.
EcoSource supports decarbonizing aluminum, while expanding our Sustana line to the broader aluminum value chain. It offers no more than 0.6 metric tons of carbon dioxide equivalents per metric ton of alumina, which is half of the global alumina industry's average carbon content, and our measurement includes direct and indirect emissions from mining and refining. We expect to make our first customer shipment of EcoSource alumina in May.
Meanwhile, we're also seeing additional demand for aluminum in our Sustana line and for metal certified by the Aluminum Stewardship Initiative. Alcoa has operations in all three of our segments certified to ASI's exacting standards, and we have earned both ASI's Performance and Chain of Custody Certification, which allow us to market ASI certified products across our value chain.
In March, we announced that metal from our joint venture ELYSIS and our low-carbon EcoLum, which is produced with no more than 4.0 tons of carbon dioxide equivalents, is being used in the wheels of the Audi e-tron GT, the manufacturer's first electric sportscar. We supply the low-carbon aluminum to RONAL GROUP, which produced the wheels with EcoLum and an allocation of metal produced from the ELYSIS's zero-carbon smelting technology that we invented. That technology, which eliminates all greenhouse gases, is now being ramped up to a commercial scale by the ELYSIS joint venture.
While the market for low-carbon aluminum continues to develop, we are well positioned to fill the needs of a society calling for lower greenhouse gas emissions and customers who demand products that include assurances of responsible production. Whether it's electric vehicles, wind turbines, solar panels or battery technology, aluminum is an essential material for global economies that are working to address climate change and control carbon emissions. Carbon pricing initiatives are either in place now or being scheduled for implementation in 64 jurisdictions, including the European Union, Canada and China. And 31 countries in the EU have GHG reduction targets in place or net zero pledges. And here in the US, the Biden administration is making climate change a top priority. Alcoa has specific GHG reduction targets that align with the Paris climate accord, and we are well positioned for this important transition occurring in theglobal market
Next, I want to reinforce the tremendous progress we've made on our strategic priorities. At Alcoa, we have a relentless focus on continuous improvement. I'm impressed by our global team of employees, when we set aggressive goals we stretch to achieve them. Last year was the first full year working within the new operating model, which further streamlined our business. It delivered an annual run rate of $60 million in savings. Importantly, we have this in place before the pandemic, and the fact that we performed so well in a time of crisis demonstrates that we designed a system that can work well for the future. We can now count this action as fully completed and working effectively. We have also achieved our goal of generating between $500 million and $1 billion from the sale of non-core assets. With the Gum Springs sale last year and the Warrick rolling mill sale last month, we've completed this program finishing toward the top end of the target.
Finally, we've made progress in our portfolio review, which includes opportunities for significant improvement, curtailments, closures or divestitures. Last month, we were happy to reach new power agreements with the Portland aluminum smelter. We appreciate the collaboration with multiple power generators, the Australian Federal Government and the State of Victoria in working with us to help improve the smelter's competitiveness.
Also, we continue to work on solutions for the San Ciprian smelter in Spain. We agreed with the workers' representatives and the government to pursue an exclusive sales process with the Spanish government-owned entity. We've complied with that agreement and are working in good faith with all our stakeholders to find the best solution. It's important to note that we're now in the second year of this five-year portfolio review program, and we will continue to work as expeditiously as possible to provide clarity for our employees, communities and other stakeholders.
Finally, as we prepare to take your questions, I want to emphasize three major points to leave you with today. First, as Bill detailed, our balance sheet is solid, due to the numerous actions we've taken, including paying off higher interest rate debt and reducing our pension net liability, which has improved our net debt position. With no major cash outlays due in the foreseeable future and with significant cash on hand, we have much greater flexibility within our capital allocation frame.
Second, we've delivered on some key components on our strategic actions that have improved this company for the long term. We're doing exactly what we've said, improving Alcoa, so it can be successful through all market cycles. We will continue to drive for consistent improvements, that's the Alcoa away.
Third, we are working to define what it means to be a sustainable aluminum company, with best-in-class processes from mine to metal, the most comprehensive low-carbon products portfolio in the industry and the continued pursuit of operational excellence. We will continue to act with integrity, operate with excellence and care for people. All of this aligns too with our strategic priorities, including our work to advance sustainably.
Thanks for your attention. And Bill and I are now ready to welcome your questions. Operator?
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] Our first question today comes from Carlos De Alba with Morgan Stanley.
Carlos De Alba -- Morgan Stanley -- Analyst
Thank you very much. Congratulations, Roy and Bill. Just the question -- first question is with a greater flexibility that you have achieved in your balance sheet and the cash balance that you have, how should we think about the priorities and what that flexibility -- what would you like to do with this flexibility? Any update on the growth projects in alumina or any other things that you might have in mind? And then if I may just ask, is it possible to quantify or to either qualitative or quantitative constructively the potential benefits of the renegotiated Portland smelter agreements for the energy cost? Thank you guys.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Roy, do you want me to take the capital allocation question?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Why don't you take it in general? And I can add a few comments at the end.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Sure. So, Carlos, great question on capital allocation. Some of the moves that we've made this year and some of the tailwinds that we have in the market have really positioned the company to successfully execute on our capital allocation program. You saw the big decline in proportional net debt in the first quarter. That's largely due to the sale of the Warrick facility. So we've been able to get our proportional net debt down to $2.7 billion. Remember, we have a target range of $2 billion to $2.5 billion.
So when we look at capital allocation program, there's four key areas for allocation of excess free cash flow. The first is proportional -- we are continuing to make improvements on proportional net debt. I would tell you that, that has been a focus area for us, and it will continue to be a primary focus for us. And I also believe that we should be able to get within our target range this year.
Secondly, and these are not necessarily in rank order. We've got returns to shareholders. We've got the continued actions on the portfolio review. And then lastly, the midsized growth projects that we've talked about in the past. I'll address the last one. At this point, the midsized growth projects, specifically in Australia and Brazil refining, are currently on hold. They were put on hold in 2020. We will reevaluate those projects over time. But at this point, those are on hold. So those are the priorities for our capital allocation. We've made great progress on the debt reduction. I think we'll continue to make great progress on the debt reduction in today's market environment and that's how we're moving forward.
As far as the Portland transaction goes, I'm really pleased to be able to repower Portland. It's a great facility, really strong workforce, good strong technology, and we've not released details about the power contract. In today's market environment, it's a very strong facility, but I really can't quantify anything much more than that for you, Carlos. Other than the fact that it is one of the assets that was under portfolio review and now that we've got it repowered, we're really pleased that facility has a future for the next five years.
Roy C. Harvey -- President and Chief Executive Officer
And, Carlos, if I can just add a couple of quick comments because I completely agree with Bill. On Portland, I think one of the -- one of my favorite things about this announcement was the fact that during this portfolio review, we've been trying to be very clear that there is a number of potential outcomes, and it's really good to see us be able to put in place this five-year deal for our facility that's so strong and is competitive now with that improved power price as Portland. So, I think just a really great example of what you can do when you have on power providers and governments and a company and workforce that's looking to try and make an improvement.
And on the capital allocation question, again, I think Bill hit it right on. I think we're -- I'm just incredibly pleased that we've been able to make so much progress, particularly on improving the net debt target that we had. And even through the midst of the pandemic, we've also been able to move forward and work on our portfolio restructuring. We've been able to take real steps that really helps to build optionality for us. And so, I would say in coming out of first quarter and the rest of 2021 stretching in front of us, we're really well positioned with a lot of great options in front of us.
Carlos De Alba -- Morgan Stanley -- Analyst
Thank you very much. Sorry.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
And if I could just tag on one more comment, Carlos. We talked about the proportional net debt. But underneath the proportional net debt, you've got the debt side and pension. It should be apparent to everyone through this press release that our pension situation is markedly better today than it has been since we were an independent company. Our global pension systems are greater than 90% funded. Our US pension system is greater than 95% funded. And the fact that we pre-funded an additional $500 million gives us $1 billion pre-funding balance that essentially eliminates the need to make contributions to the US pensions through 2025. And that's all assuming today's interest rates and today's asset returns you can never count on that staying the same, but as we look forward, that frees up significant cash flow. If you simply compare the amount of cash that we're projecting today versus what was in the most recent 10-K. If we use our pre-funding balance, it reduces our cash requirements by a couple of hundred million dollars a year over the next few years. So it gives us a lot of flexibility. It gets us very close to our net debt target and just strengthens the company.
Carlos De Alba -- Morgan Stanley -- Analyst
All right. Very impressive results. And clearly open up space for potential dividends or share buybacks. So great. Thank you very much. I appreciate it. Good luck.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Carlos.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Carlos.
Operator
Our next question will come from Alex Hacking with Citi.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Yes. So I'll address the second one first, and that will give time to -- Roy can address the alumina market question, Alex. To put the asset sales in perspective, we committed to $500 million to $1 billion. We achieved over $800 million of proceeds between Gum Springs and Warrick. So we're going to put a big check mark besides the target of having $500 million to $1 billion. But as you alluded to, we still have Rockdale land down in Texas, roughly 30,000 acres where it's got a list price of $250 million. We're actively pursuing potential opportunities there. So very interested in getting that asset sold.
And on top of that, we have a group of people who look at really the assets around the periphery, some of our closed and curtailed assets to try to maximize value. So maybe, there is some smaller asset sales that are out there as potential. And then, you specifically mentioned the hydros down in Brazil. At this point, we're pretty happy with our hydro position in Brazil. So, we'll probably continue owning those at this point. So, Roy, do you want to address the aluminum market question?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Thanks, Bill. And I appreciate the question, Alex. Just a few quick points, and particularly looking at China, but also sort of looking a bit further afield as well. First from a short-term perspective, and I know we hit some of this in the presentation, we are seeing with increasing freight rates and the balance of pricing between China and the rest of the world. We're not seeing a large window of arbitrage opportunity for taking tons into China. So when you think about how those prices have been set and the fact that we've been relatively flat for these last months while the aluminum prices have been going up, it's really just the fact that we have both supply and demand relatively balanced.
And the good thing about the aluminum market is that you get a lot of transparency and you can see those transactions occurring. When you look out a bit and think about what will happen from the supply side, particularly inside of China, again, I think the supply side reforms in aluminum have been very well explained. I mean, we've seen a lot of enforcement in country as to what China has decided to do. There's always a possibility that they look to try and drive those same types of changes into alumina. But right now, there is really not any explanation of where that piece of the industry is going, so not a lot of clarity.
However, when you think about really two trends that I wanted to highlight. The first is the fact that you're getting more and more transparency about environmental issues and environmental management certainly around the world, but also inside of China. And so, when you think of the importance of how you manage and handle bauxite residue and it's one of the things that we put a lot of emphasis on to make sure that we're doing that with the best methodology across the business, you're seeing more and more transparency inside of China, and that means that it tends to ensure that the global competitiveness is its level of playing field as possible.
The other side is, and this will continue to be a big influence inside of the Chinese alumina industry. Because of the dwindling bauxite reserves, the fact is they're importing more and more bauxite. That creates the bauxite -- import bauxite industry, which as we do sell into. But more importantly, it tends to steepen the cost curve because now you're competing and most of our facilities, although not all are co-located very close to the reserve itself, the bauxite reserve itself. When you're importing, you then have that exposure both to freight rates, but also to just the cost of mining elsewhere and then importing it. So, it tends to be supportive of driving some steepness inside of that cost curve.
So when I look across that, China has become a very strong competitor and has grown its alumina business quite a bit. And it's I think something that offers us opportunities and also gives us a moment to see how we can ensure that our refineries are as competitive as they possibly can be and watch how that market continues in the future.
Alexander Hacking -- Citigroup -- Analyst
Thank you. It's very helpful color.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Alex.
Operator
Our next question comes from Lucas Pipes with B Riley Securities.
Lucas Pipes -- B Riley Securities -- Analyst
Hey, good afternoon, everyone. And I'd like to add my congratulations. One number that stood out to me, in particular, is the ROE of 18.5%. So, congratulations on that. And some of the questions we already had kind of touched on levers ways to continue to improve that metric. And I wanted to ask, maybe a little bit more open-ended that you've done a great job of optimized assets, you sold assets. From here on out, how do you continue to drive that figure higher? Thank you very much.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Lucas, thanks for the question. I appreciate that you noticed the 18.5%. One of the things about our company, as all of you know, we have a joint venture partnership in the bauxite and the alumina business. We also have a somewhat complex tax situation where we pay taxes in Australia, but in many places around the world with net operating losses that we have, we don't have to reserve for future taxes on profitability. That ends up resulting in a quarter like this, where you see strength in the earnings in the aluminum business really all falling to the bottom line. And so, in a marketplace where we're seeing metal prices greater than $2,300, our aluminum smelting business really shines and drives the profitability to the bottom line, and that's what you see in that ROE calculation.
Before I get to what's next and I'll actually let Roy address what's next, it shouldn't get lost in the first quarter results, the strength of the operations that we've had all through 2020 through the pandemic and into the first quarter of 2021. When you look at the bridge that I showed in the presentation, we're making the volumes that we need to make, and we're making cost improvements on top of that. And so, in a market that's got good strong tailwinds to be able to make the tons as stably, as predictably and as safely as we have been doing and also deliver on cost savings, just a tremendous amount of credit goes to our operations team and our operations around the world.
So, Roy, do you want to address some of the things that we would be looking at next?
Roy C. Harvey -- President and Chief Executive Officer
Yes. And you hit really what was going to be my first point, which is how strong the foundation that stability of operations can give us as we think about building on top of that and trying to drive what comes next from a -- really from a return standpoint. We have -- we try to take a pretty longer cycle view of how we approach our investments and also try and make sure that we can explain that very carefully, both internally, but also of course to our investors and externally. So we try to make sure that we're not simply reacting to the most recent developments in our market, but also trying to think a bit longer term. And I think it's particularly important given how much -- how many changes we're seeing in the market, not only when you look at some of the things we talked about with China over the course of this last -- over this last 40 minutes, but also when you think about this low-carbon evolution and the expectation for responsible production that we have embedded into the Alumina Stewardship Initiative and some other work that we are doing. So it offers a lot of opportunities.
And when you look across the portfolio and you think about how can we drive great returns across the product lines that we have -- you've got the ELYSIS partnership, which is developing, which I think is a great opportunity, although still a bit far out because it's in the midst of research and development. But also along the lines and across aluminum, when you look at some of the most competitive plants where you have real support both from a pricing standpoint and from a desire to have that industry and country, I think you still have creep opportunities in order to drive relatively small and modest projects, but will be able to drive further production and you build that on top of the stability and with a great center of excellence like we have in our aluminum group.
Alumina is another place where -- and Bill mentioned a little while ago, we've got medium-sized projects that we can bring to bear. Again, we need to have confidence that the market is going to support that. We need to make sure that the capital costs are as low as possible because it is a very competitive market out there, and we want to bring everything that we can from a center of excellence perspective, technological perspective, but then also make good use of the bauxite itself. But really good opportunities there. That again is a great way for us to be able to drive earnings. And in bauxite -- and I realize bauxite pricing has been a little bit weaker over the course of this last -- these last few months. But we have great reserves, we have a real opportunity in order to consider growing those mines if we find that we have the right customer and the right pricing environment and the right long-term certainty to be able to bring that to bear.
So it's -- there's a lot of ways that we can work to make this company better. I think you've seen a lot of those demonstrated through the work on our net debt position. You've seen it demonstrated in the fact that we can operate our plants stably. And again, that's work of everybody, but I think you're also going to see that we can be very disciplined in how we choose to deploy capital to make sure that we can actually drive value for our shareholders, and as one lever across all of the capital allocation levers that Bill had talked about as well.
Lucas Pipes -- B Riley Securities -- Analyst
I really appreciate the very detailed answer. Thank you. I have a quick follow-up on the value-add products and the opportunity there. It seems like pretty impressive growth. Can you share with us the spend capital in that segment, or is that really just a very strong manufacturing recovery that we're seeing with you adding more value-add products? And from here on out, what do you think is the growth potential for that product? Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Value-added wise, I think the improvements that you're seeing now really is the benefits of the return in our markets. And so, when you look across, and particularly, in Europe, North America, you are seeing a lot of demand returning. I mean, as vaccinations continue to be rolled out, as you see manufacturers get back and you've seen that downstream demand come into place. I think we're seeing just a lot of strength. And so from that perspective, it's really a matter of getting back to where we should be and really making good use of the facilities that are already in place.
When we look to the future, I mean that's, of course, going to depend a bit on how the recovery progresses. And I think we always need to be cognizant that there can be surprises in both directions, both positive and negative, but we can also consider how we try and creep forward value-added. There is always targeted investments that we can make. They tend to be very modest compared with the investments that we would put in, for example, in creeping a smelter or in driving new production in a refinery.
However, we need to -- we would need to make sure that we've got both the molten metal available in order to produce them or a scrap input if we were to choose to try and use some scrap or find a good business case to make sure that it would be sensible in order to drive more value-added. So it's certainly additional possibilities that sit inside of that and it's something that we continuously review. It's -- one of the benefits of our portfolio across the world is that we are in some very vibrant value-added product markets. Now, those have been a lot of changes over these last couple of years with some additional inputs, etc. And also with some of the programs 232 tariffs, etc. that you've seen that have altered some of those product flows. But we always try and look through that, and again, look for the long term, so that we can actually see a good positive outcome for any investment that we'd actually put into place.
Lucas Pipes -- B Riley Securities -- Analyst
Very helpful. Thank you.
Operator
Our next question will come from David Gagliano with BMO Capital Markets.
David Gagliano -- BMO Capital Markets -- Analyst
Hi. Thanks for taking my questions. A lot of them have already been covered. But I just -- I want to -- I'm just going to press a little bit on the capital return or capital allocation policy. Obviously, a lot of progress and great commentary regarding potential down the road, as well as the pre-funding of the pension already. So you know really the question is, at this point, it's been danced around a bit, but should equity shareholders expect dividends in 2021 at this point?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Dave, I don't think we're going to comment on whether they should expect dividends. What I would say is, given the current market situation I think we can get our targeted net-debt situation within our target range of the $2 billion to $2.5 billion. And after that, the goal will be to maintain it in that level and then allocate capital between the three other prongs of the capital allocation model.
David Gagliano -- BMO Capital Markets -- Analyst
All right. I thought I give it a try. All right. And then just on the additional business consideration. Obviously, you called out a lot of what looks like really kind of one-timers in the second quarter for higher seasonal maintenance and energy-related costs. As we think about the third quarter, are there any offsets to simply assuming that those just go away in the third quarter, all the ones that are called out as one-timers? Is there anything that we should be thinking about that some that's going to bleed into the third quarter?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Yeah. As you know, we'll give third-quarter guidance at the beginning of the third quarter. But I think the point you're making is a strong one, and that is the fact that we've tried to make it pretty clear that the $20 million of seasonal maintenance in the Alumina segment is truly the high point of maintenance in the year is in the second quarter. And that it rebounds -- declines in the third quarter. And the same on the $5 million in the Aluminum Smelting segment. We would typically see some maintenance in the second quarter, but we're anticipating that to go away in the third quarter. And obviously, the Warrick rolling mill sale, we lose those earnings because we've sold that asset. But if I would kind of summarize the second quarter, we do have some of these one-time items, but we do have some really strong market tailwinds behind us with metal price as high as it is, with Midwest premiums or regional premiums around the globe besides they are. And the value-add products business both from a volume side and pricing has been very strong. So our anticipation is that the second quarter should be a good quarter in [Indecipherable], but also we need to consider these items that we talked about here.
David Gagliano -- BMO Capital Markets -- Analyst
Understood. That's helpful. Thank you very much. Appreciate it.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Dave.
Operator
Our next question will come from John Tumazos with Very Independent Research.
John Tumazos -- Very Independent Research LLC -- Analyst
Thank you. Congratulations on the good times and the earnings.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, John.
John Tumazos -- Very Independent Research LLC -- Analyst
It's been a little while since the new smelter in Iceland and the participation in Saudi Arabia and the refinery and bauxite in Saudi Arabia and Juruti, bauxite in Brazil. Is there an appetite for a project. If it were a smelter would you be building a wind farm or would you be comparing solar and tax productivities in the Sinai Desert versus Arabia, the Sahara, the Kalahari, the Sonoran, West Texas and other deserts? Would you do a renewable smelter integrated into sun or wind?
Roy C. Harvey -- President and Chief Executive Officer
Yeah, John. So I'll take that one. And it's looking a bit forward into the future and I appreciate that. We as always, I would step and look to see how the markets are changing in order to imagine what that future looks like. We don't have any significant growth projects that are currently lined up. And when we do we'll certainly announce that to the broader world. That said, when you think about what the future and particularly in smelting is going to be, it is almost definitely going to be one that has a dedicated renewable power source. I don't think we as Alcoa would be imagining to do both power side and the smelter side, but I just don't see a non-renewable smelter coming into -- being on the table, either for us or for most of the industry.
And when you step back and also think about the revolutionary technology that's being developed in ELYSIS right now and again, there's still work that needs to be done in order to make that a viable option for the future. It's also I think a pretty exciting opportunity that we would always be evaluating before we chose to build that next new facility, to be quite honest. And again, just one step backward, as we always try and look across the market and think about how we see those trends developing, the advantage of ELYSIS is that it has operational cost improvements because you no longer need to have an anode facility. You have the opportunity to be more productive in the same footprint, but we're also trying to make sure that it is very competitive on a capital cost perspective. And really in the capital cost side is where you need to make sure that given the trends that are happening in the market, you're connected to a renewable power source that gives us the opportunity to you take advantage of the low carbon market. But if you were then to put in ELYSIS technology, it would make it the cleanest and greenest aluminum on the planet.
So to me, it's great, great places for us to be analyzing it for the future and I think it's going to be an exciting time. But right now, nothing to specifically announce.
John Tumazos -- Very Independent Research LLC -- Analyst
Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, John.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
John, if I could just add sense to that. One thing to keep in mind is that [Indecipherable] is going to be powered by wind in part in the future. So we've signed a series of wind contracts. So as you and I look back at the history of this industry over the last 10 or 20 years, who would have thought that a smelter would be wind-powered, but we will have a smelter that is in large part wind-powered going into the future.
Operator
Our next question comes from Timna Tanners with Bank of America.
Timna Tanners -- Bank of America Merrill Lynch -- Analyst
Hi, guys. Hope you're doing well.
Roy C. Harvey -- President and Chief Executive Officer
Thank you, Timna.
Timna Tanners -- Bank of America Merrill Lynch -- Analyst
Thanks. I want to ask two questions. One is just if you are in our shoes, how would you think about modeling green aluminum. Is it just a talking point or niche business? Is there a way to quantify that opportunity in your mind that you could guide us to?
And then my second question is just, do you think we're approaching any incentive pricing for restarts or new capacity when you add together the aluminum price and regional premiums or do you think that global costs have risen enough to where that's not in reach yet? Thanks.
Roy C. Harvey -- President and Chief Executive Officer
So let me take a first swing at the green aluminum point, and then maybe Bill can add his thoughts too. The way that we try to look at the green aluminum market it's -- and as you can imagine, it's just in the midst of growing. So it's hard to see exactly what it's going to look like. And so it's hard to develop what does that model look like. The fact is, is that one of the points we've been trying to make is that there should be a differentiation in levels of green aluminum rather than just fixing one particular point you -- I want to make sure that the market understands that when you look at the value chain coming up to aluminum, including bauxite and alumina, and how you choose to produce those products. But then also the direct emissions content inside of aluminum as well, which helps to make sure that as customers are thinking about the carbon content of their portfolios, they are thinking of that entire aluminum value chain. And for Alcoa, as you can imagine that's important to us.
How to model it? I think it's -- in my view, we're seeing those premiums start to develop today. I think because it's such a new market, they don't necessarily represent what that future can look like. And the more you can think about how you differentiate those products, the more potential and opportunity that lies inside of that green aluminum. And it needs to be connected with the broader expectations around cost of carbon and carbon taxes that might be built around the world. And so it's certainly not an easy modeling exercise at all. But again, I think one thing I would embed into it is the fact that not all aluminum companies are the same and not every green aluminum is going to be the same as well.
I don't know, Bill, if you would have any other thoughts about how to model it?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
No. I mean it's a small market at this point, right, Roy. And it's just starting to grow. I was just talking to some of the folks in our marketing group today and they're really starting to see a pull from specific customers, and it's just building now. Pull from specific -- I can speak, specific customers that really are starting to understand the possibilities of green aluminum and -- but it's a small market at this point, Timna.
Hey Timna, you asked about -- go ahead.
Roy C. Harvey -- President and Chief Executive Officer
No. I was just going to start on the incentive capacity and new capacity -- or really restarted capacity could come on line. I think, you're certainly seeing a stronger market today. You're starting to see some raw material inflation, but not a significant amount yet, although certainly that changes quarter-on-quarter. I look at our portfolio, which obviously is what we have inside of our control. Each of those smelters has its own set of gives and takes and challenges that might be there. And that would be the technology of the smelter in question, the availability of power, whether it is renewable power or the content in that power itself and how long of a runway that you can build for it because as you can imagine, bringing the plant back from a curtailed state can be expensive, and it can also take some time.
So, it's -- when Alcoa reviews it, it's not just about where pricing sits today, but really what are the basis for that price to continue. And more importantly, as you look through the cycle, and I wouldn't hazard to guess where we sit in the cycle today. When you look through that cycle, we want to make sure that that can be a competitive and profitable enterprise. But as you can imagine, we -- it's something that we continuously look at. We continuously look at to make sure that all of our plants are competitive in generating good profits in today's world, but we also look at the plans that we could bring back up again if we were to choose to.
Timna Tanners -- Bank of America Merrill Lynch -- Analyst
So you're saying you're not planning to bring anything back at these prices. Is that what I should take away from that comment?
Roy C. Harvey -- President and Chief Executive Officer
No. I think you should take away that we would analyze it. And when we make a decision to bring something back, we would absolutely tell you, Timna. I wasn't meaning to infer it in one direction or another.
Carlos De Alba -- Morgan Stanley -- Analyst
Okay. All right. Thanks, guys.
Operator
Our next question comes from Emily Chieng with Goldman Sachs.
Emily Chieng -- Goldman Sachs -- Analyst
Hey guys, congratulations on a great quarter. I wanted to touch a little bit on sort of the progress with the portfolio restructuring review here. We've certainly seen some updates on San Ciprian and Portland, but there's clearly still capacity under review. It sounds like from your last comments that the high metal price environment doesn't necessarily change any of this thinking and everything still under consideration heal. But when should we think about maybe sharing the next update in the sort of 3.5-year program to go?
Roy C. Harvey -- President and Chief Executive Officer
So I think you hit a lot of the most important points, Emily. It's a program that takes time because each of these facilities -- and look at the Portland is a good example. We've been working on Portland now for more than two years. And so as you think about trying to make structural change -- and as you know, we don't talk about those plans that we haven't announced, particularly part of the portfolio review. As you look at those changes, as you look at those step changes in the competitive cost structure, sometimes it can take time for that actually to happen. And it's not something we talk about in the market.
So Portland is now behind us. As you know, San Ciprian is in the midst of negotiations right now with the state-owned entity to see if we can do a divestiture of that plant. Outside of that, there's no particular timeline for when we would make different decisions about any of the other plants in the portfolio. We still have the expectation and have some tons remaining in that program, as you well know. We'll be announcing that when the time comes and when we actually see that we can take action on each of those facilities.
Emily Chieng -- Goldman Sachs -- Analyst
Great. That's helpful. And if I can squeeze one last question in. Just around the carbon pricing, I know you guys put a great slide out on that, but any early impacts or signs of that starting to flow through in your operations and how you might be thinking about sort of the aluminum outlook going forward?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. So right now, I think, on the product side, low-carbon products, you are starting to see some sales and you saw our first EcoSource sale, which is the alumina product and then also some sales and ECOLUM, etc. And so that has a positive impact on the product side. On carbon taxes and carbon prices and how they're impacting, I think there is indirect impact that happens inside of the aluminum pricing environment itself and perhaps even into the regional premiums, depending on what the different efforts might be there. So to me, because there's so much talk about carbon pricing and where this will take us in the knock-on impact on the industry, I think you can see those indirect impacts already inside of some of the pricing environment that we're experiencing today. I'm not sure that's a bit of a squishy answer, but I think that's the best I can do.
Emily Chieng -- Goldman Sachs -- Analyst
That is really helpful color. Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Emily.
Operator
Our next question comes from Michael Dudas with Vertical Research.
Michael Dudas -- Vertical Research Partners -- Analyst
Good evening. Thanks for taking the question. So Roy, just maybe a follow-up on Timna's thought on restarting capacity. There's been expectations from investors that have seen for years, aluminum supply would be a lot easier to bring on to the marketplace relative to say other nonferrous metals and such. But given what you talked about in China and the fact that this renewable power is probably going to be somewhat tight capacity given what the use of that is going to be around the world because everybody wants to decarbonize. Do you think that that growth curve has really flattened out quite a bit? Is it going to take a longer period of time for supply to catch up to whatever the demand growth is in this industry? Is that what we're starting to see emerge given the confluence of environmental, decarbon and some of the issues that you mentioned in China?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Michael, let me try and answer that and then give me some feedback if I'm missing the point. I think, in general, bringing facilities out of curtailment is a pretty difficult enterprise. It's costly. It requires significant negotiations in order to reopen your power contract or to find the way to -- outside of just the pricing environment, which can come and go, be quite honest, while we always assume it's going to be a positive future, I think you need to -- everyone would need to consider that.
And in the end, and as we look at it from an Alcoa perspective, we need to make sure that when you curtail a facility, there is a reason for it. And when you would think about bringing back on again, there would need to be a reason as well. And again, it takes time. It is risky in the sense that you need to have a lot of experience about how to restart those facilities. So I think it's actually pretty difficult from an Alcoa perspective, again, to make a decision in order to bring that facility up again.
That said, from -- and again, I look at it from how we approach our facilities. We look for opportunities in curtailed facilities to see if there is a way to address some of the underlying problems that might be there. Is there a power contract that can be renegotiated or are there enough impacts that are going to be taken? It just takes time. And again, I think it's -- we're very careful not just to look at today's prices, but really to look forward at least 12, 18 or more months because of the time it we take in order to pay back that investment.
Michael Dudas -- Vertical Research Partners -- Analyst
That's a fair answer, Roy. I appreciate that because it seems like others in the industry will probably be having those, if not even more difficult decisions relative to what -- how you guys have been able to run your business? Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Michael.
Operator
This concludes our question-and-answer session. And I'd like to turn the call back over to Roy Harvey for any closing remarks.
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Thank you. And I'd like to thank everyone once again for joining us today and for all of the really good questions. I'm proud of the work that all of my fellow Alcoans are accomplishing and I really am happy with how it has made our Company stronger. Today, we have an improved balance sheet, and we are even better positioned for the future. Our strategies are working in making Alcoa resilient through all market cycles. We will continue to focus on our values and on our priorities and we are well positioned for more sustainable world with materials and solutions that Alcoa can provide. I am truly excited for the possibilities.
Please be safe. And I look forward to talking to you in April for our second quarter results. Good night. And thank you, operator, for all the support.
Operator
[Operator Closing Remarks]
Duration: 70 minutes
Call participants:
James Dwyer -- Vice President of Investor Relations
Roy C. Harvey -- President and Chief Executive Officer
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Carlos De Alba -- Morgan Stanley -- Analyst
Alexander Hacking -- Citigroup -- Analyst
Lucas Pipes -- B Riley Securities -- Analyst
David Gagliano -- BMO Capital Markets -- Analyst
John Tumazos -- Very Independent Research LLC -- Analyst
Timna Tanners -- Bank of America Merrill Lynch -- Analyst
Emily Chieng -- Goldman Sachs -- Analyst
Michael Dudas -- Vertical Research Partners -- Analyst
More AA analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Corporation (NYSE: AA) Q1 2021 Earnings Call Apr 15, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation.
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Operator [Operator Closing Remarks] Duration: 70 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer Carlos De Alba -- Morgan Stanley -- Analyst Alexander Hacking -- Citigroup -- Analyst Lucas Pipes -- B Riley Securities -- Analyst David Gagliano -- BMO Capital Markets -- Analyst John Tumazos -- Very Independent Research LLC -- Analyst Timna Tanners -- Bank of America Merrill Lynch -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Michael Dudas -- Vertical Research Partners -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q1 2021 Earnings Call Apr 15, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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Operator [Operator Closing Remarks] Duration: 70 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer Carlos De Alba -- Morgan Stanley -- Analyst Alexander Hacking -- Citigroup -- Analyst Lucas Pipes -- B Riley Securities -- Analyst David Gagliano -- BMO Capital Markets -- Analyst John Tumazos -- Very Independent Research LLC -- Analyst Timna Tanners -- Bank of America Merrill Lynch -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Michael Dudas -- Vertical Research Partners -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q1 2021 Earnings Call Apr 15, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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Operator [Operator Closing Remarks] Duration: 70 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer Carlos De Alba -- Morgan Stanley -- Analyst Alexander Hacking -- Citigroup -- Analyst Lucas Pipes -- B Riley Securities -- Analyst David Gagliano -- BMO Capital Markets -- Analyst John Tumazos -- Very Independent Research LLC -- Analyst Timna Tanners -- Bank of America Merrill Lynch -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Michael Dudas -- Vertical Research Partners -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q1 2021 Earnings Call Apr 15, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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2021-04-15 00:00:00 UTC
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These 2 Earnings Reports Hold the Secret to the Stock Market's Future
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AA
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https://www.nasdaq.com/articles/these-2-earnings-reports-hold-the-secret-to-the-stock-markets-future-2021-04-15
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Thursday brought fresh new highs for most of the stock market, as the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 (SNPINDEX: ^GSPC) hit records and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell just shy of new all-time highs. Investors were excited about signs of a strong economic recovery as more of the U.S. emerges from the worst of the COVID-19 pandemic.
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+0.90%
+305
S&P 500
+1.11%
+46
Nasdaq Composite
+1.31%
+181
Data source: Yahoo! Finance.
Earnings season is getting into high gear, and investors heard the latest from two key companies in the industrial sector. Delta Air Lines (NYSE: DAL) started things off Thursday morning with the latest on how the airline industry is faring amid tough conditions, while after the closing bell, aluminum specialist Alcoa (NYSE: AA) weighed in with its latest results.
Losing a little altitude
Shares of Delta Air Lines finished lower by about 3% Thursday. The airline giant's first-quarter financial numbers were predictably ugly, and shareholders didn't seem to take as much solace from the prospects of improving conditions as many had hoped.
Revenue for 2021's first quarter was down 65% from pre-pandemic levels in 2019 and was off by more than half from the first quarter of 2020. Delta lost $2.9 billion on an adjusted pre-tax basis, excluding $1.2 billion received from the first extension of the federal government's payroll support program. Cash burn averaged $11 million per day during the period.
Image source: Delta Air Lines.
However, Delta saw some upbeat results later in the period. During March, cash flow went positive and passenger revenue improved by 50% compared to February levels. Moreover, CEO Ed Bastian is optimistic that the second quarter will see further improvement, especially as Delta anticipates taking away the current blocking of middle seating at the beginning of May.
Nevertheless, investors shouldn't assume things will get back to normal any time soon. Second-quarter projections still include anticipated revenue declines of 50% to 55% from its level two years ago, with massive reductions in scheduled capacity. As good a job as Delta has done, the magnitude of the disruptions to the airline industry has been huge, and it'll take time for things to get closer to normal.
Looking shiny
Shares of Alcoa were down about 2% in the regular trading session. However, they moved higher by more than 3% after hours, following Alcoa's release of first-quarter financials.
Alcoa saw what it called its best quarterly results since 2018, with strong execution despite the challenges of the COVID-19 pandemic. Revenue rose 20% and net income more than doubled from year-ago levels. Shipments of raw alumina material were up 7%, while refined aluminum shipments climbed 13% year over year.
Alcoa celebrated its continuing strategy to concentrate on its best prospects. It completed its sale of a metal rolling mill to Kaiser Aluminum at the end of March, raising valuable cash and retaining an interest in the nearby smelter facility. Alcoa will maintain a supply relationship with Kaiser going forward, ensuring future flows of raw materials.
Alcoa expects 2021 to be a good year, and investors have high hopes for favorable tailwinds from infrastructure spending and other economic support. The stock has already rebounded considerably from a year ago, but there's plenty more room for Alcoa to regain its former heights if the economy heats up from here.
Delta and Alcoa are both key indicators of economic strength across the business world. If they can perform well, then it could help keep the stock market climbing. If they lose ground, it could signal an end to the bull run we've seen lately.
10 stocks we like better than Delta Air Lines
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines (NYSE: DAL) started things off Thursday morning with the latest on how the airline industry is faring amid tough conditions, while after the closing bell, aluminum specialist Alcoa (NYSE: AA) weighed in with its latest results. The airline giant's first-quarter financial numbers were predictably ugly, and shareholders didn't seem to take as much solace from the prospects of improving conditions as many had hoped. Moreover, CEO Ed Bastian is optimistic that the second quarter will see further improvement, especially as Delta anticipates taking away the current blocking of middle seating at the beginning of May.
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Delta Air Lines (NYSE: DAL) started things off Thursday morning with the latest on how the airline industry is faring amid tough conditions, while after the closing bell, aluminum specialist Alcoa (NYSE: AA) weighed in with its latest results. During March, cash flow went positive and passenger revenue improved by 50% compared to February levels. Shipments of raw alumina material were up 7%, while refined aluminum shipments climbed 13% year over year.
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Delta Air Lines (NYSE: DAL) started things off Thursday morning with the latest on how the airline industry is faring amid tough conditions, while after the closing bell, aluminum specialist Alcoa (NYSE: AA) weighed in with its latest results. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Delta Air Lines wasn't one of them!
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Delta Air Lines (NYSE: DAL) started things off Thursday morning with the latest on how the airline industry is faring amid tough conditions, while after the closing bell, aluminum specialist Alcoa (NYSE: AA) weighed in with its latest results. Losing a little altitude Shares of Delta Air Lines finished lower by about 3% Thursday. Revenue for 2021's first quarter was down 65% from pre-pandemic levels in 2019 and was off by more than half from the first quarter of 2020.
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1058.0
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2021-04-14 00:00:00 UTC
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Why Alcoa, United States Steel, and Freeport-McMoRan Stocks Surged Today
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AA
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https://www.nasdaq.com/articles/why-alcoa-united-states-steel-and-freeport-mcmoran-stocks-surged-today-2021-04-14
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nan
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nan
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What happened
On a down day for the S&P 500 as a whole, metal production stocks fared better than most Wednesday, with shares of Alcoa (NYSE: AA) closing 6.9% higher, U.S. Steel (NYSE: X) rising 7.3%, and Freeport-McMoRan (NYSE: FCX) gaining 8%.
You can probably thank President Joe Biden for that.
Image source: Getty Images.
So what
The president, as you've probably heard, has proposed that Congress pass a $2 trillion infrastructure bill to rebuild the nation's roads and bridges, water supply systems, electric grid, and even telecommunications systems. And as The Boston Globe noted this week, getting this bill passed has become the Biden administration's singular focus. "Biden and the Senate have effectively cleared their plate for this single item from now until September, when the Senate, they hope, will try to pass it under the rules of a budget reconciliation process," the Globe reports.
Passage of the bill is not a sure thing. Although the Globe noted "polls suggest broad support for Biden's plan," support for the bill among Republicans in Congress seems tepid at best.
Now what
That being said, if the bill does pass, Recycling Today magazine predicted earlier this month that the massive projects being envisioned will "likely require hundreds of thousands of tons of steel, copper, aluminum and other basic materials."
Even those words may fail to capture the full size of this bill. The American Iron and Steel Institute predicts that for each $1 billion spent on infrastructure, American metals producers will need to put out "about 50,000 net tons of steel" -- to say nothing of the massive quantities of copper and aluminum that will be required.
Is that reason enough for shares of Alcoa, U.S. Steel, and Freeport-McMoRan to be surging today? I think it may be.
10 stocks we like better than United States Steel
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United States Steel wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened On a down day for the S&P 500 as a whole, metal production stocks fared better than most Wednesday, with shares of Alcoa (NYSE: AA) closing 6.9% higher, U.S. Steel (NYSE: X) rising 7.3%, and Freeport-McMoRan (NYSE: FCX) gaining 8%. And as The Boston Globe noted this week, getting this bill passed has become the Biden administration's singular focus. Now what That being said, if the bill does pass, Recycling Today magazine predicted earlier this month that the massive projects being envisioned will "likely require hundreds of thousands of tons of steel, copper, aluminum and other basic materials."
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What happened On a down day for the S&P 500 as a whole, metal production stocks fared better than most Wednesday, with shares of Alcoa (NYSE: AA) closing 6.9% higher, U.S. Steel (NYSE: X) rising 7.3%, and Freeport-McMoRan (NYSE: FCX) gaining 8%. Now what That being said, if the bill does pass, Recycling Today magazine predicted earlier this month that the massive projects being envisioned will "likely require hundreds of thousands of tons of steel, copper, aluminum and other basic materials." After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened On a down day for the S&P 500 as a whole, metal production stocks fared better than most Wednesday, with shares of Alcoa (NYSE: AA) closing 6.9% higher, U.S. Steel (NYSE: X) rising 7.3%, and Freeport-McMoRan (NYSE: FCX) gaining 8%. Now what That being said, if the bill does pass, Recycling Today magazine predicted earlier this month that the massive projects being envisioned will "likely require hundreds of thousands of tons of steel, copper, aluminum and other basic materials." 10 stocks we like better than United States Steel When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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What happened On a down day for the S&P 500 as a whole, metal production stocks fared better than most Wednesday, with shares of Alcoa (NYSE: AA) closing 6.9% higher, U.S. Steel (NYSE: X) rising 7.3%, and Freeport-McMoRan (NYSE: FCX) gaining 8%. And as The Boston Globe noted this week, getting this bill passed has become the Biden administration's singular focus. That's right -- they think these 10 stocks are even better buys.
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1059.0
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2021-04-14 00:00:00 UTC
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Noteworthy Wednesday Option Activity: PMT, CRWD, AA
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AA
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-pmt-crwd-aa-2021-04-14
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Pennymac Mortgage Investment Trust (Symbol: PMT), where a total volume of 6,795 contracts has been traded thus far today, a contract volume which is representative of approximately 679,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 82.5% of PMT's average daily trading volume over the past month, of 823,875 shares. Especially high volume was seen for the $17.50 strike call option expiring April 16, 2021, with 4,100 contracts trading so far today, representing approximately 410,000 underlying shares of PMT. Below is a chart showing PMT's trailing twelve month trading history, with the $17.50 strike highlighted in orange:
CrowdStrike Holdings Inc (Symbol: CRWD) options are showing a volume of 39,395 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 79.9% of CRWD's average daily trading volume over the past month, of 4.9 million shares. Particularly high volume was seen for the $180 strike put option expiring April 16, 2021, with 3,523 contracts trading so far today, representing approximately 352,300 underlying shares of CRWD. Below is a chart showing CRWD's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Alcoa Corporation (Symbol: AA) saw options trading volume of 47,660 contracts, representing approximately 4.8 million underlying shares or approximately 78% of AA's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike call option expiring April 16, 2021, with 17,247 contracts trading so far today, representing approximately 1.7 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange:
For the various different available expirations for PMT options, CRWD options, or AA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $35 strike call option expiring April 16, 2021, with 17,247 contracts trading so far today, representing approximately 1.7 million underlying shares of AA. Below is a chart showing CRWD's trailing twelve month trading history, with the $180 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 47,660 contracts, representing approximately 4.8 million underlying shares or approximately 78% of AA's average daily trading volume over the past month, of 6.1 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for PMT options, CRWD options, or AA options, visit StockOptionsChannel.com.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $180 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 47,660 contracts, representing approximately 4.8 million underlying shares or approximately 78% of AA's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike call option expiring April 16, 2021, with 17,247 contracts trading so far today, representing approximately 1.7 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for PMT options, CRWD options, or AA options, visit StockOptionsChannel.com.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $180 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 47,660 contracts, representing approximately 4.8 million underlying shares or approximately 78% of AA's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike call option expiring April 16, 2021, with 17,247 contracts trading so far today, representing approximately 1.7 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for PMT options, CRWD options, or AA options, visit StockOptionsChannel.com.
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Below is a chart showing CRWD's trailing twelve month trading history, with the $180 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 47,660 contracts, representing approximately 4.8 million underlying shares or approximately 78% of AA's average daily trading volume over the past month, of 6.1 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for PMT options, CRWD options, or AA options, visit StockOptionsChannel.com. Especially high volume was seen for the $35 strike call option expiring April 16, 2021, with 17,247 contracts trading so far today, representing approximately 1.7 million underlying shares of AA.
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1060.0
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2021-04-11 00:00:00 UTC
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Weekly Preview: Earnings to Watch This Week (AA, PEP, JPM, WFC)
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AA
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https://www.nasdaq.com/articles/weekly-preview%3A-earnings-to-watch-this-week-aa-pep-jpm-wfc-2021-04-11
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nan
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nan
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T
he first quarter earnings season kicks off this coming week. With stocks trading at all-time highs, it’s safe to say the tenor for risk assets is extremely optimistic. And it’s not hard to understand why.
On Friday, the Dow Jones Industrial Average rose 297.03 points, or 0.89%, to close at 33,800.60. Strong performances in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped offset weakness in Boeing (BA) and Disney (DIS). The S&P 500 index SPX rose 31.63 points, or 0.77%, to end the session at 4,128.80, while the Nasdaq Composite gained 0.51%, adding 70.88 points to finish at 13,900.19. The fact that the Nasdaq rose despite declines in tech giants Tesla (TSLA), Peloton (PTON) and Zoom Video (ZM), among others, was notable.
Nevertheless, the three main averages finished the week in positive territory and continue their march higher despite persistent concerns about not only rising bond yields, but also a fear of weakened global economic recovery. When evaluating stocks, investors are assessing the risk-versus-reward potential in relation to the pace of re-opening. Aside from widespread vaccinations across the country, which some analysts forecast will lead to a surge in economic growth, investors are already banking on the $2 trillion infrastructure spending plan proposed by the Biden administration.
These catalysts are factored into the the growth expectations not only for the first quarter, but also for the second quarter as well. Ethan Harris, Bank of America’s head of global economic research, expects Q2 to deliver 10% economic growth. The question is, is all of the good news already priced in to stocks? The market will get that answer once CEOs start issuing 2021 guidance, which will presumably be more optimistic than last year, when guidance was (understandably) pulled, with many CEOs citing poor visibility in the wake of the pandemic's outbreak.
However, CEOs being conservative with their guidance won’t work this time around, particularly as many industries are preparing for the reopening of the U.S. economy. The median GDP growth forecast for second quarter is 9.3%, compared to 5.8% rise in the first quarter. Not only does the market fully expect companies to issue guidance this time around, but stock prices suggests investors are betting that said guidance will be raised, particularly in industries that were most-impacted by the pandemic.
The question that keeps coming up, are investors’ growth expectations and optimism surrounding the economic growth well placed? Even if they are, while analysts aren’t ready to proclaim stocks are cheap, it will nonetheless take impressive revenue and earnings beats and the aforementioned confidence guidance to keeps the momentum going.
As we kick off the new earnings season, here are this week’s names that will set the tone for what’s to come in the weeks ahead.
JPMorgan Chase (JPM) - Reports before the open, Wednesday, Apr. 14
Wall Street expects JPMorgan to earn $3.06 per share on revenue of $30.42 billion. This compares to the year-ago quarter when earnings came to 78 cents per share on revenue of $29.07 billion.
What to watch: Without question, JPMorgan has established a well-deserved reputation as being the best-executing bank not only among its peer group, but one of the best-run banks in the world. Driven by its ongoing investments in areas like technology, marketing, the bank’s share price has outperformed its competitors over the past six months and twelve months. And given its organic expansion initiatives to develop new branches/loan offices, these growth trends are poised to continue. But with the stock trading some 12% higher than pre-pandemic levels, all of this good news I’ve just listed are known by the market evidenced by 22% year to date rise in JPMorgan stock, compared to 9% rise in the S&P 500 index. What additional catalysts, whether near term or long term, will drive the share price higher, particularly in the low-interest rate environment? That is the answer the market will listen for on Wednesday.
Wells Fargo (WFC) - Reports before the open, Wednesday, Apr. 14
Wall Street expects Wells Fargo to earn 68 cents per share on revenue of $17.46 billion. This compares to the year-ago quarter when earnings came to 1 cent per share on revenue of $17.72 billion.
What to watch: Wells Fargo stock has been a hot commodity among the banks, skyrocketing more than 60% over the past six months. With the stock now up 32% year to date, besting the 9% rise in the S&P 500 index, the market appears willing to look beyond some of the bank’s legacy issues and certainly some near-term headwinds. While there are still plenty of challenges for Wells Fargo, including the fact that it has to balance much-needed cost cuts with revenue/business growth, the bank has nonetheless executed as well as anyone might have expected. Last quarter, not only were the bank’s charge-offs and core provisioning both better than expected, Wells Fargo’s adjusted expenses were also lower, helping to deliver a 12% beat on the bottom line. Notably, this is with revenue generation still under pressure by both the weaker rate environment and the adjustments Wells Fargo has had to make to stay in compliance with the asset cap. As it stands, the bank now has tons of catalysts to sustain profitability and return value to shareholders.
PepsiCo (PEP) - Reports before the open, Thursday, Apr. 15
Wall Street expects PepsiCo to deliver EPS of $1.12 per share on revenue of $14.54 billion. This compares to the year-ago quarter when earnings were $1.07 per share on $13.88 billion in revenue.
What to watch: The snack and beverage giant has seen its stock price surge almost 10% over the past thirty days. But even with the recent rise, the stock is still down about 4% year to date, training the 9% rise in the S&P 500 index. Notably, Pepsi has underperformed despite reporting not only rapid organic sales growth, but also strong free cash flow in 2020 amid the pandemic. During which, Pepsi (at various times) has been impacted due to the lockdown restrictions and the effect this has had on the restaurant industry that Pepsi supplies beverage to. Meanwhile, the company is investing in new brands and adapting to new trends which has begun to pay dividends evidenced by the 5.7% rise in organic revenue growth in the last quarter. Unit volume was also strong, up 3% for food/snacks, while rising 5% for beverages. The company still believes that there is plenty of room for growth in its core snacks and beverages business. On Thursday it will need to demonstrate that growth.
Alcoa (AA) - Reports after the close, Thursday, Apr. 15
Wall Street expects Alcoa to earn 46 cents per share on revenue of $2.65 billion. This compares to the year-ago quarter when it posted a loss of 23 cents per share on revenue of $2.38 billion.
What to watch: Shares of the aluminum giant have been one of the bright spots in the materials sector, rising almost 10.5% over the past month and is now up 36% year to date, besting the 19% rise in the SPDR S&P Metals & Mining ETF (XME). The rise in metal stocks have been driven by optimism surrounding the Biden administration’s $2 trillion infrastructure spending plan that is aimed at boost repairing the country’s roads and bridges, among other projects. How much of that money will come to Alcoa? The company last quarter posted its tenth consecutive quarterly profit beat, thanks to improving aluminum business. While there appears to be support for higher aluminum prices, the company on Thursday must speak positively about the demand/supply outlook for the next several quarters to keep Alcoa stock in high demand as it has been.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Strong performances in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped offset weakness in Boeing (BA) and Disney (DIS). Alcoa (AA) - Reports after the close, Thursday, Apr. Nevertheless, the three main averages finished the week in positive territory and continue their march higher despite persistent concerns about not only rising bond yields, but also a fear of weakened global economic recovery.
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Strong performances in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped offset weakness in Boeing (BA) and Disney (DIS). Alcoa (AA) - Reports after the close, Thursday, Apr. Aside from widespread vaccinations across the country, which some analysts forecast will lead to a surge in economic growth, investors are already banking on the $2 trillion infrastructure spending plan proposed by the Biden administration.
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Strong performances in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped offset weakness in Boeing (BA) and Disney (DIS). Alcoa (AA) - Reports after the close, Thursday, Apr. Not only does the market fully expect companies to issue guidance this time around, but stock prices suggests investors are betting that said guidance will be raised, particularly in industries that were most-impacted by the pandemic.
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Alcoa (AA) - Reports after the close, Thursday, Apr. Strong performances in Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Intel (INTC) helped offset weakness in Boeing (BA) and Disney (DIS). These catalysts are factored into the the growth expectations not only for the first quarter, but also for the second quarter as well.
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1061.0
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2021-04-09 00:00:00 UTC
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Select Sector SPDR’s U.S. Market Weekly Summary – April 9, 2021
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AA
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https://www.nasdaq.com/articles/select-sector-spdrs-u.s.-market-weekly-summary-april-9-2021-2021-04-09
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nan
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nan
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The S&P 500 index rose 2.7% this week to new record highs as the technology, consumer discretionary, and communication services sectors led a broad climb.
The market benchmark ended the week at 4,128.80, up from its closing level of 4,019.87 last Thursday, the last trading day last week due to the market being closed last Friday for the Good Friday holiday. Friday's closing level marked the S&P 500's highest close ever. It also set a fresh intraday record Friday at 4,129.48.
The gains came as Federal Open Market Committee minutes released this week from the policy-setting committee's March 16-17 meeting showed agreement among members that it "would likely be some time until substantial further progress toward the Committee's maximum-employment and price-stability goals would be realized," adding that asset purchases "would continue at least at the current pace until then."
Investor sentiment also improved as JPMorgan (JPM) Chief Executive Jamie Dimon said in a letter to shareholders he sees an economic "Goldilocks moment" ahead and expects an economic boom through 2023 thanks to excess savings, new stimulus savings, deficit spending, and successful COVID-19 vaccines, among other factors.
Progress continued to be made this week in vaccine distributions, although newly reported COVID-19 cases in the US also rose amid spreading variants. Nearly 20% of the total US population has been fully vaccinated so far, while almost 34% have had at least one dose.
The weekly advance in US stocks was broad, with all but one sector posting weekly gains. The technology sector recorded the largest percentage increase, up 4.7%, following by a 4.2% climb in consumer discretionary and a 3.2% rise in communication services. The lone declining sector was energy, down 4%.
The technology sector's gainers included Mastercard (MA), up 4.6% on the week, as the US-based payment technology company said worldwide online retail sales increased by $900 billion in 2020. The company also reported US retail sales excluding automotive and gasoline increased 26% year over year in March while online sales jumped 57%. Mastercard plans to release Q1 results on April 29.
Among consumer discretionary stocks, Norwegian Cruise Line (NCLH) shares climbed 10%. The cruise operator said it plans to resume cruises from the US in July and has asked the US Centers for Disease Control & Prevention to lift the conditional sail order. The company plans to resume cruises outside the US with cruises in Greece in late July.
In communication services, Twitter (TWTR) shares jumped 12%. A Bloomberg News report said Twitter has held deal talks with audio-based social network Clubhouse in recent months. Still, the discussions are no longer ongoing, according to unnamed people familiar with the matter.
On the downside, the energy sector's drop came as crude oil futures slid. The decliners included Occidental Petroleum (OXY), whose shares fell 10% on the week amid a regulatory filing showing activist investor Carl Icahn sold 7 million shares of the company for $25.60 each, totaling about $180 million.
Next week marks the Q1 earnings reporting season's unofficial kickoff, with big banks JPMorgan Chase, Wells Fargo (WFC), and Goldman Sachs (GS) expected to release results Wednesday. Bank of America (BAC), Alcoa (AA), and PepsiCo (PEP) are among the companies expected to report Thursday, followed by Morgan Stanley (MS) on Friday.
As for economic data, next week's calendar features the March consumer price index on Tuesday, March retail sales on Thursday, and March building permits and housing starts, as well as April consumer sentiment on Friday.
For more information, visit www.sectorspdr.com.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bank of America (BAC), Alcoa (AA), and PepsiCo (PEP) are among the companies expected to report Thursday, followed by Morgan Stanley (MS) on Friday. The S&P 500 index rose 2.7% this week to new record highs as the technology, consumer discretionary, and communication services sectors led a broad climb. Next week marks the Q1 earnings reporting season's unofficial kickoff, with big banks JPMorgan Chase, Wells Fargo (WFC), and Goldman Sachs (GS) expected to release results Wednesday.
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Bank of America (BAC), Alcoa (AA), and PepsiCo (PEP) are among the companies expected to report Thursday, followed by Morgan Stanley (MS) on Friday. The S&P 500 index rose 2.7% this week to new record highs as the technology, consumer discretionary, and communication services sectors led a broad climb. The company also reported US retail sales excluding automotive and gasoline increased 26% year over year in March while online sales jumped 57%.
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Bank of America (BAC), Alcoa (AA), and PepsiCo (PEP) are among the companies expected to report Thursday, followed by Morgan Stanley (MS) on Friday. The S&P 500 index rose 2.7% this week to new record highs as the technology, consumer discretionary, and communication services sectors led a broad climb. The market benchmark ended the week at 4,128.80, up from its closing level of 4,019.87 last Thursday, the last trading day last week due to the market being closed last Friday for the Good Friday holiday.
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Bank of America (BAC), Alcoa (AA), and PepsiCo (PEP) are among the companies expected to report Thursday, followed by Morgan Stanley (MS) on Friday. The S&P 500 index rose 2.7% this week to new record highs as the technology, consumer discretionary, and communication services sectors led a broad climb. Among consumer discretionary stocks, Norwegian Cruise Line (NCLH) shares climbed 10%.
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1062.0
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2021-04-08 00:00:00 UTC
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Interesting AA Put And Call Options For May 28th
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AA
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https://www.nasdaq.com/articles/interesting-aa-put-and-call-options-for-may-28th-2021-04-08
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $30.00 strike price has a current bid of $2.13. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $30.00, but will also collect the premium, putting the cost basis of the shares at $27.87 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $30.59/share today.
Because the $30.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.10% return on the cash commitment, or 51.83% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $30.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $31.50 strike price has a current bid of $1.86. If an investor was to purchase shares of AA stock at the current price level of $30.59/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $31.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.06% if the stock gets called away at the May 28th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $31.50 strike highlighted in red:
Considering the fact that the $31.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.08% boost of extra return to the investor, or 44.39% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 70%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $30.59) to be 69%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $31.50 strike highlighted in red: Considering the fact that the $31.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 28th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $31.50 strike highlighted in red: Considering the fact that the $31.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 28th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $31.50 strike highlighted in red: Considering the fact that the $31.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 28th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 28th contracts and identified one put and one call contract of particular interest. Below is a chart showing AA's trailing twelve month trading history, with the $31.50 strike highlighted in red: Considering the fact that the $31.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 28th expiration.
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1063.0
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2021-04-06 00:00:00 UTC
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What Kind Of Shareholders Hold The Majority In Alcoa Corporation's (NYSE:AA) Shares?
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AA
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https://www.nasdaq.com/articles/what-kind-of-shareholders-hold-the-majority-in-alcoa-corporations-nyse%3Aaa-shares-2021-04
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A look at the shareholders of Alcoa Corporation (NYSE:AA) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$6.0b, Alcoa is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Alcoa.
NYSE:AA Ownership Breakdown April 6th 2021
What Does The Institutional Ownership Tell Us About Alcoa?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Alcoa already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Alcoa's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:AA Earnings and Revenue Growth April 6th 2021
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Alcoa. The Vanguard Group, Inc. is currently the largest shareholder, with 8.8% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.5% and 4.9%, of the shares outstanding, respectively.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 15 shareholders, meaning that no single shareholder has a majority interest in the ownership.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Alcoa
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Alcoa Corporation insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around US$19m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 20% ownership, the general public have some degree of sway over Alcoa. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Alcoa better, we need to consider many other factors. For instance, we've identified 2 warning signs for Alcoa that you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:AA Earnings and Revenue Growth April 6th 2021 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. A look at the shareholders of Alcoa Corporation (NYSE:AA) can tell us which group is most powerful. NYSE:AA Ownership Breakdown April 6th 2021 What Does The Institutional Ownership Tell Us About Alcoa?
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A look at the shareholders of Alcoa Corporation (NYSE:AA) can tell us which group is most powerful. NYSE:AA Earnings and Revenue Growth April 6th 2021 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. NYSE:AA Ownership Breakdown April 6th 2021 What Does The Institutional Ownership Tell Us About Alcoa?
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A look at the shareholders of Alcoa Corporation (NYSE:AA) can tell us which group is most powerful. NYSE:AA Ownership Breakdown April 6th 2021 What Does The Institutional Ownership Tell Us About Alcoa? NYSE:AA Earnings and Revenue Growth April 6th 2021 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions.
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NYSE:AA Earnings and Revenue Growth April 6th 2021 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. A look at the shareholders of Alcoa Corporation (NYSE:AA) can tell us which group is most powerful. NYSE:AA Ownership Breakdown April 6th 2021 What Does The Institutional Ownership Tell Us About Alcoa?
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1064.0
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2021-04-05 00:00:00 UTC
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This 1 Thing Will Make or Break the Stock Market Rally
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AA
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https://www.nasdaq.com/articles/this-1-thing-will-make-or-break-the-stock-market-rally-2021-04-05
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nan
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The stock market continued its upward momentum on Monday, following through on a solid start to April last week with further gains. Both the S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) hit new records. The Nasdaq Composite (NASDAQINDEX: ^IXIC) was still clawing back the ground it had lost earlier this year, but its advance was the largest of the three major indexes.
INDEX
PERCENTAGE CHANGE
POINT CHANGE
Dow
+1.13%
+374
S&P 500
+1.44%
+58
Nasdaq Composite
+1.67%
+225
Data source: Yahoo! Finance.
Investors have been extremely optimistic about the prospects for a full economic recovery after 2020's coronavirus-plagued recession. Yet even as economic data starts to support the likelihood of a rebound, there's one thing that looms large on the horizon for investors.
In the next couple of weeks, earnings season will give investors their first real read on how things are going in 2021. Although no one expects those results to reflect a full recovery, they nevertheless will set the tone and decide whether investors have gotten ahead of themselves. What key businesses report could determine whether the stock market will keep rising from here.
All eyes will be on big banks
The first set of companies that will get attention for their first-quarter 2021 results will be major financial institutions. JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and Goldman Sachs (NYSE: GS) are expected to report on April 14. Bank of America (NYSE: BAC), Citigroup (NYSE: C), and U.S. Bancorp (NYSE: USB) will follow on April 15.
Investors are generally upbeat about big banks being able to mount a full recovery from the first quarter of 2020, which included massive loss provisions related to the pandemic. For instance, JPMorgan's earnings could more than triple from year-ago levels. Goldman and Citigroup will likely see earnings double, and substantial gains are likely for the other banks as well.
Image source: Getty Images.
More importantly, investors will get a sense of how much major banks intend to return to their shareholders through dividends and stock buybacks. Those efforts have been ongoing since the financial crisis, but they were put on pause because of the financial stresses of the pandemic. If the news from Wall Street's finest proves favorable, then it could spur a further rally in financial stocks that could lead the whole market higher. If they disappoint, though, the banks could be the catalyst for a stock market pullback.
A look at industrial America
The other key area will be the industrial sector. Alcoa (NYSE: AA) will report on April 15, while Delta Air Lines (NYSE: DAL) leads off the airlines on the same day. Most of Delta's rivals will report the following week.
Alcoa has already seen an uptick in interest from investors as demand for aluminum has been on the rise. After years of supply imbalances related to Chinese production and consumption of the lightweight metal, market watchers are increasingly optimistic that aluminum could be an even more important commodity than copper in the economic recovery worldwide. Alcoa's emphasis is purely on commoditized aluminum, so it stands to benefit from continued rebounds in use of the metal for electric vehicles, aerospace, and other weight-sensitive industries.
Delta's business is one of those areas, and investors expect more bad news from the airline for the first quarter. What shareholders will want to see, though, are signs of more passengers returning to the skies. Deliver that, and Delta could see its stock continue to rise. If the outlook is cloudy, however, it could prove problematic for Delta and its peers.
Stay tuned
Earnings season is about to start, and smart investors will be paying attention. What key companies like big banks, airlines, and industrial giants say could determine the course of the stock market for the rest of 2021 and beyond.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa (NYSE: AA) will report on April 15, while Delta Air Lines (NYSE: DAL) leads off the airlines on the same day. Investors are generally upbeat about big banks being able to mount a full recovery from the first quarter of 2020, which included massive loss provisions related to the pandemic. After years of supply imbalances related to Chinese production and consumption of the lightweight metal, market watchers are increasingly optimistic that aluminum could be an even more important commodity than copper in the economic recovery worldwide.
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Alcoa (NYSE: AA) will report on April 15, while Delta Air Lines (NYSE: DAL) leads off the airlines on the same day. JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and Goldman Sachs (NYSE: GS) are expected to report on April 14. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Alcoa (NYSE: AA) will report on April 15, while Delta Air Lines (NYSE: DAL) leads off the airlines on the same day. More importantly, investors will get a sense of how much major banks intend to return to their shareholders through dividends and stock buybacks. What key companies like big banks, airlines, and industrial giants say could determine the course of the stock market for the rest of 2021 and beyond.
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Alcoa (NYSE: AA) will report on April 15, while Delta Air Lines (NYSE: DAL) leads off the airlines on the same day. Most of Delta's rivals will report the following week. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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1065.0
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2021-04-01 00:00:00 UTC
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Alcoa Completes Sale Of Rolling Mill, Associated Assets Near Evansville
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AA
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https://www.nasdaq.com/articles/alcoa-completes-sale-of-rolling-mill-associated-assets-near-evansville-2021-04-01
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(RTTNews) - Alcoa Corporation (AA) has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. Alcoa received total consideration of approximately $670 million, including the assumption by Kaiser of related other postretirement employee benefit liabilities. The sale closed on March 31, 2021.
Alcoa noted that it retains ownership of the 269,000 metric tons of smelting capacity at the Warrick smelter, the Warrick electric generating units, and land holdings in Warrick County, Indiana.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corporation (AA) has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. Alcoa received total consideration of approximately $670 million, including the assumption by Kaiser of related other postretirement employee benefit liabilities. Alcoa noted that it retains ownership of the 269,000 metric tons of smelting capacity at the Warrick smelter, the Warrick electric generating units, and land holdings in Warrick County, Indiana.
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(RTTNews) - Alcoa Corporation (AA) has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. Alcoa noted that it retains ownership of the 269,000 metric tons of smelting capacity at the Warrick smelter, the Warrick electric generating units, and land holdings in Warrick County, Indiana. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corporation (AA) has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. Alcoa noted that it retains ownership of the 269,000 metric tons of smelting capacity at the Warrick smelter, the Warrick electric generating units, and land holdings in Warrick County, Indiana. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corporation (AA) has completed the sale of the rolling mill and associated assets near Evansville, Indiana, held by Alcoa Warrick LLC, to Kaiser Aluminum Corporation. Alcoa received total consideration of approximately $670 million, including the assumption by Kaiser of related other postretirement employee benefit liabilities. The sale closed on March 31, 2021.
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1066.0
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2021-03-30 00:00:00 UTC
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EU imposes tariffs on Chinese aluminium producers
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AA
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https://www.nasdaq.com/articles/eu-imposes-tariffs-on-chinese-aluminium-producers-2021-03-30
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BRUSSELS, March 30 (Reuters) - The European Union has imposed duties on aluminium products imported from China after an investigation showed that they were being sold at unfairly low prices, the EU official journal said on Tuesday.
The European Commission, which oversees trade policy for the 27-nation European Union, has set anti-dumping duties of between 21.2% and 31.2% on Chinese producers of aluminium extrusions in the form of bars, rods, profiles or tubes.
The tariffs are lower than the provisional duties of 30.4% to 48.0% imposed midway through the investigation.
The Commission opened an investigation in February 2020 into the products widely used in transport, construction and electronics after a complaint from industry body European Aluminium.
Members of European Aluminium include Norsk Hydro NHY.OL, Rio Tinto RIO.L, RIO.AX and Alcoa AA.N.
Duties of 21.2% are imposed for Guangdong Haomei New Materials Co Ltd 002988.SZ and Guangdong King Metal Light Alloy Technology Co Ltd, while Press Metal International Ltd will see duties of 25.0%.
Other "cooperating" companies would face duties of 22.1% and material from all other companies would see charges of 32.1%.
China's metals association had previously called the complaint groundless.
(Reporting by Philip Blenkinsop; Editing by Susan Fenton)
((philip.blenkinsop@thomsonreuters.com; +32 2 585 2869; Reuters Messaging: philip.blenkinsop.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Members of European Aluminium include Norsk Hydro NHY.OL, Rio Tinto RIO.L, RIO.AX and Alcoa AA.N. BRUSSELS, March 30 (Reuters) - The European Union has imposed duties on aluminium products imported from China after an investigation showed that they were being sold at unfairly low prices, the EU official journal said on Tuesday. The Commission opened an investigation in February 2020 into the products widely used in transport, construction and electronics after a complaint from industry body European Aluminium.
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Members of European Aluminium include Norsk Hydro NHY.OL, Rio Tinto RIO.L, RIO.AX and Alcoa AA.N. BRUSSELS, March 30 (Reuters) - The European Union has imposed duties on aluminium products imported from China after an investigation showed that they were being sold at unfairly low prices, the EU official journal said on Tuesday. The European Commission, which oversees trade policy for the 27-nation European Union, has set anti-dumping duties of between 21.2% and 31.2% on Chinese producers of aluminium extrusions in the form of bars, rods, profiles or tubes.
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Members of European Aluminium include Norsk Hydro NHY.OL, Rio Tinto RIO.L, RIO.AX and Alcoa AA.N. BRUSSELS, March 30 (Reuters) - The European Union has imposed duties on aluminium products imported from China after an investigation showed that they were being sold at unfairly low prices, the EU official journal said on Tuesday. The European Commission, which oversees trade policy for the 27-nation European Union, has set anti-dumping duties of between 21.2% and 31.2% on Chinese producers of aluminium extrusions in the form of bars, rods, profiles or tubes.
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Members of European Aluminium include Norsk Hydro NHY.OL, Rio Tinto RIO.L, RIO.AX and Alcoa AA.N. BRUSSELS, March 30 (Reuters) - The European Union has imposed duties on aluminium products imported from China after an investigation showed that they were being sold at unfairly low prices, the EU official journal said on Tuesday. The European Commission, which oversees trade policy for the 27-nation European Union, has set anti-dumping duties of between 21.2% and 31.2% on Chinese producers of aluminium extrusions in the form of bars, rods, profiles or tubes.
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1067.0
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2021-03-26 00:00:00 UTC
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Notable Friday Option Activity: DISCA, AA, CODX
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AA
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-disca-aa-codx-2021-03-26
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Discovery Inc - Series A (Symbol: DISCA), where a total of 66,153 contracts have traded so far, representing approximately 6.6 million underlying shares. That amounts to about 57.8% of DISCA's average daily trading volume over the past month of 11.4 million shares. Especially high volume was seen for the $50 strike call option expiring April 16, 2021, with 6,721 contracts trading so far today, representing approximately 672,100 underlying shares of DISCA. Below is a chart showing DISCA's trailing twelve month trading history, with the $50 strike highlighted in orange:
Alcoa Corporation (Symbol: AA) saw options trading volume of 39,608 contracts, representing approximately 4.0 million underlying shares or approximately 54.5% of AA's average daily trading volume over the past month, of 7.3 million shares. Especially high volume was seen for the $32 strike call option expiring April 01, 2021, with 2,992 contracts trading so far today, representing approximately 299,200 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $32 strike highlighted in orange:
And Co-Diagnostics Inc (Symbol: CODX) saw options trading volume of 5,647 contracts, representing approximately 564,700 underlying shares or approximately 53.5% of CODX's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $10 strike put option expiring March 26, 2021, with 350 contracts trading so far today, representing approximately 35,000 underlying shares of CODX. Below is a chart showing CODX's trailing twelve month trading history, with the $10 strike highlighted in orange:
For the various different available expirations for DISCA options, AA options, or CODX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $32 strike call option expiring April 01, 2021, with 2,992 contracts trading so far today, representing approximately 299,200 underlying shares of AA. Below is a chart showing DISCA's trailing twelve month trading history, with the $50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 39,608 contracts, representing approximately 4.0 million underlying shares or approximately 54.5% of AA's average daily trading volume over the past month, of 7.3 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $32 strike highlighted in orange: And Co-Diagnostics Inc (Symbol: CODX) saw options trading volume of 5,647 contracts, representing approximately 564,700 underlying shares or approximately 53.5% of CODX's average daily trading volume over the past month, of 1.1 million shares.
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Below is a chart showing DISCA's trailing twelve month trading history, with the $50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 39,608 contracts, representing approximately 4.0 million underlying shares or approximately 54.5% of AA's average daily trading volume over the past month, of 7.3 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $32 strike highlighted in orange: And Co-Diagnostics Inc (Symbol: CODX) saw options trading volume of 5,647 contracts, representing approximately 564,700 underlying shares or approximately 53.5% of CODX's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $32 strike call option expiring April 01, 2021, with 2,992 contracts trading so far today, representing approximately 299,200 underlying shares of AA.
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Below is a chart showing DISCA's trailing twelve month trading history, with the $50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 39,608 contracts, representing approximately 4.0 million underlying shares or approximately 54.5% of AA's average daily trading volume over the past month, of 7.3 million shares. Below is a chart showing AA's trailing twelve month trading history, with the $32 strike highlighted in orange: And Co-Diagnostics Inc (Symbol: CODX) saw options trading volume of 5,647 contracts, representing approximately 564,700 underlying shares or approximately 53.5% of CODX's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $32 strike call option expiring April 01, 2021, with 2,992 contracts trading so far today, representing approximately 299,200 underlying shares of AA.
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Below is a chart showing DISCA's trailing twelve month trading history, with the $50 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 39,608 contracts, representing approximately 4.0 million underlying shares or approximately 54.5% of AA's average daily trading volume over the past month, of 7.3 million shares. Especially high volume was seen for the $32 strike call option expiring April 01, 2021, with 2,992 contracts trading so far today, representing approximately 299,200 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $32 strike highlighted in orange: And Co-Diagnostics Inc (Symbol: CODX) saw options trading volume of 5,647 contracts, representing approximately 564,700 underlying shares or approximately 53.5% of CODX's average daily trading volume over the past month, of 1.1 million shares.
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1068.0
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2021-03-26 00:00:00 UTC
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3 Booming Metal Stocks to Buy for the Infrastructure Bill
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AA
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https://www.nasdaq.com/articles/3-booming-metal-stocks-to-buy-for-the-infrastructure-bill-2021-03-26
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The bullish sentiment in metal stocks has been growing alongside their prices for months. Hopes of an economic boom and a mammoth infrastructure bill give buyers all the reason needed to swarm. I’ve scoured the industry for the best stocks to buy, and today I’m sharing my findings.
The reopening theme isn’t new. It’s been buoying stocks across the land since November when Pfizer (NYSE:PFE) announced its hyper-effective vaccine. But just because the narrative’s novelty is wearing off doesn’t mean its effects are. A torrent of pent-up demand fueled by historic stimulus will be unleashed on the economy over the next few years.
7 Risky Stocks Ready to Roll on Reopening
And then, there’s the multitrillion-dollar infrastructure bill that Biden administration is working on. If passed, it’s bound to add fuel to the bonfire already raging in metal stocks like the following three:
United States Steel (NYSE:X)
Freeport-McMoRan (NYSE:FCX)
Alcoa (NYSE:AA)
If you’re looking to add exposure to steel, copper, or aluminum in your portfolio, these all deserve consideration. Let’s take a closer look at each chart.
Stocks to Buy: United States Steel (X)
Source: The thinkorswim® platform from TD Ameritrade
United States Steel is one of the most popular plays in the space. Its average daily trading volume runs north of 20 million shares, and it has extremely liquid options to boot. The lower price tag of $21 also makes it a favorite among the retail crowd. Since bottoming last March at $4.54, X stock has climbed 381% to its current perch.
This week’s pullback stopped dead at the rising 50-day moving average. Buyers returned in a big way on Thursday, and prices are up another 7% today. The message over the past few days is clear: dip buyers are alive and well.
If you want a higher probability trade, then naked puts are appealing here. For the more aggressive readers looking to better capitalize on trend continuation, I suggest bull calls.
The Trade: Buy the June $22/$30 bull call for $2.
Freeport-McMoRan (FCX)
Source: The thinkorswim® platform from TD Ameritrade
If you thought X’s numbers were impressive, wait till you see Freeport’s. The copper giant bottomed at $4.82 last year and has since boomed to $33 – a gain of 585%. This week’s drop resulted in the first close below the 50-day moving average since last April. But the reversal on Thursday and today’s follow-through suggests it could be a false support break.
7 Risky Stocks Ready to Roll on Reopening
Implied volatility is too low to make selling puts attractive here. Instead, I suggest bull calls to bet on a return to the recent highs at $39.
The Trade: Buy the June $33/$39 for $1.95.
The max loss is $1.95 and will be forfeit if FCX is below $33 at expiration. The max gain is $4.05 and will be captured if prices rise past $39 by expiration.
Alcoa (AA)
Source: The thinkorswim® platform from TD Ameritrade
Alcoa rounds out today’s list of metal stocks to buy. Its resurrection hasn’t been as consistent as its predecessors, but it doesn’t matter. Every dip, however messy, has been a buying opportunity regardless. The aluminum behemoth is popping nearly 8% this morning as buyers swarm anything and everything related to metals.
With the rally, AA has reclaimed the north side of the 20-day moving average and is now within striking distance of a new 52-week high. The past month of chop has created a high base pattern that is now on the verge of breaking out. Volume patterns are also lending a hand to the bullish argument. Very few distribution days have cropped up over the past month, showing selling pressure remains contained.
The Trade: Buy the June $32/$39 bull call spread for $2.10.
Your risk is $2.10, and the potential reward is $4.90.
On the date of publication, Tyler Craig held a LONG position in FCX.
For a free trial to the best trading community on the planet and Tyler’s current home, click here!
The post 3 Booming Metal Stocks to Buy for the Infrastructure Bill appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If passed, it’s bound to add fuel to the bonfire already raging in metal stocks like the following three: United States Steel (NYSE:X) Freeport-McMoRan (NYSE:FCX) Alcoa (NYSE:AA) If you’re looking to add exposure to steel, copper, or aluminum in your portfolio, these all deserve consideration. Alcoa (AA) Source: The thinkorswim® platform from TD Ameritrade Alcoa rounds out today’s list of metal stocks to buy. With the rally, AA has reclaimed the north side of the 20-day moving average and is now within striking distance of a new 52-week high.
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If passed, it’s bound to add fuel to the bonfire already raging in metal stocks like the following three: United States Steel (NYSE:X) Freeport-McMoRan (NYSE:FCX) Alcoa (NYSE:AA) If you’re looking to add exposure to steel, copper, or aluminum in your portfolio, these all deserve consideration. Alcoa (AA) Source: The thinkorswim® platform from TD Ameritrade Alcoa rounds out today’s list of metal stocks to buy. With the rally, AA has reclaimed the north side of the 20-day moving average and is now within striking distance of a new 52-week high.
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If passed, it’s bound to add fuel to the bonfire already raging in metal stocks like the following three: United States Steel (NYSE:X) Freeport-McMoRan (NYSE:FCX) Alcoa (NYSE:AA) If you’re looking to add exposure to steel, copper, or aluminum in your portfolio, these all deserve consideration. Alcoa (AA) Source: The thinkorswim® platform from TD Ameritrade Alcoa rounds out today’s list of metal stocks to buy. With the rally, AA has reclaimed the north side of the 20-day moving average and is now within striking distance of a new 52-week high.
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Alcoa (AA) Source: The thinkorswim® platform from TD Ameritrade Alcoa rounds out today’s list of metal stocks to buy. If passed, it’s bound to add fuel to the bonfire already raging in metal stocks like the following three: United States Steel (NYSE:X) Freeport-McMoRan (NYSE:FCX) Alcoa (NYSE:AA) If you’re looking to add exposure to steel, copper, or aluminum in your portfolio, these all deserve consideration. With the rally, AA has reclaimed the north side of the 20-day moving average and is now within striking distance of a new 52-week high.
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1069.0
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2021-03-26 00:00:00 UTC
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Schaeffer's Senior V.P. of Research on Small-Caps
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AA
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https://www.nasdaq.com/articles/schaeffers-senior-v.p.-of-research-on-small-caps-2021-03-26
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nan
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nan
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The Russell 2000 Index (RUT) has been on a tear in the last 12 months. To the uninitiated, choosing small-caps may seem like a daunting task akin to throwing darts at a dart board. Against this backdrop, Benzinga sat down with Senior V.P. of Research Todd Salamone at Schaeffer’s Investment Research to talk about some of the implications of the RUT's rise and the importance of education in order to make informed investment decisions.
Below is an excerpt of the article, which can also be found here.
Small-cap stocks have been soaring over the past few months, with the small-cap Russell 2000 Index (RUT) outperforming large-cap indexes such as the S&P 500 and Nasdaq 100 that are relatively flat on the year.
The Russell 2000, which tracks 2,000 small-cap companies, is up 18.5% year-to-date as of March 18, 2021. In comparison, the Nasdaq 100, which is made up of the 100 largest non-financial companies in the technology-heavy index, is up 1.2% YTD. Although still early in 2021, this marks a distinct change from previous years in which value-oriented small caps have struggled to garner quite the same investor attention as more high-profile, performance stocks.
In further examining the rise in small-cap stocks, Senior Vice President of Schaeffer’s Investment Research Todd Salamone spoke with Benzinga regarding his thoughts on the rise of small caps, as well as, what small-cap companies investors should keep an eye on and how investors can position themselves for an economic rebound.
Salamone also attended the recent Benzinga Global Small Cap Conference, which took place from March 24-25, to share the following analysis as well as additional insight with attendees. The two-day conference featured presentations from executive leadership of small-cap stocks, specifically in the biotech industry.
Will The Small-Cap Rally Continue?
Small-cap stocks have had a remarkable run during the pandemic. As a result of this growth, many traders have been left to question whether or not this trend will continue in the months ahead.
According to Salamone, the technical picture of Russell 2000 and ETFs like the iShares Russell 2000 ETF (IWM) 1.05% does suggest that the rising trend will likely continue.
At the end of 2020, the iShares Russell 2000 ETF (IWM) experienced a breakout above the $175 area, which is double the $86-$87 resistance level that was in place from 2007-2012, Salamone noted.
“In fact, the $175 area marked a huge IWM peak in late 2018 and this level didn’t get taken out until late last year. In other words, there was a lot of profit-taking as buyers that bought the 2013 breakout re-assessed risk from 2018 into late 2020,” said Salamone.
He also noted that long-term breakouts such as this one are usually long-lasting, “especially when there are still many pessimists, which was the case in late 2020 as was evident by the huge short interest on IWM components.”
Companies To Watch
Schaeffer’s Investment Research favors companies that display strong price action while sentiment measures indicate some lingering doubt. Salamone noted that this skepticism represents future buying power as the market is proving naysayers wrong who might be forced to eventually capitulate.
Given this preference, here are a few names on Schaeffer’s radar in the small-cap space:
Shake Shack, Inc. (NYSE:SHAK) is an American burger chain with about 275 locations worldwide and a $5 billion market cap. Given the number of locations and current market cap, this leaves room for tremendous growth potential for the company as the world continues to slowly step out from under the shadow of the pandemic. In 2021, the stock has hit new all-time highs, with current YTD performance up 40% as of March 18, 2021. The company also has the potential to garner future positive sell-side attention, as only four of the 23 analysts following SHAK rate it a buy.
United States Steel Corporation (NYSE:X) and Alcoa Corp (NYSE:AA)
U.S. steel is an American integrated steel producer and Alcoa is an American industrial company as well as the world's eighth-largest producer of aluminum. Both companies have market caps of around $6 billion and low analyst ratings, which provides them with a lot of upgrade potential.
Aspira Women’s Health (NYSE:AWH)
Develops gynecologic tests for identifying ovarian cancer and other gynecologic diseases. The company has a market cap of less than $1 billion. They expanded network access in October. AWH had a multi-year breakout in late January above the 2011 intraday peak but shares were still well off from their all-time high in 2003.
Sonos Inc (NASDAQ:SONO)
A developer and manufacturer of wireless, multi-room audio systems. The company has a $5 billion market cap. In November, the company announced a buyback plan and shares gapped higher in mid-February on earnings. Shares are currently surging both YTD and year-over-year, up 72% and 479% respectively.
Economic Rebound
Speaking on small caps holistically, Salamone singled out the iShares Russell 2000 ETF (IWM) as offering diverse exposure to the small cap segment. The ETF is comprised of stocks throughout 11 different sectors, with the five biggest areas of exposure being a mix of growth and value segments like health care (the largest), consumer cyclicals, industrials, financial services, and technology (the smallest).
Salamone noted that investors may want to keep these main sectors in mind when putting together their portfolios.
“The interest rate environment in recent months has favored financial services and industrials, and consumer cyclicals are a great way to position yourself for an economic rebound.”
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United States Steel Corporation (NYSE:X) and Alcoa Corp (NYSE:AA) U.S. steel is an American integrated steel producer and Alcoa is an American industrial company as well as the world's eighth-largest producer of aluminum. Although still early in 2021, this marks a distinct change from previous years in which value-oriented small caps have struggled to garner quite the same investor attention as more high-profile, performance stocks. Given the number of locations and current market cap, this leaves room for tremendous growth potential for the company as the world continues to slowly step out from under the shadow of the pandemic.
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United States Steel Corporation (NYSE:X) and Alcoa Corp (NYSE:AA) U.S. steel is an American integrated steel producer and Alcoa is an American industrial company as well as the world's eighth-largest producer of aluminum. Economic Rebound Speaking on small caps holistically, Salamone singled out the iShares Russell 2000 ETF (IWM) as offering diverse exposure to the small cap segment. “The interest rate environment in recent months has favored financial services and industrials, and consumer cyclicals are a great way to position yourself for an economic rebound.” The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United States Steel Corporation (NYSE:X) and Alcoa Corp (NYSE:AA) U.S. steel is an American integrated steel producer and Alcoa is an American industrial company as well as the world's eighth-largest producer of aluminum. Small-cap stocks have been soaring over the past few months, with the small-cap Russell 2000 Index (RUT) outperforming large-cap indexes such as the S&P 500 and Nasdaq 100 that are relatively flat on the year. In further examining the rise in small-cap stocks, Senior Vice President of Schaeffer’s Investment Research Todd Salamone spoke with Benzinga regarding his thoughts on the rise of small caps, as well as, what small-cap companies investors should keep an eye on and how investors can position themselves for an economic rebound.
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United States Steel Corporation (NYSE:X) and Alcoa Corp (NYSE:AA) U.S. steel is an American integrated steel producer and Alcoa is an American industrial company as well as the world's eighth-largest producer of aluminum. In further examining the rise in small-cap stocks, Senior Vice President of Schaeffer’s Investment Research Todd Salamone spoke with Benzinga regarding his thoughts on the rise of small caps, as well as, what small-cap companies investors should keep an eye on and how investors can position themselves for an economic rebound. “In fact, the $175 area marked a huge IWM peak in late 2018 and this level didn’t get taken out until late last year.
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1070.0
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2021-03-25 00:00:00 UTC
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May 7th Options Now Available For Alcoa Corporation (AA)
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AA
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https://www.nasdaq.com/articles/may-7th-options-now-available-for-alcoa-corporation-aa-2021-03-25
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 7th contracts and identified one put and one call contract of particular interest.
The put contract at the $28.00 strike price has a current bid of $2.19. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $28.00, but will also collect the premium, putting the cost basis of the shares at $25.81 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $28.29/share today.
Because the $28.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.82% return on the cash commitment, or 66.39% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $28.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $29.00 strike price has a current bid of $2.01. If an investor was to purchase shares of AA stock at the current price level of $28.29/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $29.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.61% if the stock gets called away at the May 7th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $29.00 strike highlighted in red:
Considering the fact that the $29.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.10% boost of extra return to the investor, or 60.31% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 71%, while the implied volatility in the call contract example is 74%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $28.29) to be 69%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $29.00 strike highlighted in red: Considering the fact that the $29.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 7th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $29.00 strike highlighted in red: Considering the fact that the $29.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 7th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $29.00 strike highlighted in red: Considering the fact that the $29.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 7th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new May 7th contracts and identified one put and one call contract of particular interest. Below is a chart showing AA's trailing twelve month trading history, with the $29.00 strike highlighted in red: Considering the fact that the $29.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the May 7th expiration.
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1071.0
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2021-03-24 00:00:00 UTC
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Why Alcoa Stock Just Popped Again
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-just-popped-again-2021-03-24
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nan
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nan
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What happened
Three Wall Street analysts have upgraded Alcoa (NYSE: AA) stock.
The month of March began with an upgrade from Goldman Sachs, which posited a $32 share price for Alcoa based on its expectation that aluminum prices will rise from $2,300 to $2,500 to $2,750 per ton over the next three years. Last week, Deutsche Bank suggested that even if aluminum costs only $2,145 a ton this year, and $2,050 next year, that should be worth $36 a share to Alcoa. And today, we have yet another upgrade, from Morgan Stanley -- and this analyst thinks Alcoa could be worth $43 a share.
Alcoa stock is up 11% as of 11 a.m. EDT in response.
Image source: Getty Images.
So what
As Morgan Stanley explains in a note covered on TheFly.com today, Alcoa stock is currently trading for just four times its expected 2022 enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio -- but historically, the stock has traded for closer to 7.5 times forward EBITDA.
This current valuation, says the analyst, is "well below its historical average." And given Morgan Stanley's belief that aluminum is more important to global "decarbonization" policies than copper, the analyst is shifting its focus among metals stocks to emphasize Alcoa over any copper miners for example -- and is giving Alcoa shares an overweight rating.
Now what
Is Morgan Stanley right about this? Are Goldman and Deutsche right, too?
It's hard to say for sure, but consider that Alcoa managed to generate $41 million in positive free cash flow last year's recession, and that analysts on average forecast the company will grow that number nearly tenfold this year (to $394 million, according to data from S&P Global Market Intelligence). Such a gusher of free cash flow would value Alcoa stock at just 14.3 times this year's cash profits, and probably lift the company's P/E ratio into positive territory as well.
I kind of suspect that would be good news for the stock.
10 stocks we like better than Alcoa Corporation
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Three Wall Street analysts have upgraded Alcoa (NYSE: AA) stock. So what As Morgan Stanley explains in a note covered on TheFly.com today, Alcoa stock is currently trading for just four times its expected 2022 enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio -- but historically, the stock has traded for closer to 7.5 times forward EBITDA. It's hard to say for sure, but consider that Alcoa managed to generate $41 million in positive free cash flow last year's recession, and that analysts on average forecast the company will grow that number nearly tenfold this year (to $394 million, according to data from S&P Global Market Intelligence).
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What happened Three Wall Street analysts have upgraded Alcoa (NYSE: AA) stock. The month of March began with an upgrade from Goldman Sachs, which posited a $32 share price for Alcoa based on its expectation that aluminum prices will rise from $2,300 to $2,500 to $2,750 per ton over the next three years. It's hard to say for sure, but consider that Alcoa managed to generate $41 million in positive free cash flow last year's recession, and that analysts on average forecast the company will grow that number nearly tenfold this year (to $394 million, according to data from S&P Global Market Intelligence).
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What happened Three Wall Street analysts have upgraded Alcoa (NYSE: AA) stock. So what As Morgan Stanley explains in a note covered on TheFly.com today, Alcoa stock is currently trading for just four times its expected 2022 enterprise value to earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio -- but historically, the stock has traded for closer to 7.5 times forward EBITDA. And given Morgan Stanley's belief that aluminum is more important to global "decarbonization" policies than copper, the analyst is shifting its focus among metals stocks to emphasize Alcoa over any copper miners for example -- and is giving Alcoa shares an overweight rating.
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What happened Three Wall Street analysts have upgraded Alcoa (NYSE: AA) stock. And today, we have yet another upgrade, from Morgan Stanley -- and this analyst thinks Alcoa could be worth $43 a share. It's hard to say for sure, but consider that Alcoa managed to generate $41 million in positive free cash flow last year's recession, and that analysts on average forecast the company will grow that number nearly tenfold this year (to $394 million, according to data from S&P Global Market Intelligence).
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1072.0
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2021-03-23 00:00:00 UTC
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Alcoa To Supply Sustainable Aluminum For Wheels On Audi E-tron GT
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AA
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https://www.nasdaq.com/articles/alcoa-to-supply-sustainable-aluminum-for-wheels-on-audi-e-tron-gt-2021-03-23
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nan
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nan
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(RTTNews) - Alcoa Corp. (AA) said that it will supply sustainable aluminum for the wheels on the e-tron GT, Audi's first electric sports car.
Alcoa is supplying aluminum to RONAL GROUP for the manufacture of the Audi e-tron GT's high-performance alloy wheels, produced with a combination of metal from the ELYSISTM zero-carbon emissions smelting technology and EcoLum, Alcoa's low-carbon aluminum brand.
Alcoa said it invented the zero-carbon emissions technology that ELYSIS, a joint venture company co-founded by Alcoa, is working to ramp up to a commercial scale. The process emits pure oxygen as a byproduct and eliminates all greenhouse gas emissions by replacing the carbon anodes used in traditional aluminum smelting with inert, proprietary materials.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA) said that it will supply sustainable aluminum for the wheels on the e-tron GT, Audi's first electric sports car. Alcoa is supplying aluminum to RONAL GROUP for the manufacture of the Audi e-tron GT's high-performance alloy wheels, produced with a combination of metal from the ELYSISTM zero-carbon emissions smelting technology and EcoLum, Alcoa's low-carbon aluminum brand. The process emits pure oxygen as a byproduct and eliminates all greenhouse gas emissions by replacing the carbon anodes used in traditional aluminum smelting with inert, proprietary materials.
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(RTTNews) - Alcoa Corp. (AA) said that it will supply sustainable aluminum for the wheels on the e-tron GT, Audi's first electric sports car. Alcoa is supplying aluminum to RONAL GROUP for the manufacture of the Audi e-tron GT's high-performance alloy wheels, produced with a combination of metal from the ELYSISTM zero-carbon emissions smelting technology and EcoLum, Alcoa's low-carbon aluminum brand. Alcoa said it invented the zero-carbon emissions technology that ELYSIS, a joint venture company co-founded by Alcoa, is working to ramp up to a commercial scale.
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(RTTNews) - Alcoa Corp. (AA) said that it will supply sustainable aluminum for the wheels on the e-tron GT, Audi's first electric sports car. Alcoa is supplying aluminum to RONAL GROUP for the manufacture of the Audi e-tron GT's high-performance alloy wheels, produced with a combination of metal from the ELYSISTM zero-carbon emissions smelting technology and EcoLum, Alcoa's low-carbon aluminum brand. Alcoa said it invented the zero-carbon emissions technology that ELYSIS, a joint venture company co-founded by Alcoa, is working to ramp up to a commercial scale.
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(RTTNews) - Alcoa Corp. (AA) said that it will supply sustainable aluminum for the wheels on the e-tron GT, Audi's first electric sports car. Alcoa is supplying aluminum to RONAL GROUP for the manufacture of the Audi e-tron GT's high-performance alloy wheels, produced with a combination of metal from the ELYSISTM zero-carbon emissions smelting technology and EcoLum, Alcoa's low-carbon aluminum brand. Alcoa said it invented the zero-carbon emissions technology that ELYSIS, a joint venture company co-founded by Alcoa, is working to ramp up to a commercial scale.
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1073.0
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2021-03-18 00:00:00 UTC
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Should You Hold On To Alcoa Stock After 9% Rally Last Week?
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AA
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https://www.nasdaq.com/articles/should-you-hold-on-to-alcoa-stock-after-9-rally-last-week-2021-03-18
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nan
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nan
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Alcoa stock (NYSE: AA) shot up 9% in the last five trading days (one week) and currently trades at $31 per share. This reflects more than a 2x rise compared to the S&P 500 which saw a 4% increase during this period. After the company beat analysts’ expectations in its 2020 report, the company recently received a thumbs up from Goldman Sachs, which upgraded its call on Alcoa’s stock from sell to buy – a two-notch upgrade. Despite having a positive free cash flow (FCF) generation over recent years, Alcoa’s FCF has been lower than its peers. Also, its margins have been affected due to high cost aluminum operations. However, aluminum prices have remained strong over recent months and have, in fact, risen from less than $2,175/ton a week back to $2,218/ton on 15th March 2021. Prices are likely to remain elevated over the next two years driven by higher demand. Higher aluminum price realization has led to expectations of improvement in Alcoa’s FCF, which the company is likely to use for deleveraging. Thus, expectations of improvement in fundamentals, stronger balance sheet and overall positive sentiment with respect to global aluminum prices, have led to a surge in Alcoa’s stock price over the last week.
However, is Alcoa stock set to continue its upward trajectory or could we expect some correction? We believe that there is a strong chance of further rise in Alcoa stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on Alcoa Stock Chances Of Rise for more details.
Five Days: AA 9%, vs. S&P500 4.2%; Outperformed market
(7% likelihood event)
Alcoa stock rose 9.0% over a five-day trading period ending 3/15/2021, compared to broader market (S&P500) rise of 4.2%
A change of 9% or more over five trading days is a 7% likelihood event, which has occurred 183 times out of 2516 in the last ten years
Ten Days: AA 19%, vs. S&P500 2.1%; Outperformed market
(2% likelihood event)
Alcoa stock rose 19% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.1%
A change of 19% or more over ten trading days is a 2% likelihood event, which has occurred 42 times out of 2500 in the last ten years
Twenty-One Days: AA 45%, vs. S&P500 1.7%; Outperformed market
(11% likelihood event)
Alcoa stock rose 45% the last 21 trading days (one month), compared to broader market (S&P500) rise of 1.7%
A change of 45% or more over 21 trading days is a 11% likelihood event, which has occurred 262 times out of 2458 in the last ten years
Out of 183 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 9.0% or more, 101 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 101 out of 183, or about 58% chance of gain in AA stock over the coming month
While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa stock (NYSE: AA) shot up 9% in the last five trading days (one week) and currently trades at $31 per share. Five Days: AA 9%, vs. S&P500 4.2%; Outperformed market (7% likelihood event) Alcoa stock rose 9.0% over a five-day trading period ending 3/15/2021, compared to broader market (S&P500) rise of 4.2% A change of 9% or more over five trading days is a 7% likelihood event, which has occurred 183 times out of 2516 in the last ten years Ten Days: AA 19%, vs. S&P500 2.1%; Outperformed market (2% likelihood event) Alcoa stock rose 19% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.1% A change of 19% or more over ten trading days is a 2% likelihood event, which has occurred 42 times out of 2500 in the last ten years Twenty-One Days: AA 45%, vs. S&P500 1.7%; Outperformed market (11% likelihood event) Alcoa stock rose 45% the last 21 trading days (one month), compared to broader market (S&P500) rise of 1.7% A change of 45% or more over 21 trading days is a 11% likelihood event, which has occurred 262 times out of 2458 in the last ten years Out of 183 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 9.0% or more, 101 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 101 out of 183, or about 58% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities.
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Five Days: AA 9%, vs. S&P500 4.2%; Outperformed market (7% likelihood event) Alcoa stock rose 9.0% over a five-day trading period ending 3/15/2021, compared to broader market (S&P500) rise of 4.2% A change of 9% or more over five trading days is a 7% likelihood event, which has occurred 183 times out of 2516 in the last ten years Ten Days: AA 19%, vs. S&P500 2.1%; Outperformed market (2% likelihood event) Alcoa stock rose 19% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.1% A change of 19% or more over ten trading days is a 2% likelihood event, which has occurred 42 times out of 2500 in the last ten years Twenty-One Days: AA 45%, vs. S&P500 1.7%; Outperformed market (11% likelihood event) Alcoa stock rose 45% the last 21 trading days (one month), compared to broader market (S&P500) rise of 1.7% A change of 45% or more over 21 trading days is a 11% likelihood event, which has occurred 262 times out of 2458 in the last ten years Out of 183 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 9.0% or more, 101 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). Alcoa stock (NYSE: AA) shot up 9% in the last five trading days (one week) and currently trades at $31 per share. This historical pattern reflects 101 out of 183, or about 58% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities.
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Five Days: AA 9%, vs. S&P500 4.2%; Outperformed market (7% likelihood event) Alcoa stock rose 9.0% over a five-day trading period ending 3/15/2021, compared to broader market (S&P500) rise of 4.2% A change of 9% or more over five trading days is a 7% likelihood event, which has occurred 183 times out of 2516 in the last ten years Ten Days: AA 19%, vs. S&P500 2.1%; Outperformed market (2% likelihood event) Alcoa stock rose 19% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.1% A change of 19% or more over ten trading days is a 2% likelihood event, which has occurred 42 times out of 2500 in the last ten years Twenty-One Days: AA 45%, vs. S&P500 1.7%; Outperformed market (11% likelihood event) Alcoa stock rose 45% the last 21 trading days (one month), compared to broader market (S&P500) rise of 1.7% A change of 45% or more over 21 trading days is a 11% likelihood event, which has occurred 262 times out of 2458 in the last ten years Out of 183 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 9.0% or more, 101 of them resulted in AA stock rising over the subsequent one-month period (21 trading days). This historical pattern reflects 101 out of 183, or about 58% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Alcoa stock (NYSE: AA) shot up 9% in the last five trading days (one week) and currently trades at $31 per share.
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This historical pattern reflects 101 out of 183, or about 58% chance of gain in AA stock over the coming month While Alcoa stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. Alcoa stock (NYSE: AA) shot up 9% in the last five trading days (one week) and currently trades at $31 per share. Five Days: AA 9%, vs. S&P500 4.2%; Outperformed market (7% likelihood event) Alcoa stock rose 9.0% over a five-day trading period ending 3/15/2021, compared to broader market (S&P500) rise of 4.2% A change of 9% or more over five trading days is a 7% likelihood event, which has occurred 183 times out of 2516 in the last ten years Ten Days: AA 19%, vs. S&P500 2.1%; Outperformed market (2% likelihood event) Alcoa stock rose 19% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 2.1% A change of 19% or more over ten trading days is a 2% likelihood event, which has occurred 42 times out of 2500 in the last ten years Twenty-One Days: AA 45%, vs. S&P500 1.7%; Outperformed market (11% likelihood event) Alcoa stock rose 45% the last 21 trading days (one month), compared to broader market (S&P500) rise of 1.7% A change of 45% or more over 21 trading days is a 11% likelihood event, which has occurred 262 times out of 2458 in the last ten years Out of 183 instances in the last ten years that Alcoa (AA) stock saw a five-day rise of 9.0% or more, 101 of them resulted in AA stock rising over the subsequent one-month period (21 trading days).
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1074.0
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2021-03-18 00:00:00 UTC
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Alcoa signs electricity deals for Portland aluminium smelter
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AA
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https://www.nasdaq.com/articles/alcoa-signs-electricity-deals-for-portland-aluminium-smelter-2021-03-18
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nan
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nan
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March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new agreements with Australia's AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy to supply electricity to its Portland aluminium smelter in the Australian state of Victoria.
The five-year agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said.
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler)
((Shashwat.Awasthi@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new agreements with Australia's AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy to supply electricity to its Portland aluminium smelter in the Australian state of Victoria. The five-year agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler) ((Shashwat.Awasthi@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new agreements with Australia's AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy to supply electricity to its Portland aluminium smelter in the Australian state of Victoria. The five-year agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler) ((Shashwat.Awasthi@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new agreements with Australia's AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy to supply electricity to its Portland aluminium smelter in the Australian state of Victoria. The five-year agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler) ((Shashwat.Awasthi@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new agreements with Australia's AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy to supply electricity to its Portland aluminium smelter in the Australian state of Victoria. The five-year agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said. (Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler) ((Shashwat.Awasthi@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1075.0
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2021-03-18 00:00:00 UTC
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Alcoa Australian smelter wins new lifeline to 2026
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AA
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https://www.nasdaq.com/articles/alcoa-australian-smelter-wins-new-lifeline-to-2026-2021-03-18
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nan
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nan
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Adds details of agreements, background
March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new, five-year electricity supply agreements with AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy for its Portland aluminium smelter in the Australian state of Victoria.
The Portland smelter consumes about 10% of Victoria's electricity and is the biggest single electricity consumer in the state.
The federal government had proposed a revenue top-up scheme in December last year to ensure the smelter remained open after its operations were threatened as Alcoa sought to cut costs.
The government had offered to ensure the smelter earned at least A$76.8 million through June 2025, and the company said on Friday that the state of Victoria had agreed in principle to match the federal government's funding package.
The smelter is co-owned by Alcoa, Australia's Alumina Ltd AWC.AX, CITIC Resources 1215.HK and an arm of Japan's Marubeni Corp 8002.T.
The agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said.
Financial terms of the agreements were not disclosed.
($1 = 1.2890 Australian dollars)
(Reporting by Shashwat Awasthi in Bengaluru and Sonali Paul in Melbourne; Editing by Leslie Adler and Stephen Coates)
((Shashwat.Awasthi@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details of agreements, background March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new, five-year electricity supply agreements with AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy for its Portland aluminium smelter in the Australian state of Victoria. The federal government had proposed a revenue top-up scheme in December last year to ensure the smelter remained open after its operations were threatened as Alcoa sought to cut costs. The smelter is co-owned by Alcoa, Australia's Alumina Ltd AWC.AX, CITIC Resources 1215.HK and an arm of Japan's Marubeni Corp 8002.T.
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Adds details of agreements, background March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new, five-year electricity supply agreements with AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy for its Portland aluminium smelter in the Australian state of Victoria. The Portland smelter consumes about 10% of Victoria's electricity and is the biggest single electricity consumer in the state. The federal government had proposed a revenue top-up scheme in December last year to ensure the smelter remained open after its operations were threatened as Alcoa sought to cut costs.
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Adds details of agreements, background March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new, five-year electricity supply agreements with AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy for its Portland aluminium smelter in the Australian state of Victoria. The federal government had proposed a revenue top-up scheme in December last year to ensure the smelter remained open after its operations were threatened as Alcoa sought to cut costs. The government had offered to ensure the smelter earned at least A$76.8 million through June 2025, and the company said on Friday that the state of Victoria had agreed in principle to match the federal government's funding package.
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Adds details of agreements, background March 19 (Reuters) - Alcoa Corp AA.N said on Friday it had signed new, five-year electricity supply agreements with AGL Energy AGL.AX, Origin Energy ORG.AX and Alinta Energy for its Portland aluminium smelter in the Australian state of Victoria. The federal government had proposed a revenue top-up scheme in December last year to ensure the smelter remained open after its operations were threatened as Alcoa sought to cut costs. The agreements will commence on Aug. 1, after its existing agreement with AGL expires, Alcoa said.
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1076.0
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2021-03-17 00:00:00 UTC
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Wall Street Roundup: Bullish & Bearish Calls Of The Day
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AA
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https://www.nasdaq.com/articles/wall-street-roundup%3A-bullish-bearish-calls-of-the-day-2021-03-17
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nan
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nan
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The recent run-up in stocks, an expected economic expansion, and hopes of recovery in consumer demand have kept analysts busy as they continue to shuffle their recommendations.
Between the ups and downs in the market, TipRanks, through its comprehensive research tools, continues to scan and examine the prospects of your favorite stocks, bringing you the latest analyst action on them.
Without further ado, let's delve deeper into a few of the noteworthy bullish and bearish calls of the day.
Upgrades
Oppenheimer analyst Christopher Glynn has upgraded Roper Technologies (ROP) to Buy from Hold, given "positive view of FCF growth profile and increasingly affordable FCF yield, anchored by operating progress around recent heavy acquisition activity and anticipated broadening organic growth profile in coming quarters," the analyst said in a research note. Glynn also established a price target of $460 on the stock.
Furthermore, TipRanks data shows that financial blogger opinions are 100% Bullish on ROP, compared to a sector average of 69%
A pop culture consumer products company, Funko (FNKO), also received an upgrade from BMO Capital analyst Gerrick Johnson to Hold from Sell on the company's "innovative new product lines." Johnson also lifted the stock's price target to $16 from $5.
Overall, the Street has a Moderate Buy consensus rating on FNKO based on 2 Buys and 5 Holds. The average analyst price target of $17.61 implies downside potential of about 4.8% to current levels.
Canaccord Genuity analyst Richard Close raised the rating on Ontrak (OTRK) to Buy from Hold and lifted the price target to $46 from $32, following Jonathan Mayhew's appointment as new CEO.
Wall Street has a Moderate Buy consensus rating on OTRK based on 4 Buys and 2 Holds. The average analyst price target of $47.00 implies upside potential of about 36% to current levels.
Cowen & Co. analyst Karl Ackerman lifted Seagate Technology’s (STX) rating from Hold to Buy and raised the price target to $95 from $66. In a note to investors, the analyst said, “We are increasingly convinced STX is transitioning from a period of secular declines toward a multiyear period of growth.”
Like Ackerman, TipRanks data shows that financial blogger opinions are 90% Bullish on STX, compared to a sector average of 69%
Alcoa (AA) received an upgrade from Deutsche Bank analyst Chris Terry. Terry raised the rating from Hold to Buy and even lifted the price target to $36 from $22, citing strong balance sheet position and attractive free cash flows. The analyst expects the company to beat 1Q results.
Overall, the Street has a Moderate Buy consensus rating on AA based on 2 Buys and 3 Holds. The average analyst price target of $28.30 implies downside potential of about 8.8% to current levels.
Another Deutsche Bank analyst Brian Mullan upgraded McDonald's (MCD) from Hold to Buy and raised the stock’s price target to $244 from $232. The analyst said, “Over the balance of this year, we think that continued momentum in the U.S. business as well as an arguably underappreciated market share opportunity in the IOM [International Operated Markets] segment should lead to upward revisions to consensus EPS, specifically in 2022e and potentially in 2023e as well.”
Furthermore, MCD scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Downgrades
Cowen & Co. analyst Doug Schenkel downgraded GenMark Diagnostics (GNMK) from Buy to Hold but lifted the price target to $24.05 from $23.00 after Roche Diagnostics made an all-cash acquisition offer of $1.8 billion for GenMark Diagnostics.
From TipRanks’ Smart Score ranking, GenMark gets a 3 out of 10, suggesting that the stock is likely to underperform market expectations.
Truist Financial analyst Tristan Richardson downgraded Plug Power (PLUG) to Hold from Buy following the company's financial restatements for FY18 and FY19. Due to accounting error news, shares of Plug Power are down over 20% in Wednesday's pre-market trading session.
Furthermore, TipRanks data shows that financial blogger opinions are 58% Bullish, compared to a sector average of 69%.
Credit Suisse analyst Andrew Kuske downgraded Mercer International (MERC) to Hold from Buy, citing the recent run in its stock and uncertainty related to pulp prices over time. Meanwhile, the analyst lifted the price target to $18 from $16 on the stock.
However, the Street has a Moderate Buy consensus rating on MERC based on 3 Buys and 2 Holds. The average analyst price target of $16.80 implies upside potential of about 11.3% to current levels.
Guggenheim analyst Glen Santangelo downgraded CVS Health (CVS) to Hold from Buy, as the analyst sees balanced risk/reward after the stock recovery.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on CVS, with 3% of investors reducing their exposure to CVS stock over the last seven days period.
National Bank analyst Mike Parkin slashed Kirkland Lake Gold’s (KL) rating to Hold from Buy and lowered the price target from C$65 to C$56 (or $44.96), as the analyst expects the upcoming interim Detour Lake technical report to be a dampener.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on KL, with 2.2% of investors reducing their exposure to KL stock over the last seven days period.
Besides these bullish and bearish calls of the day, take a look at these top investment ideas:
AMD: New CPU's Market Share Gains Could Be Limited to Supply Issues
Keep on Buying NIO Stock, Says Analyst Following Investor Meeting
XPeng Is Undervalued After A Volatile Run Since IPO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In a note to investors, the analyst said, “We are increasingly convinced STX is transitioning from a period of secular declines toward a multiyear period of growth.” Like Ackerman, TipRanks data shows that financial blogger opinions are 90% Bullish on STX, compared to a sector average of 69% Alcoa (AA) received an upgrade from Deutsche Bank analyst Chris Terry. Overall, the Street has a Moderate Buy consensus rating on AA based on 2 Buys and 3 Holds. Between the ups and downs in the market, TipRanks, through its comprehensive research tools, continues to scan and examine the prospects of your favorite stocks, bringing you the latest analyst action on them.
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In a note to investors, the analyst said, “We are increasingly convinced STX is transitioning from a period of secular declines toward a multiyear period of growth.” Like Ackerman, TipRanks data shows that financial blogger opinions are 90% Bullish on STX, compared to a sector average of 69% Alcoa (AA) received an upgrade from Deutsche Bank analyst Chris Terry. Overall, the Street has a Moderate Buy consensus rating on AA based on 2 Buys and 3 Holds. Upgrades Oppenheimer analyst Christopher Glynn has upgraded Roper Technologies (ROP) to Buy from Hold, given "positive view of FCF growth profile and increasingly affordable FCF yield, anchored by operating progress around recent heavy acquisition activity and anticipated broadening organic growth profile in coming quarters," the analyst said in a research note.
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In a note to investors, the analyst said, “We are increasingly convinced STX is transitioning from a period of secular declines toward a multiyear period of growth.” Like Ackerman, TipRanks data shows that financial blogger opinions are 90% Bullish on STX, compared to a sector average of 69% Alcoa (AA) received an upgrade from Deutsche Bank analyst Chris Terry. Overall, the Street has a Moderate Buy consensus rating on AA based on 2 Buys and 3 Holds. Another Deutsche Bank analyst Brian Mullan upgraded McDonald's (MCD) from Hold to Buy and raised the stock’s price target to $244 from $232.
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In a note to investors, the analyst said, “We are increasingly convinced STX is transitioning from a period of secular declines toward a multiyear period of growth.” Like Ackerman, TipRanks data shows that financial blogger opinions are 90% Bullish on STX, compared to a sector average of 69% Alcoa (AA) received an upgrade from Deutsche Bank analyst Chris Terry. Overall, the Street has a Moderate Buy consensus rating on AA based on 2 Buys and 3 Holds. Truist Financial analyst Tristan Richardson downgraded Plug Power (PLUG) to Hold from Buy following the company's financial restatements for FY18 and FY19.
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1077.0
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2021-03-11 00:00:00 UTC
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Interesting AA Put And Call Options For April 30th
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AA
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https://www.nasdaq.com/articles/interesting-aa-put-and-call-options-for-april-30th-2021-03-11
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
The put contract at the $31.50 strike price has a current bid of $1.47. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $31.50, but will also collect the premium, putting the cost basis of the shares at $30.03 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $32.61/share today.
Because the $31.50 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.67% return on the cash commitment, or 34.10% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $31.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $33.00 strike price has a current bid of $1.48. If an investor was to purchase shares of AA stock at the current price level of $32.61/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $33.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.73% if the stock gets called away at the April 30th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $33.00 strike highlighted in red:
Considering the fact that the $33.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.54% boost of extra return to the investor, or 33.16% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example above is 83%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $32.61) to be 77%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $33.00 strike highlighted in red: Considering the fact that the $33.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the April 30th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $33.00 strike highlighted in red: Considering the fact that the $33.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $33.00 strike highlighted in red: Considering the fact that the $33.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the April 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 30th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 30th contracts and identified one put and one call contract of particular interest. Below is a chart showing AA's trailing twelve month trading history, with the $33.00 strike highlighted in red: Considering the fact that the $33.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the April 30th expiration.
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1078.0
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2021-03-05 00:00:00 UTC
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Platts to launch 'green' aluminium prices in April
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AA
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https://www.nasdaq.com/articles/platts-to-launch-green-aluminium-prices-in-april-2021-03-05
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nan
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nan
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LONDON, March 5 (Reuters) - Platts will launch price assessments in April for 'green' aluminium, which is made using process that cut carbon emissions, the pricing agency said on Friday.
The metals sector has struggled with adopting common standards for low-carbon aluminium as rival producers fight for market share among consumers who are under pressure to cut their own emissions footprints.
The London Metal Exchange, the world's biggest industrial metals market, has rejected calls to create a separate contract for low-carbon aluminium and instead plans to create a digital register this year to store carbon details and an online platform for trading.
S&P Global Platts said it would start issuing daily prices for both low-carbon and zero-carbon aluminium on April 6.
Most large aluminium groups have launched products with lower-carbon footprints, mostly using hydro power, but each uses different standards.
Platts said its low-carbon aluminium price would apply to primary aluminium with maximum emissions at the smelter of four tonnes of carbon dioxide per tonne of metal.
"While Platts is initially providing new low-carbon pricing focused on aluminium, we also plan to launch additional price and cost references throughout the metals and raw materials value chains," said Ian Dudden, global pricing director for metals and agriculture.
Aluminium, which requires huge amounts of power to smelt, is one of the most carbon-intensive metals, emitting an average of 16.5 tonnes of CO2 per tonne of production. In contrast steel processing, while a much bigger polluter overall, emits just 2.3 tonnes per tonne.
(Reporting by Eric Onstad; Editing by Edmund Blair)
((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The metals sector has struggled with adopting common standards for low-carbon aluminium as rival producers fight for market share among consumers who are under pressure to cut their own emissions footprints. The London Metal Exchange, the world's biggest industrial metals market, has rejected calls to create a separate contract for low-carbon aluminium and instead plans to create a digital register this year to store carbon details and an online platform for trading. S&P Global Platts said it would start issuing daily prices for both low-carbon and zero-carbon aluminium on April 6.
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LONDON, March 5 (Reuters) - Platts will launch price assessments in April for 'green' aluminium, which is made using process that cut carbon emissions, the pricing agency said on Friday. Platts said its low-carbon aluminium price would apply to primary aluminium with maximum emissions at the smelter of four tonnes of carbon dioxide per tonne of metal. "While Platts is initially providing new low-carbon pricing focused on aluminium, we also plan to launch additional price and cost references throughout the metals and raw materials value chains," said Ian Dudden, global pricing director for metals and agriculture.
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LONDON, March 5 (Reuters) - Platts will launch price assessments in April for 'green' aluminium, which is made using process that cut carbon emissions, the pricing agency said on Friday. Platts said its low-carbon aluminium price would apply to primary aluminium with maximum emissions at the smelter of four tonnes of carbon dioxide per tonne of metal. "While Platts is initially providing new low-carbon pricing focused on aluminium, we also plan to launch additional price and cost references throughout the metals and raw materials value chains," said Ian Dudden, global pricing director for metals and agriculture.
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LONDON, March 5 (Reuters) - Platts will launch price assessments in April for 'green' aluminium, which is made using process that cut carbon emissions, the pricing agency said on Friday. Most large aluminium groups have launched products with lower-carbon footprints, mostly using hydro power, but each uses different standards. Aluminium, which requires huge amounts of power to smelt, is one of the most carbon-intensive metals, emitting an average of 16.5 tonnes of CO2 per tonne of production.
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1079.0
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2021-03-04 00:00:00 UTC
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Reliance Steel & Aluminum Stock At All-Time High – Time To Exit?
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AA
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https://www.nasdaq.com/articles/reliance-steel-aluminum-stock-at-all-time-high-time-to-exit-2021-03-04
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nan
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nan
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After rising more than 95% from its March 2020 lows, at the current price of $139 per share, Reliance Steel & Aluminum Co. stock (NYSE: RS) now looks overvalued. RS stock rallied from $71 to $139 off its recent bottom, compared to the S&P 500 which increased 75% from its recent lows. The stock has been able to beat the broader market in the last eleven months as steel and aluminum prices have jumped sharply over recent months following the announcement of a string of measures in the US, along with stimulus packages announced in other economies to keep businesses afloat. In addition, the gradual lifting of the lockdowns and successful vaccine rollout has led to expectations of steel prices remaining strong. The stock is currently at its all-time high. China’s recent announcement of cutting its crude steel production took a toll on steel companies’ stocks in the beginning of 2021. We believe, with steel capacity utilization expected to take longer to reach its pre-Covid levels, the market has been too exuberant and RS stock will likely see a drop in the near term. Our dashboard Buy Or Fear Reliance Steel & Aluminum Stock provides the key numbers behind our thinking.
Though RS stock suffered following the outbreak of the pandemic in early 2020, it recovered in the second half and ended the year at its December 2019 level. The stock price increased despite revenues dropping 20% in 2020. The effect of lower revenue was exacerbated by deterioration in profitability as margins declined from 6.4% in 2019 to 4.2% in 2020. This led earnings per share (EPS) to drop by 45% in a year. Despite deteriorated financials, RS’ stock rise in 2020 was justified by almost a 90% rise in the company’s P/E multiple, which went up from 11x in 2019 to 21x in 2020. This was because the market expected the company to recover quickly after the crisis as faster economic recovery would lead to higher steel and aluminum demand. The P/E multiple went up further in 2021 and currently stands at 24x. We believe stabilization of steel prices will mellow the market’s enthusiasm and the P/E multiple will likely drop to around 20x in the near term.
Outlook
The global spread of coronavirus led to lockdown in various cities across the globe, which affected industrial and economic activity. Lower steel demand from construction and automobile players, led to a drop in global steel prices recently, which had already declined due to the ongoing US-China trade war. This was reflected in the company’s Q2 and Q3 2020 results. RS’ total revenues saw a y-o-y drop of 30% and 22% in Q2 and Q3 2020, respectively. This was mainly due to lower shipments and the shutdown affected steel demand in the economy.
However, with the lifting of lockdowns, and as global economies open up, steel demand is rising and is expected to remain strong while supply constraints will also decline, leading to a rise in steel shipments. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. The US raw steel capacity utilization for the week ending 20th February 2021 was 77%, which is lower than 81% recorded in the prior year period. However, this is an improvement over the 51% utilization in the beginning of May 2020, which indicates that there are signs of a rebound in activity in the steel sector. Expectations of revenue and earnings rising in 2021 and with investors’ focus shifting to the 2021 and 2022 numbers, RS’ stock has seen a formidable rise over recent months. But China’s recent announcement of cutting down on crude steel production has made the global steel and iron ore markets volatile recently. We believe that the market has been too enthusiastic about the stock and that any further major rise in RS stock looks unlikely anytime soon. In fact, until the impact of China’s lower production becomes clear, RS stock is likely to remain volatile and could even see a drop of close to 10%.
While RS stock may have moved, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We believe, with steel capacity utilization expected to take longer to reach its pre-Covid levels, the market has been too exuberant and RS stock will likely see a drop in the near term. This was because the market expected the company to recover quickly after the crisis as faster economic recovery would lead to higher steel and aluminum demand. For example, you’ll be surprised how how the stock valuation for Compass Minerals vs Southwest Gas shows a disconnect with their relative operational growth.
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China’s recent announcement of cutting its crude steel production took a toll on steel companies’ stocks in the beginning of 2021. However, with the lifting of lockdowns, and as global economies open up, steel demand is rising and is expected to remain strong while supply constraints will also decline, leading to a rise in steel shipments. But China’s recent announcement of cutting down on crude steel production has made the global steel and iron ore markets volatile recently.
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China’s recent announcement of cutting its crude steel production took a toll on steel companies’ stocks in the beginning of 2021. Lower steel demand from construction and automobile players, led to a drop in global steel prices recently, which had already declined due to the ongoing US-China trade war. However, with the lifting of lockdowns, and as global economies open up, steel demand is rising and is expected to remain strong while supply constraints will also decline, leading to a rise in steel shipments.
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China’s recent announcement of cutting its crude steel production took a toll on steel companies’ stocks in the beginning of 2021. Despite deteriorated financials, RS’ stock rise in 2020 was justified by almost a 90% rise in the company’s P/E multiple, which went up from 11x in 2019 to 21x in 2020. Expectations of revenue and earnings rising in 2021 and with investors’ focus shifting to the 2021 and 2022 numbers, RS’ stock has seen a formidable rise over recent months.
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1080.0
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2021-03-03 00:00:00 UTC
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Noteworthy Wednesday Option Activity: SPNS, AA, MIK
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AA
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-spns-aa-mik-2021-03-03
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Sapiens International Corp NV (Symbol: SPNS), where a total of 2,197 contracts have traded so far, representing approximately 219,700 underlying shares. That amounts to about 179.7% of SPNS's average daily trading volume over the past month of 122,240 shares. Especially high volume was seen for the $35 strike call option expiring July 16, 2021, with 796 contracts trading so far today, representing approximately 79,600 underlying shares of SPNS. Below is a chart showing SPNS's trailing twelve month trading history, with the $35 strike highlighted in orange:
Alcoa Corporation (Symbol: AA) options are showing a volume of 98,097 contracts thus far today. That number of contracts represents approximately 9.8 million underlying shares, working out to a sizeable 154.1% of AA's average daily trading volume over the past month, of 6.4 million shares. Especially high volume was seen for the $30 strike call option expiring May 21, 2021, with 15,169 contracts trading so far today, representing approximately 1.5 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $30 strike highlighted in orange:
And Michaels Companies Inc (Symbol: MIK) options are showing a volume of 55,293 contracts thus far today. That number of contracts represents approximately 5.5 million underlying shares, working out to a sizeable 141.9% of MIK's average daily trading volume over the past month, of 3.9 million shares. Particularly high volume was seen for the $22.50 strike call option expiring March 19, 2021, with 19,516 contracts trading so far today, representing approximately 2.0 million underlying shares of MIK. Below is a chart showing MIK's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
For the various different available expirations for SPNS options, AA options, or MIK options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $30 strike call option expiring May 21, 2021, with 15,169 contracts trading so far today, representing approximately 1.5 million underlying shares of AA. Below is a chart showing SPNS's trailing twelve month trading history, with the $35 strike highlighted in orange: Alcoa Corporation (Symbol: AA) options are showing a volume of 98,097 contracts thus far today. That number of contracts represents approximately 9.8 million underlying shares, working out to a sizeable 154.1% of AA's average daily trading volume over the past month, of 6.4 million shares.
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Below is a chart showing SPNS's trailing twelve month trading history, with the $35 strike highlighted in orange: Alcoa Corporation (Symbol: AA) options are showing a volume of 98,097 contracts thus far today. That number of contracts represents approximately 9.8 million underlying shares, working out to a sizeable 154.1% of AA's average daily trading volume over the past month, of 6.4 million shares. Especially high volume was seen for the $30 strike call option expiring May 21, 2021, with 15,169 contracts trading so far today, representing approximately 1.5 million underlying shares of AA.
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Especially high volume was seen for the $30 strike call option expiring May 21, 2021, with 15,169 contracts trading so far today, representing approximately 1.5 million underlying shares of AA. Below is a chart showing SPNS's trailing twelve month trading history, with the $35 strike highlighted in orange: Alcoa Corporation (Symbol: AA) options are showing a volume of 98,097 contracts thus far today. That number of contracts represents approximately 9.8 million underlying shares, working out to a sizeable 154.1% of AA's average daily trading volume over the past month, of 6.4 million shares.
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Below is a chart showing MIK's trailing twelve month trading history, with the $22.50 strike highlighted in orange: For the various different available expirations for SPNS options, AA options, or MIK options, visit StockOptionsChannel.com. Below is a chart showing SPNS's trailing twelve month trading history, with the $35 strike highlighted in orange: Alcoa Corporation (Symbol: AA) options are showing a volume of 98,097 contracts thus far today. That number of contracts represents approximately 9.8 million underlying shares, working out to a sizeable 154.1% of AA's average daily trading volume over the past month, of 6.4 million shares.
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1081.0
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2021-03-03 00:00:00 UTC
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Why Alcoa Stock Just Popped
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-just-popped-2021-03-03
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nan
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nan
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What happened
Alcoa (NYSE: AA) stock moved higher in Wednesday morning trading -- up 6.2% as of 10:15 a.m. EST -- after investment banker Goldman Sachs pulled a complete 180, opinion-wise, on the aluminum metals giant.
In an upgrade today, Goldman reversed its opinion from sell to buy, and added $13 to its price target on Alcoa shares, which it says should hit $32 within a year.
Image source: Getty Images.
So what
Despite reporting negative earnings when calculated according to generally accepted accounting principles (GAAP) for two years running, Alcoa has generated positive free cash flow from its business in each of the past four years. Nevertheless, up until today, Goldman worried that Alcoa was producing "weaker FCF generation relative to peers," reports StreetInsider.com today, and feared "the higher-cost nature of AA's aluminum assets relative to its bauxite/alumina portfolio" would continue to be a drag on the stock.
Today, however, Goldman forecasts that aluminum prices will rise from $2,300 to $2,500 to $2,750 per ton over the next three years -- well ahead of what other analysts are predicting.
Now what
Now what does that mean for Alcoa going forward? Higher aluminum prices imply more free cash flow for Alcoa, rather than "weaker FCF generation relative to peers." And with extra cash to work with, Goldman anticipates that deleveraging will accelerate. That means Alcoa, which at last report had $1.6 billion in cash on its balance sheet, but $2.6 billion in debt, should be able to whittle away at its debt load and bring those numbers more into balance.
Goldman's a fan of that trend, and today, other investors seem to agree.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Alcoa (NYSE: AA) stock moved higher in Wednesday morning trading -- up 6.2% as of 10:15 a.m. EST -- after investment banker Goldman Sachs pulled a complete 180, opinion-wise, on the aluminum metals giant. So what Despite reporting negative earnings when calculated according to generally accepted accounting principles (GAAP) for two years running, Alcoa has generated positive free cash flow from its business in each of the past four years. Nevertheless, up until today, Goldman worried that Alcoa was producing "weaker FCF generation relative to peers," reports StreetInsider.com today, and feared "the higher-cost nature of AA's aluminum assets relative to its bauxite/alumina portfolio" would continue to be a drag on the stock.
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So what Despite reporting negative earnings when calculated according to generally accepted accounting principles (GAAP) for two years running, Alcoa has generated positive free cash flow from its business in each of the past four years. Nevertheless, up until today, Goldman worried that Alcoa was producing "weaker FCF generation relative to peers," reports StreetInsider.com today, and feared "the higher-cost nature of AA's aluminum assets relative to its bauxite/alumina portfolio" would continue to be a drag on the stock. What happened Alcoa (NYSE: AA) stock moved higher in Wednesday morning trading -- up 6.2% as of 10:15 a.m. EST -- after investment banker Goldman Sachs pulled a complete 180, opinion-wise, on the aluminum metals giant.
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Nevertheless, up until today, Goldman worried that Alcoa was producing "weaker FCF generation relative to peers," reports StreetInsider.com today, and feared "the higher-cost nature of AA's aluminum assets relative to its bauxite/alumina portfolio" would continue to be a drag on the stock. What happened Alcoa (NYSE: AA) stock moved higher in Wednesday morning trading -- up 6.2% as of 10:15 a.m. EST -- after investment banker Goldman Sachs pulled a complete 180, opinion-wise, on the aluminum metals giant. So what Despite reporting negative earnings when calculated according to generally accepted accounting principles (GAAP) for two years running, Alcoa has generated positive free cash flow from its business in each of the past four years.
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What happened Alcoa (NYSE: AA) stock moved higher in Wednesday morning trading -- up 6.2% as of 10:15 a.m. EST -- after investment banker Goldman Sachs pulled a complete 180, opinion-wise, on the aluminum metals giant. So what Despite reporting negative earnings when calculated according to generally accepted accounting principles (GAAP) for two years running, Alcoa has generated positive free cash flow from its business in each of the past four years. Nevertheless, up until today, Goldman worried that Alcoa was producing "weaker FCF generation relative to peers," reports StreetInsider.com today, and feared "the higher-cost nature of AA's aluminum assets relative to its bauxite/alumina portfolio" would continue to be a drag on the stock.
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1082.0
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2021-02-21 00:00:00 UTC
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COLUMN-Time to forget tariffs and reset U.S. aluminium policy: Andy Home
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AA
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https://www.nasdaq.com/articles/column-time-to-forget-tariffs-and-reset-u.s.-aluminium-policy%3A-andy-home-2021-02-21
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nan
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nan
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By Andy Home
LONDON, Feb 19 (Reuters) - The new United States administration seems in no rush to lift the aluminium and steel tariffs imposed by Donald Trump in 2018.
Indeed, one of Joe Biden's first acts was to reverse Trump's final-hour lifting of tariffs on aluminium from the United Arab Emirates (UAE).
"The available evidence indicates that imports from the UAE may still displace domestic production and thereby threaten to impair our national security," he said, true to the spirit of the original Section 232 investigations.
But three years of tariffs have done nothing to boost national aluminium security.
The country's primary metal production is falling again. Manufacturers have been hit with higher prices, even for metal that isn't imported, while the politics around tariffs have occasioned an unseemly spat with ally Canada.
Biden has the chance to reset the country's aluminium strategy and the World Trade Organization (WTO) has obligingly given him time to do so, deferring a ruling on the tariffs until at least the second half of this year.
A coalition of aluminium-producing nations is hoping the United States will rejoin the fight against China, described by the U.S. Aluminum Association as "the single biggest threat to U.S. aluminum".
RISE AND FALL
The explicit aim of the tariffs was to enable the dwindling number of U.S. aluminium smelters to operate profitably and reopen idled capacity.
Capacity utilisation had fallen to only 39% in 2017 and the ambition was to lift that to 80%.
Post-tariff restarts by Magnitude 7 Metals and Century Aluminum CENX.O helped to nudge the dial upwards and annualised production rose to 1.15 million tonnes at the end of 2018 from 750,000 tonnes a year earlier.
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity.
At the end of last year national annualised production had fallen to 920,000 tonnes and capacity utilisation to about 50%.
Equally significantly, there has been no sign of investment in new smelting capacity. The United States remains as dependent as ever on imports of primary metal.
Last year's imports of 3.5 million tonnes were down 11% on 2019, but the real driver was not tariffs, but rather the withdrawal of Russian producer Rusal 0486.HK from the U.S. market.
Russia was second only to Canada as a supplier to the United States until April 2018, when U.S. sanctions were imposed on Rusal and its owner Oleg Deripaska.
Although the sanctions were lifted in January 2019, it is clear that Rusal has defensively restructured its global sales. Russian imports have collapsed from 725,000 tonnes in 2017 to only 136,000 tonnes last year.
Shipments from Canada have filled the gap, with U.S. imports from its neighbour rising 10% in 2019.
BROKEN EXCLUSIONS
U.S. imports of semi-manufactured products dropped by a harder 20% last year. But here, too, the decline had less to do with tariffs than with the early-year COVID-19 demand collapse and targeted duties.
The United States imposed preliminary anti-dumping duties on imports of common alloy sheet from 18 countries in October last year, contributing to a 36% decline in imports under the "plate, sheet and strip" customs code.
Such product-specific duties have proved a lot more effective in stemming imports than the scattergun tariffs.
That's in part because of what the Aluminum Association has called a broken exclusions process.
"Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December.
If importers chose to use those exemptions to import tariff-free product, U.S. domestic demand would be zero for the next two years, he warned.
The number of exclusion requests for both aluminium and steel "now far exceeds 200,000 and is growing, and the process has been plagued by delays, questionable decisions and a complete lack of transparency", according to the Coalition of American Metal Manufacturers and Users (CAMMU).
CAMMU, a coalition of associations representing more than 30,000 companies and a million workers, is calling for President Biden to end steel and aluminium tariffs. The AA wants more "targeted trade enforcement".
Both think the new administration should, in the words of CAMMU, now focus on "re-engaging with our trading partners on a coordinated response to address the root cause of global oversupply in steel and aluminum: excess capacity in China".
BACK TO THE NEGOTIATING TABLE?
Donald Trump's decision to impose unilateral tariffs stopped in its tracks a multinational campaign to tackle China's over-production and massive exports of aluminium.
One of the parting shots of the Obama administration was the January 2017 filing of a complaint with the WTO, accusing China of illegal state support for its aluminium sector.
More ammunition has come from a 2019 OECD report, which found that subsidies were not uncommon along the aluminium value chain but that they were "most pronounced in China", conferring a cost advantage to Chinese producers and exporters of aluminium in semi-manufactured form.
The stage, in other words, is set for a government-to-government conversation with China, if the United States chooses to return to its place at the negotiating table.
The timing for renewed engagement could be highly propitious, given China's leadership is facing a tough trade-off between its new commitments to climate neutrality and a strategic industrial sector that remains overwhelmingly reliant on coal for its power.
However, a pivot back to the international stage is going to be difficult while tariffs remain in place on key negotiating partners such as the European Union and Canada.
Particularly the latter.
Last year's tariff tussle was political turbulence. The economic reality, as even the original Section 232 report noted, is that Canada "is highly integrated with the U.S. defense industrial base and considered a reliable supplier".
Canada has twice as many aluminium smelters as the United States and potentially room for more. U.S. national champion Alcoa is now operating more smelter capacity across the border than on its home turf.
If the United States is committed to maintaining domestic production, it may need to be more creative and borrow from the rare earths playbook, where the Department of Defense is providing direct funding.
A domestic rethink needs to be part of a broader reshaping of strategy on how best to achieve national aluminium security. Because the past three years have shown that tariffs aren't the solution.
US primary aluminium production is falling again despite tariffshttps://tmsnrt.rs/3u67jJX
Russia has withdrawn as a major aluminium supplier to the US markethttps://tmsnrt.rs/2NknG4U
(Editing by David Goodman)
((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
|
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
|
"Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. The AA wants more "targeted trade enforcement".
|
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
|
1083.0
|
2021-02-19 00:00:00 UTC
|
COLUMN-Time to forget tariffs and reset U.S. aluminium policy: Andy Home
|
AA
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https://www.nasdaq.com/articles/column-time-to-forget-tariffs-and-reset-u.s.-aluminium-policy%3A-andy-home-2021-02-19
|
nan
|
nan
|
By Andy Home
LONDON, Feb 19 (Reuters) - The new United States administration seems in no rush to lift the aluminium and steel tariffs imposed by Donald Trump in 2018.
Indeed, one of Joe Biden's first acts was to reverse Trump's final-hour lifting of tariffs on aluminium from the United Arab Emirates (UAE).
"The available evidence indicates that imports from the UAE may still displace domestic production and thereby threaten to impair our national security," he said, true to the spirit of the original Section 232 investigations.
But three years of tariffs have done nothing to boost national aluminium security.
The country's primary metal production is falling again. Manufacturers have been hit with higher prices, even for metal that isn't imported, while the politics around tariffs have occasioned an unseemly spat with ally Canada.
Biden has the chance to reset the country's aluminium strategy and the World Trade Organization (WTO) has obligingly given him time to do so, deferring a ruling on the tariffs until at least the second half of this year.
A coalition of aluminium-producing nations is hoping the United States will rejoin the fight against China, described by the U.S. Aluminum Association as "the single biggest threat to U.S. aluminum".
RISE AND FALL
The explicit aim of the tariffs was to enable the dwindling number of U.S. aluminium smelters to operate profitably and reopen idled capacity.
Capacity utilisation had fallen to only 39% in 2017 and the ambition was to lift that to 80%.
Post-tariff restarts by Magnitude 7 Metals and Century Aluminum CENX.O helped to nudge the dial upwards and annualised production rose to 1.15 million tonnes at the end of 2018 from 750,000 tonnes a year earlier.
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity.
At the end of last year national annualised production had fallen to 920,000 tonnes and capacity utilisation to about 50%.
Equally significantly, there has been no sign of investment in new smelting capacity. The United States remains as dependent as ever on imports of primary metal.
Last year's imports of 3.5 million tonnes were down 11% on 2019, but the real driver was not tariffs, but rather the withdrawal of Russian producer Rusal 0486.HK from the U.S. market.
Russia was second only to Canada as a supplier to the United States until April 2018, when U.S. sanctions were imposed on Rusal and its owner Oleg Deripaska.
Although the sanctions were lifted in January 2019, it is clear that Rusal has defensively restructured its global sales. Russian imports have collapsed from 725,000 tonnes in 2017 to only 136,000 tonnes last year.
Shipments from Canada have filled the gap, with U.S. imports from its neighbour rising 10% in 2019.
BROKEN EXCLUSIONS
U.S. imports of semi-manufactured products dropped by a harder 20% last year. But here, too, the decline had less to do with tariffs than with the early-year COVID-19 demand collapse and targeted duties.
The United States imposed preliminary anti-dumping duties on imports of common alloy sheet from 18 countries in October last year, contributing to a 36% decline in imports under the "plate, sheet and strip" customs code.
Such product-specific duties have proved a lot more effective in stemming imports than the scattergun tariffs.
That's in part because of what the Aluminum Association has called a broken exclusions process.
"Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December.
If importers chose to use those exemptions to import tariff-free product, U.S. domestic demand would be zero for the next two years, he warned.
The number of exclusion requests for both aluminium and steel "now far exceeds 200,000 and is growing, and the process has been plagued by delays, questionable decisions and a complete lack of transparency", according to the Coalition of American Metal Manufacturers and Users (CAMMU).
CAMMU, a coalition of associations representing more than 30,000 companies and a million workers, is calling for President Biden to end steel and aluminium tariffs. The AA wants more "targeted trade enforcement".
Both think the new administration should, in the words of CAMMU, now focus on "re-engaging with our trading partners on a coordinated response to address the root cause of global oversupply in steel and aluminum: excess capacity in China".
BACK TO THE NEGOTIATING TABLE?
Donald Trump's decision to impose unilateral tariffs stopped in its tracks a multinational campaign to tackle China's over-production and massive exports of aluminium.
One of the parting shots of the Obama administration was the January 2017 filing of a complaint with the WTO, accusing China of illegal state support for its aluminium sector.
More ammunition has come from a 2019 OECD report, which found that subsidies were not uncommon along the aluminium value chain but that they were "most pronounced in China", conferring a cost advantage to Chinese producers and exporters of aluminium in semi-manufactured form.
The stage, in other words, is set for a government-to-government conversation with China, if the United States chooses to return to its place at the negotiating table.
The timing for renewed engagement could be highly propitious, given China's leadership is facing a tough trade-off between its new commitments to climate neutrality and a strategic industrial sector that remains overwhelmingly reliant on coal for its power.
However, a pivot back to the international stage is going to be difficult while tariffs remain in place on key negotiating partners such as the European Union and Canada.
Particularly the latter.
Last year's tariff tussle was political turbulence. The economic reality, as even the original Section 232 report noted, is that Canada "is highly integrated with the U.S. defense industrial base and considered a reliable supplier".
Canada has twice as many aluminium smelters as the United States and potentially room for more. U.S. national champion Alcoa is now operating more smelter capacity across the border than on its home turf.
If the United States is committed to maintaining domestic production, it may need to be more creative and borrow from the rare earths playbook, where the Department of Defense is providing direct funding.
A domestic rethink needs to be part of a broader reshaping of strategy on how best to achieve national aluminium security. Because the past three years have shown that tariffs aren't the solution.
US primary aluminium production is falling again despite tariffshttps://tmsnrt.rs/3u67jJX
Russia has withdrawn as a major aluminium supplier to the US markethttps://tmsnrt.rs/2NknG4U
(Editing by David Goodman )
((andy.home@thomsonreuters.com, 44-207-542-4412 and on Twitter https://twitter.com/AndyHomeMetals))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
|
However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
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"Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. The AA wants more "targeted trade enforcement".
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However, Alcoa AA.N announced in April last year that it was mothballing its Ferndale smelter in the state of Washington with the loss of 230,000 tonnes of production capacity. "Through Dec. 3, the (Commerce) Department has granted this year alone Section 232 exclusions that cover 8.2 billion pounds of can sheet – more than 263% of the total annual market demand for can sheet in the United States," AA President and CEO Tom Dobbins wrote to outgoing Commerce Secretary Wilbur Ross in December. The AA wants more "targeted trade enforcement".
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1084.0
|
2021-02-11 00:00:00 UTC
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April 1st Options Now Available For Alcoa (AA)
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AA
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https://www.nasdaq.com/articles/april-1st-options-now-available-for-alcoa-aa-2021-02-11
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $21.00 strike price has a current bid of 71 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $21.00, but will also collect the premium, putting the cost basis of the shares at $20.29 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $21.59/share today.
Because the $21.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.38% return on the cash commitment, or 25.21% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $21.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $22.50 strike price has a current bid of 69 cents. If an investor was to purchase shares of AA stock at the current price level of $21.59/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $22.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.41% if the stock gets called away at the April 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $22.50 strike highlighted in red:
Considering the fact that the $22.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.20% boost of extra return to the investor, or 23.83% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $21.59) to be 82%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $22.50 strike highlighted in red: Considering the fact that the $22.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the April 1st expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $22.50 strike highlighted in red: Considering the fact that the $22.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $22.50 strike highlighted in red: Considering the fact that the $22.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $22.50 strike highlighted in red: Considering the fact that the $22.50 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the April 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new April 1st contracts and identified one put and one call contract of particular interest.
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1085.0
|
2021-02-11 00:00:00 UTC
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Rio Tinto beefs up dispute resolution team for Guinean bauxite
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AA
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https://www.nasdaq.com/articles/rio-tinto-beefs-up-dispute-resolution-team-for-guinean-bauxite-2021-02-11
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nan
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nan
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MELBOURNE, Feb 12 (Reuters) - Rio Tinto Ltd RIO.AX, RIO.L said on Friday it has provided expertise to its Guinean partner to help settle a dispute with local communities over resettlement for a bauxite mine.
Guinean villagers in communities around the mine filed a complaint in 2019 with International Finance Corp, a global development institution linked to the World Bank, alleging contraventions by miner Compagnie des Bauxites de Guinée SA (CBG) of its commitments around resettlement and pollution.
Bauxite producer CBG is 51% owned by consortium Halco Mining Inc and 49% owned by the Guinean government. Rio Tinto and Alcoa Corp AA.N each hold 45% of Halco, while Dadco Investments holds the rest.
Rio said in a statement it had offered CBG a Guinea-based Africa specialist and a manager with experience on resettlement and human rights, to encourage it to work towards an outcome aligned with international standards.
The global miner is battling to restore its reputation around how it manages human rights after it destroyed two ancient rock shelters sacred to Australian Aboriginal people for an iron ore mine last May.
Rio, which has board representation on Halco and CBG as well as various shareholder oversight committees, said the two parties reached agreement in December 2020 on ground rules for the mediation process.
In 2018, Human Rights Watch found that CBG and another bauxite producer routinely displaced rural residents from their land to build mines, roads and other infrastructure.
(Reporting by Melanie Burton; editing by Richard Pullin)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rio Tinto and Alcoa Corp AA.N each hold 45% of Halco, while Dadco Investments holds the rest. Guinean villagers in communities around the mine filed a complaint in 2019 with International Finance Corp, a global development institution linked to the World Bank, alleging contraventions by miner Compagnie des Bauxites de Guinée SA (CBG) of its commitments around resettlement and pollution. Rio said in a statement it had offered CBG a Guinea-based Africa specialist and a manager with experience on resettlement and human rights, to encourage it to work towards an outcome aligned with international standards.
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Rio Tinto and Alcoa Corp AA.N each hold 45% of Halco, while Dadco Investments holds the rest. MELBOURNE, Feb 12 (Reuters) - Rio Tinto Ltd RIO.AX, RIO.L said on Friday it has provided expertise to its Guinean partner to help settle a dispute with local communities over resettlement for a bauxite mine. Bauxite producer CBG is 51% owned by consortium Halco Mining Inc and 49% owned by the Guinean government.
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Rio Tinto and Alcoa Corp AA.N each hold 45% of Halco, while Dadco Investments holds the rest. MELBOURNE, Feb 12 (Reuters) - Rio Tinto Ltd RIO.AX, RIO.L said on Friday it has provided expertise to its Guinean partner to help settle a dispute with local communities over resettlement for a bauxite mine. Guinean villagers in communities around the mine filed a complaint in 2019 with International Finance Corp, a global development institution linked to the World Bank, alleging contraventions by miner Compagnie des Bauxites de Guinée SA (CBG) of its commitments around resettlement and pollution.
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Rio Tinto and Alcoa Corp AA.N each hold 45% of Halco, while Dadco Investments holds the rest. MELBOURNE, Feb 12 (Reuters) - Rio Tinto Ltd RIO.AX, RIO.L said on Friday it has provided expertise to its Guinean partner to help settle a dispute with local communities over resettlement for a bauxite mine. Guinean villagers in communities around the mine filed a complaint in 2019 with International Finance Corp, a global development institution linked to the World Bank, alleging contraventions by miner Compagnie des Bauxites de Guinée SA (CBG) of its commitments around resettlement and pollution.
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1086.0
|
2021-01-28 00:00:00 UTC
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March 12th Options Now Available For Alcoa (AA)
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AA
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https://www.nasdaq.com/articles/march-12th-options-now-available-for-alcoa-aa-2021-01-28
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nan
|
nan
|
Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 12th contracts and identified one put and one call contract of particular interest.
The put contract at the $16.00 strike price has a current bid of 37 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $16.00, but will also collect the premium, putting the cost basis of the shares at $15.63 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $18.75/share today.
Because the $16.00 strike represents an approximate 15% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 76%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.31% return on the cash commitment, or 19.63% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $16.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $23.50 strike price has a current bid of 8 cents. If an investor was to purchase shares of AA stock at the current price level of $18.75/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $23.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 25.76% if the stock gets called away at the March 12th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red:
Considering the fact that the $23.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 75%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.43% boost of extra return to the investor, or 3.62% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 160%, while the implied volatility in the call contract example is 154%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $18.75) to be 82%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the March 12th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 12th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the March 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 12th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 12th contracts and identified one put and one call contract of particular interest. Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 25% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the March 12th expiration.
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1087.0
|
2021-01-26 00:00:00 UTC
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Alcoa Stock Drops 18% In A Week – What Should You Know?
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AA
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https://www.nasdaq.com/articles/alcoa-stock-drops-18-in-a-week-what-should-you-know-2021-01-27
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nan
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nan
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Alcoa stock (NYSE: AA) dropped 18% in just the last one week. What’s somewhat baffling, at first, is that this happened after the company beat analysts’ expectations in the recently announced Q4 and FY2020 results. by a huge margin. The company reported EPS of $0.26, more than 2x consensus estimate of $0.11. This is also a significant improvement from the Q3 2020 loss of $1.17/share. Alcoa revenues also came in at $2.39 billion in Q4 2020, slightly better than expectations. But what took the stock down was the guidance and management commentary which was cautious post the results. The company expects increasing cost and weak bauxite pricing to be important headwinds which could take a toll on earnings in the coming quarters. But will Alcoa’s stock continue its upward trajectory over the coming weeks, or is a correction in the stock more likely?
According to the Trefis Machine Learning Engine, which identifies trends in a company’s historical stock price data, returns for Alcoa stock average close to -1.6% in the next one-month (21 trading days) period after experiencing an 18% drop over the previous one-week (5 trading days) period. Notably, though, the stock is likely to underperform the S&P500 over the next month, with an expected return which would be 3.5% lower compared to the S&P500.
But how would these numbers change if you are interested in holding Alcoa stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Alcoa stock chances of a rise after a fall and vice-versa. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
MACHINE LEARNING ENGINE – try it yourself:
IF Alcoa stock moved by -5% over 5 trading days, THEN over the next 21 trading days, Alcoa stock moves an average of 0.8 percent, which implies a return which is 0.5 percent lower than that of the S&P500.
More importantly, there is a 49% probability of a positive return over the next 21 trading days and 44% probability of a positive excess return after a -5% change over 5 trading days.
Some Fun Scenarios, FAQs & Making Sense of Alcoa Stock Movements:
Question 1: Is the average return for Alcoa stock higher after a drop?
Answer:
Consider two situations,
Case 1: Alcoa stock drops by -5% or more in a week
Case 2: Alcoa stock rises by 5% or more in a week
Is the average return for Alcoa stock higher over the subsequent month after Case 1 or Case 2?
AA stock fares better after Case 2, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.1% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how Alcoa stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold Alcoa stock, the expectation is over time the near term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
Question 3: What about the average return after a rise if you wait for a while?
Answer:
Generally the average return for a stock after a rise is lower than after a fall. Similarly, average return after a fall is likely to be more than after a rise. Interestingly, Alcoa stock seems to be an exception to this observation. Historical data suggests that even after rising, Alcoa stock largely continues to trend higher. The below table summarizes this observation.
AA’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for Alcoa stock by changing the inputs in the charts above. As per Trefis, Alcoa’s valuation gives us a fair price estimate of $23 per share for AA’s stock.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa stock (NYSE: AA) dropped 18% in just the last one week. AA stock fares better after Case 2, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.1% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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Alcoa stock (NYSE: AA) dropped 18% in just the last one week. AA stock fares better after Case 2, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.1% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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Alcoa stock (NYSE: AA) dropped 18% in just the last one week. AA stock fares better after Case 2, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.1% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while?
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AA stock fares better after Case 2, with an average return of 3.1% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 5.1% for Case 2. For AA stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500: Question 3: What about the average return after a rise if you wait for a while? Alcoa stock (NYSE: AA) dropped 18% in just the last one week.
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1088.0
|
2021-01-22 00:00:00 UTC
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Alcoa Stock Getting Very Oversold
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AA
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https://www.nasdaq.com/articles/alcoa-stock-getting-very-oversold-2021-01-22
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nan
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nan
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $19.17 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In the case of Alcoa Corporation, the RSI reading has hit 29.1 — by comparison, the universe of metals and mining stocks covered by Metals Channel currently has an average RSI of 51.3, the RSI of Spot Gold is at 51.2, and the RSI of Spot Silver is presently 53.2. A bullish investor could look at AA's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
Looking at a chart of one year performance (below), AA's low point in its 52 week range is $5.16 per share, with $26.20 as the 52 week high point — that compares with a last trade of $19.34. Alcoa Corporation shares are currently trading down about 3.3% on the day.
Click here to find out what 9 other oversold metals stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A bullish investor could look at AA's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $19.17 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $5.16 per share, with $26.20 as the 52 week high point — that compares with a last trade of $19.34.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $19.17 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $5.16 per share, with $26.20 as the 52 week high point — that compares with a last trade of $19.34. A bullish investor could look at AA's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $19.17 per share. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $5.16 per share, with $26.20 as the 52 week high point — that compares with a last trade of $19.34. A bullish investor could look at AA's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Alcoa Corporation (Symbol: AA) entered into oversold territory, changing hands as low as $19.17 per share. A bullish investor could look at AA's 29.1 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Looking at a chart of one year performance (below), AA's low point in its 52 week range is $5.16 per share, with $26.20 as the 52 week high point — that compares with a last trade of $19.34.
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1089.0
|
2021-01-21 00:00:00 UTC
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Why Alcoa Stock Fell as Much as 11% Today
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AA
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https://www.nasdaq.com/articles/why-alcoa-stock-fell-as-much-as-11-today-2021-01-21
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nan
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nan
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What happened
Shares of aluminum producer Alcoa (NYSE: AA) headed lower in Thursday morning trading, and were down by 11% as of 11:48 a.m. EST. That might come as something of a surprise, given the company's fourth-quarter results. But there was more to its latest earnings report than meets the eye.
So what
The interesting thing about Alcoa's fourth-quarter 2020 financial results was that the company handily beat analysts' expectations. It posted earnings per share of $0.26 versus Wall Street's call for $0.11, which is a huge difference. Equally important, it was a notable rebound from the company's third-quarter adjusted loss of $1.17 per share. All in, it appears that Alcoa's business has started to recover from the pandemic-driven slump it fell into earlier in 2020.
Image source: Getty Images.
An earnings beat like that would normally lead to a stock price increase, not a big decline. The problem is that in the release and during Alcoa's Q4 earnings conference call, management provided a less than upbeat outlook for the current quarter. The company expects increasing costs and weak bauxite pricing to be notable headwinds. These factors could constrain earnings in a meaningful way. So, despite the good Q4 performance, investors took a more cautious approach and sold off the shares.
Now what
Aluminum and related products are commodities that vary in price based on the supply and demand situation. Producing aluminum, meanwhile, is a complex and, at times, expensive process. These issues are simply part of Alcoa's business and there's nothing that investors can do about them. Thus, big ups and downs in its stock price aren't exactly uncommon. Conservative investors might want to err on the side of caution and avoid this highly cyclical name.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of aluminum producer Alcoa (NYSE: AA) headed lower in Thursday morning trading, and were down by 11% as of 11:48 a.m. EST. So what The interesting thing about Alcoa's fourth-quarter 2020 financial results was that the company handily beat analysts' expectations. The problem is that in the release and during Alcoa's Q4 earnings conference call, management provided a less than upbeat outlook for the current quarter.
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What happened Shares of aluminum producer Alcoa (NYSE: AA) headed lower in Thursday morning trading, and were down by 11% as of 11:48 a.m. EST. That might come as something of a surprise, given the company's fourth-quarter results. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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What happened Shares of aluminum producer Alcoa (NYSE: AA) headed lower in Thursday morning trading, and were down by 11% as of 11:48 a.m. EST. 10 stocks we like better than Alcoa When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Alcoa wasn't one of them!
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What happened Shares of aluminum producer Alcoa (NYSE: AA) headed lower in Thursday morning trading, and were down by 11% as of 11:48 a.m. EST. So what The interesting thing about Alcoa's fourth-quarter 2020 financial results was that the company handily beat analysts' expectations. The company expects increasing costs and weak bauxite pricing to be notable headwinds.
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2021-01-21 00:00:00 UTC
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AA March 5th Options Begin Trading
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https://www.nasdaq.com/articles/aa-march-5th-options-begin-trading-2021-01-21
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Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the March 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $17.00 strike price has a current bid of 29 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.00, but will also collect the premium, putting the cost basis of the shares at $16.71 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $20.51/share today.
Because the $17.00 strike represents an approximate 17% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.71% return on the cash commitment, or 14.48% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $17.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $21.50 strike price has a current bid of 12 cents. If an investor was to purchase shares of AA stock at the current price level of $20.51/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $21.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.41% if the stock gets called away at the March 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $21.50 strike highlighted in red:
Considering the fact that the $21.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.59% boost of extra return to the investor, or 4.97% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $20.51) to be 82%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the March 5th expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the March 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 5th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the March 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 5th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $21.50 strike highlighted in red: Considering the fact that the $21.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the March 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new March 5th contracts and identified one put and one call contract of particular interest.
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2021-01-21 00:00:00 UTC
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Alcoa Corporation (AA) Q4 2020 Earnings Call Transcript
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https://www.nasdaq.com/articles/alcoa-corporation-aa-q4-2020-earnings-call-transcript-2021-01-21
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Image source: The Motley Fool.
Alcoa Corporation (NYSE: AA)
Q4 2020 Earnings Call
Jan 20, 2021, 5:00 p.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good afternoon and welcome to the Alcoa Corporation Fourth Quarter 2020 Earnings Presentation and Conference Call. [Operator Instructions]
I would now like to turn the conference over to James Dwyer, Vice President of Investor Relations. Please go ahead.
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James Dwyer -- Vice President of Investor Relations
Thank you and good day, everyone. I'm joined today by Roy Harvey, Alcoa Corporation President and Chief Executive Officer and William Oplinger, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Roy and Bill.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the Company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.
In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA. Finally, as previously announced, the earnings release and slide presentation are available on our website.
With that, here's Roy.
Roy C. Harvey -- President and Chief Executive Officer
Thank you, Jim, and thanks to everyone for joining this call today. Obviously, 2020 was a historic year with the world united in fighting through the challenges associated with the global pandemic. Throughout this turbulent time however, we stayed true to our Alcoa values and accomplished much in an unprecedented year. We focused on our people, making sure we took every possible steps to protect our employees and contractors and to support the communities where we operate. Due to teamwork across Alcoa, we not only kept our operations running efficiently, we improved our processes and made our Company even stronger. Bill will discuss the specific financial results shortly, but it all culminated with a solid fourth quarter.
We had a higher sequential quarterly adjusted EBITDA and we also recognized quarterly improvement in revenue. Both prices and demand improved in the fourth quarter including for value-add aluminum products. And for the full year, we made significant progress in improving our cost structure with our multi-year strategy and we will highlight many of those achievements during this call today.
First, however, I would like to address safety. Despite so many accomplishments in 2020 and as reported last April, we sadly did not achieve our most important objective. A contracted worker died on February 10th after sustaining on-the-job injuries at our Pocos de Caldas facility in Brazil. This was an unacceptable tragedy and we'll work to make sure it does not recur. This tragic accident demonstrates that we must be ever vigilant with our safety practices and must remain focused on each and every task at hand.
Safety is embedded in the three Alcoa core values you see on the left hand of this slide. And those three simple values continue to guide us. In fact, our response to the pandemic demonstrated how a relentless commitment to these values can deliver positive impact. Not only did we sustain our operations, we also set annual production records in both our Bauxite and Alumina segments. In Aluminum we continued to improve our cost structure and successfully completed the full restart of the ABI smelter in Becancour, Quebec and the curtailment of the Intalco smelter in Washington State. Together these two actions resulted in an $86 million improvement in EBITDA in 2020 over 2019.
Importantly 2020 was a year with significant accomplishments across Alcoa. We started the year with the full implementation of our new operating model, which reduced overhead costs and improved overall efficiency. Before we encountered the impacts of pandemic, we had already put in place aggressive targets for non-core asset sales over a 12 to 18-month period and year-over-year improvements for working capital and productivity in 2020. With the economic uncertainty created by this pandemic, we also implemented additional actions to generate and protect cash. We finished the year meeting those targets. We met our combined objective on working capital and productivity and our announced non-core asset sales put us at the top of our expected range. Those and other actions during the year helped us exceed our target of $900 million in cash actions.
In November 2020 we announced the divestiture of our single rolling mill located in Indiana at Warrick Operations in a $670 million transaction expected to close in March of this year. Finally, on this slide, our strategic priority to advance sustainably provides many new opportunities and we will talk later today about how we are leveraging our industry-leading performance to succeed in a marketplace expecting and demanding strong ESG performance.
So with that, Bill will now detail the results.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Roy. The 2020 fourth quarter saw revenues exceed third-quarter levels on stronger aluminum prices. Revenues were up $27 million compared to the prior quarter and lagged to the fourth quarter of 2019 by $44 million on lower alumina prices. Fourth quarter earnings improved versus both the third quarter and year-ago quarter, either including or excluding special items. Special items in the fourth quarter of $53 million primarily related to the US pension lump sum settlements.
The net loss attributable to Alcoa Corporation improved $45 million to $4 million, up $0.24 per share and was $1.61 per share better than the prior year. The adjusted net income of $49 million or $0.26 per share was $1.43 per share better than the prior quarter and $0.57 per share higher than the prior-year fourth quarter. Also on an adjusted basis compared to the previous quarter EBITDA, excluding special items, improved $77 million to $361 million and improved $15 million compared to the fourth quarter of 2019.
For the full year, revenues declined $1.1 billion to $9.3 billion on lower alumina and aluminum prices, while the net loss attributable to Alcoa improved $955 million to $170 million primarily due to lower restructuring charges. Adjusted net loss for full year 2020 was $215 million, down $31 million from 2019.
Let's look closer at factors driving adjusted EBITDA in the fourth quarter. Adjusted EBITDA, excluding special items, increased $77 million in the fourth quarter with $39 million higher earnings in the segments and $40 million from favorable inter-segment eliminations. Overall favorable market price impacts totaled $92 million where higher metal and alumina prices were partially offset by a weaker US dollar. All other factors combined were unfavorable $15 million.
Energy costs were higher in smelters in Norway and Spain and in Brazil refineries. In price mix, lower CBG bauxite prices and unfavorable Alumina segment contract mix outweighed improved product mix in the Aluminum segment. Volume was unfavorable primarily due to lower CBG [Indecipherable] third-party bauxite shipments.
Production costs were up sequentially in the Aluminum segment where labor costs increased after summer holidays, increased pot relining and timing of maintenance activities and Warrick power plant outage and related costs. Production costs were also up slightly in Alumina on higher bauxite freight costs and in Bauxite on maintenance timing. Other impacts totaled $54 million sequentially and reflect the impact of many of our strategic key actions. The Intalco curtailment contributed $10 million to EBITDA improvement and $12 million was related to the Section 232 tariff, refunds and reversals. Trading activities and equity earnings and non-operated mines in Bauxite contributed $21 million.
Moving to cash. Fourth quarter liquidity remained exceptional with $1.6 billion in cash on the balance sheet. Our year-over-year cash balance increased $728 million primarily due to the net proceeds of $736 million from our July debt issuance. Sequentially, our cash balance decreased $129 million. At the end of the full [Phonetic] we contributed $250 million to our US pension plans. That contribution made in late December instead of in early January saved us $6 million in pension related costs.
In 2020 sources of cash totaled $2.2 billion and uses of cash totaled $1.5 billion. Removing the debt proceeds of $736 million, year to date sources of cash were $1.5 billion with an $8 million of 2020 uses, a reflection of solid operating performance and our successful $900 million cash actions program.
Given our substantial cash balance at year-end and the expected influx of cash on closing the Warrick rolling mill sale later this quarter, let's review the framework that guides our capital allocation decisions. The capital allocation framework has three major components. First, it starts with the target cash balance of $1 billion, which as our history has shown can be higher or lower than target based on market condition. In 2020 it has been prudent to carry more cash than our target. Second, our next use of cash is to sustain and improve our existing operations with capital expenditures. Our 2020 capital expenditures totaled $353 million, but we expect an increase to roughly $425 million in 2021 as we increase return-seeking capital spending on high-return small projects and increase sustaining capital for major mine moves and residue management projects. Third, we expect to use excess cash to maximize value creation in four ways not listed in any priority order. We target adjusted proportional net debt of $2 billion to $2.5 billion within the next three years. That target includes our pension and OPEB net liability and we believe it generates our optimal WACC. Returning cash to stockholders, we have a buyback authorization in place. Third, transforming the portfolio to lower cost to improve earnings through the cycle while improving its sustainability profile and investing in medium-sized value-creating projects. We will decide between these four options as we continue to review our cash balance and market conditions.
Now let's look at other financial metrics. Full year 2020 free cash flow less non-controlling interest distributions was negative $142 million and includes our recent $250 million US pension funding. Working capital management has been solid. Days working capital improved four days year-over-year on lower inventories and higher payables and increased one day sequentially to 23 days due to higher receivables. Our key balance sheet metric proportional adjusted net debt in 2020 increased by $105 million to $3.5 billion, primarily a result of lower pension and OPEB discount rates. While our pension net liability remained at $1.5 billion, our OPEB liability increased to $900 million.
Turning to our $900 million cash actions program. Early in 2020, we announced a comprehensive cash program totaling $900 million. It was a successful cornerstone of our response to conserve cash during 2020 volatile market conditions and had three components. The first component was the 2020 cash impacts arising from our three key strategic actions announced in October of 2019. The new operating model saved roughly $45 million in overhead costs and our entire business benefited from increased operational and commercial focus. We sold the Gum Springs treatment facility for $250 million and received the first $200 million early this year with another $50 million to be received after certain conditions are met.
While we announced the sale of the Warrick rolling mill for $670 million, the cash of $587 million from the sale will be received at closing slated for the first quarter of this year. We completed the Intalco curtailment last quarter and saved $21 million.
The second component was the 2020 programs announced last February, comprised of lower production costs and working capital reduction together targeting $175 million to $200 million of improvements. Despite recent higher sales prices increasing receivables, we achieved $184 million of the target. Without the $82 million of higher working capital related to union actions in San Ciprian, we would have achieved $266 million in working capital and production cost improvements.
Third component was COVID-19 specific responses. We exceeded our reduction targets for capital expenditures and ARO and environmental spending by a combined $35 million and were within $5 millions of the target for other spending. While we had initially planned on taking advantage of the CARES Act by deferring pension contributions of $220 million to early January of 2021, we made a $250 million contribution late in December, which generated a $6 million refund of PBGC premiums.
Now let's review the outlook for 2021. This outlook reflects an expected continued progression to less volatile and improved markets. As we've noted in recent quarters, our outlook could be impacted by changes in market conditions, especially impacts related to the ongoing COVID-19 pandemic. Also remember that the Warrick rolling mill has triggered held for sale accounting. So in the first quarter while the income statement treatment is unchanged, the Warrick rolling mill assets and liabilities are all classified as current assets and liabilities. Currently for 2021 we expect increased shipments in the Bauxite and Alumina segments and lower shipments in the Aluminum segment, primarily a result of the upcoming sale of the Warrick rolling mill and the completed Intalco curtailment.
For EBITDA impacts outside the segments, we expect transformation costs of $65 million higher than the cash conserving result in 2020. We expect other corporate costs to increase slightly to $120 million, partially due to currency impacts. Below the EBITDA line, we expect depreciation to increase to $675 million on capitalization of major projects. In currency movements the first quarter is expected to be roughly $15 million higher than the rest of the year. Non-operating pension and OPEB expense is expected to improve approximately $33 million in 2021 due to lower interest costs in the plan. With the current capital structure we expect interest expense to increase to approximately $165 million. Our operational tax rate was 130% last year with expense of $226 million. The expense and rate will vary with market conditions and jurisdictional tax profitability.
Reviewing some of the key cash items. We expect pension and OPEB funding to be approximately $315 million assuming no use of the available $500 million pre-funding balance. Return seeking capital expenditures will increase slightly to roughly $50 million, up from the $35 million in 2020. Sustaining capital expenditures at approximately $375 million reflect the large but infrequent mine moves and residue storage area projects occurring in the near term. Environmental and ARO spending is expected to rise to approximately $150 million, which represents a more normalized near term spend but higher than the COVID constraints 2020 actual spending.
Looking just at the first quarter, current metal and alumina prices are expected to drive EBITDA higher with some partial offsets. Sequentially, adjusted EBITDA in the Bauxite segment is expected to be $45 million lower due to lower internal bauxite pricing and an additional $25 million lower due to lower earnings from minority owned mines and non-recurrence of favorable revenue true-ups in the fourth quarter of 2020. The Alumina segment will see the offsetting benefit of $45 million from lower bauxite internal prices, partially offset by $15 million of higher energy costs and seasonal maintenance costs.
In the Aluminum segment alumina costs are expected to be $20 million higher sequentially. Other items, excluding metal prices and currency, are expected to be unfavorable $10 million sequentially. As a result of our portfolio changes, we have reduced the inter-segment elimination sensitivity for a $10 per ton change in API by $1 million to a range of $7 million to $9 million.
In the first quarter, we also expect related changes in inter-segment inventory volumes and margins to add an additional $10 million sequential benefit to the inter-segment eliminations. Our annual adjusted EBITDA sensitivity is found in the appendix have also been updated but assume full operation of San Ciprian smelter, which is currently not making sales due to the strike. Approximately 50,000 tons of San Ciprian metal did not ship in the fourth quarter. In addition, based on expectations of recent improved pricing driving higher pre-tax earnings, the Company expects first quarter 2021 operational tax expense to increase to approximately $65 million.
With that let me turn it back to Roy.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Bill. As we turn to our markets in the fourth quarter, we saw strong improvement in prices for both alumina and aluminum each rebounding due to stronger demand and finishing near their 2020 peaks that were well above the lows in April. A broad recovery in the markets from COVID-19 impacts, particularly in China, supported the resurgence in the fourth quarter in aluminum demand with the price rally reinforced by a weakening US dollar as prices ended 2020 higher than a year earlier. In December of 2020, less than 5% of global smelting and refining capacity was cash negative.
The recovery in global aluminum demand has been driven by a few notable items. First the reestablishment of more normal operating conditions due to reductions in COVID-19 infections in certain jurisdictions, particularly in China. Next, the ability of global manufacturers to mitigate the risks from the pandemic and continue operation. Also monetary and fiscal stimulus programs have accelerated stronger demand in aluminum's end-use market and that effect is expected to continue.
Now looking ahead to our outlook for global aluminum consumption in 2021. In China where 2020 consumption exceeded 2019 levels, we expect consumption to grow again this year by about 5% year-on-year. In the world, ex-China where consumption contracted in 2020 we expect 2021 consumption to grow by about 10% year-on-year. This would be only the second time we have seen double-digit growth in the past 20 years.
Globally, 2021 consumption is expected to grow by about 7%, the highest global growth rate since 2014. The speed of recovery from COVID-19 and the impact of additional stimulus measures will be key drivers in achieving this growth rate. At the same time, 2021 smelting supply growth led by China is projected to be lower than demand growth. As a result, the global primary aluminum market should be closer to balance this year.
Now turning to Alcoa's own commercial performance. In Bauxite increased volume in the fourth quarter offset quarter-on-quarter price decreases. In 2021, we expect third party bauxite shipments to increase as we continue to boost production. In alumina in the fourth quarter API pricing edged higher quarter-on-quarter. We expect our smelter grade alumina shipments to remain stable in 2021.
Finally, in Aluminum, as we mentioned in both the second and third quarters, sales of value-add products were negatively impacted from the pandemic with the second quarter as the low point. After the 11% sequential improvement in the third quarter, we saw an additional 13% volume growth in the fourth quarter, particularly due to the automotive sector.
In 2021 with demand continuing to improve and considering the impact from portfolio changes, we expect our value-add product volumes to represent almost half of our third-party shipment and to grow approximately 5% year-on-year. While uncertainty remains, we see clear signs that give us confidence that demand in our markets is recovering. As I mentioned earlier, we are making significant progress in strengthening our Company. We are creating a cycle proved set of assets driving for continued improvement in our three segments and leveraging our existing sustainability advantages. As Bill discussed in his remarks, we exceeded our target for cash actions in 2020 and that included the items highlighted on the graphic.
First, in October of 2019 we launched a multi-year strategy that included three key strategic actions. We implemented a new operating model that reduced overhead expenses and brought decision-making closer to our location. It was fully implemented in 2020 and has brought cost saving and improved operational and commercial performance. We announced our intention to generate between $500 million and $1 billion to the sale of non-core assets during the 12 to 18-month period. With the sale of Gum Springs completed in early 2020 and the announced sale of the Warrick rolling mill, we've met this objective and will close this program near the top end of this range. Still, we will continue to evaluate additional opportunities for the sale of non-core assets, determining whether such decisions bring value for our Company and are in accordance with our strategy. We continue to progress in our five-year review of our production assets that includes a range of potential outcomes for these facilities, significantly improved competitive positioning, curtailment closure or divestiture. The review includes 4 million metric tons of global refining capacity of which 2.3 million metric tons has been permanently closed since the announced review. In smelting the review includes 1.5 million metric tons of capacity and the Intalco curtailment reduced that goal by 230,000 metric tons.
Second, through the 2020 programs we implemented improvements that resulted in leaner working capital and improved productivity gain. The benefits from those process improvement will carry forward and help us in 2021 and beyond. And third, we implemented in 2020 specific actions to generate and protect cash during the volatile market conditions from COVID-19. I'm very proud of the contribution of all Alcoains [Phonetic] in making these accomplishments possible.
Next, as we move into 2021 we have some near-term actions on our radar. We expect to successfully close the sale of the Warrick rolling mill, which includes separating the assets that will belong to Kaiser Aluminum from the smelter in the power plant that we will continue to own. We will continue to seek resolution to the ongoing situation with the San Ciprian aluminum smelter in Spain. We are continuing to examine alternatives, including a potential sale of the smelter to a state-owned company.
Next, we are working on options for the Portland aluminum smelter in the State of Victoria in Eastern Australia, which faces challenges from a difficult energy environment. To find a long-term workable solution there are two key requirements, an internationally competitive power price, including generation and transmission fees and flexibility to manage the continued risks of grid instabilities. We are encouraged by positive engagement with stakeholders in Australia, including the federal and Victorian Government and energy generators. All of this work positions each of our segments for an even brighter future, driving improvements in our cost position and demonstrating our differentiated approach to sustainability across our entire value chain.
In our Bauxite segment we will defend our first quartile cost curve position while we continue to leverage our sustainable mining practices, including world-class rehabilitation and working with our communities. In our Aluminum segment we will also defend our first quartile cost curve position and our rank as the lowest carbon intensity producer globally.
As the largest third-party provider of aluminum, we will continue to lead on sustainability, such as in the reduction of water and land use and in our marketing of the world's first ever and only low-carbon alumina brand EcoSource. And in our Aluminum segment, we will drive to a first quartile cost curve position and through our five-year portfolio review, we expect to have the lowest carbon emissions per ton of global aluminum producers. This requires an increase of renewable electricity from 73% currently through a projected 85% of our energy consumption.
As you can see, the right financial decisions will also lead us to a best-in-class sustainability position. I'd like to explore how we believe these changes can drive value for the long term. As a pure play aluminum company active in all segments of upstream production, we have a unique opportunity to define what it means to be sustainable in the aluminum industry. We are positioned well to supply sustainably produced products and to differentiate ourselves from other producers. We've always been a recognized leader in sustainability. For example, we have been named every year to the Annual Dow Jones Sustainability Indices. And in 2020, we continued to certify additional operating asset to the Aluminum Stewardship Initiative, the industry's most comprehensive third-party validation of responsible production. We have earned ASI certification in all three of our product segments, bauxite, alumina and aluminum.
As we move forward we've identified three key value drivers in our sustainability strategy. First on sustaining operation. Alcoa has a comprehensive set of mining practices serving as a blueprint on how to operate responsibly in areas with important biodiversity such as the jarrah forest of Southwest Australia and the Amazon rainforest of Brazil.
In the jarrah forest we identified species of conservation significance avoiding critical habitat and adapting mine plan to minimize disturbance. At [Indecipherable] we use comprehensive forestry techniques to ensure that the rich and fragile ecosystem of the Amazon has returned as close as possible to its original status.
Our reputational expertise and strong management system, which includes proactive engagement with our communities, is an advantage when renewing existing permit, expanding our mine or considering future growth opportunities.
In the middle of this chart, we show how we actively work to mitigate risks to our business. From a climate perspective we have acknowledged the scientific evidence of climate change and we have clear targets to further reduce our corporate wide emission. We are also working to minimize costs associated with mine rehabilitation, while continuing to demonstrate best-in-class technologies, including the full implementation of the global industry standard on tailings management, which was developed in 2020 by a multi-disciplinary panel, including the International Council on Metals and Mining [Phonetic] of which we are members.
While the global standard is now in place for impairment, we're also working to reduce the amount of material that needs to be stored through opportunities for reuse. In late 2020, for example, we became a member of a four-year project that will work to transform bauxite residue into a reactive material suitable for new low-carbon cement product. The project includes 20 partners from across 12 European countries with support from the European Commission. In parallel, our teams are working with the International Aluminum Institute to identify potential pathways for the adoption of bauxite residue in cement production and use.
For water we have established targets to reduce its use in scarce regions. For example, we've now installed press filtration technology at the Kwinana and Pinjarra refineries in Western Australia. Together, they have the capability to reduce freshwater used by approximately 2.2 gigaliters or more than 500 million gallons annually.
Also, we continue to focus on lowering costs and driving efficiency, including through digital solutions. Last year we established an operations group focused on digital transformation as part of our continuous improvement program. This group is working to make operations safer, cleaner, less physically demanding and more productive with everything from drones, remote sensing and machine vision. Just one example includes our work on digital twins which involves continuously copying data from our real world processes and then using models to demonstrate recommended performance improvement.
In the Western Australia refineries, the digital twin work has already helped to optimize real-time gases. In 2020 alone it has generated $1 million in savings while progressing us toward our sustainability goals. All of this work, of course, helps drive our third point of improving profitability over the long term. We believe we can leverage our existing sustainability platform to innovate and grow our family of products. Put simply, demand for sustainable products is increasing. Our existing Sustana family of products is the most comprehensive in our industry. Across our segment, we continue to partner with customers who want to reduce their carbon footprint and work with companies like Alcoa that demonstrates a commitment to sustainability.
We are also innovators. In aluminum we invented the technology behind ELYSIS, a revolutionary breakthrough smelting process that redesign the traditional process for electrolysis. It eliminates all direct greenhouse gas emissions and mix pure oxygen as a byproduct. Plus it shows the promise of improving both production costs and output when compared to a same size smelting well.
As part of this joint venture company, we're working to commercialize this technology over the next few years so it can be license for either retrofit, for existing smelters or the construction of new one. We're making progress. In December ELYSIS announced the completion of construction on its new R&D center in Quebec. It will further advance the work first discovered at our Alcoa technical center outside of Pittsburgh, which will continue to play an important development role.
In closing, I want to step back and reinforce a few important points. I opened today with our values and I'm closing by highlighting our three strategic priorities. They have provided a roadmap as we steer this Company in accordance with our value. In a commodity environment, we consistently work to be low cost and that entails reducing complexity. Our priority to drive returns includes plans to improve margins across our products. And finally, we intend to advance sustainably in all aspects of our business, economically, environmentally and socially. My final key point today aligns with our values and our priorities.
First, during the COVID-19 pandemic we kept our operations running and running well. Despite the challenges from a tumultuous year we were able to achieve results beyond expectation and we will continue to focus on keeping our operations safe following all health-based protocols.
Second, I'm proud of the team work in 2020 that allowed Alcoa to not just stand up in the face of adversity but to move this Company forward during such a challenging time and in accordance with our strategy. We met many goals last year, cash management, non-core asset sales, working capital and productivity. All of this and more will improve this Company for the long term.
Finally, as the world begins to emerge from the current health crisis, we are well positioned to meet the demands of improving markets. Alcoa represents the element of possibility. And I'm excited about the opportunities our Company will capture ahead to serve our market, our customers and the world.
Thank you for your time today. Bill and I look forward to your questions.
Questions and Answers:
Operator
[Operator Instructions] Our first question today will come from David Gagliano with BMO Capital Markets. Please go ahead.
David Gagliano -- BMO Capital Markets -- Analyst
Hi. Thanks for taking my questions. They are really more along the lines of some clarification questions around some of the numbers in the presentation, in the slide deck that kind of thing. On -- in terms of the additional business consideration, can you speak a little more -- explain a little more about what's going on within the Bauxite segment and the Alumina segment with regards to the lower internal alumina, bauxite pricing $45 million lower? And then also related to that the $25 million lower earnings from the bauxite mines, is that a reasonable run rate moving forward for that piece as well?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Hi, Dave. It's Bill. So let me take that one. As far as the bauxite pricing, the inter-company bauxite pricing goes, we are essentially just reflecting the changes that have occurred in the marketplace where bauxite prices have become lower and we're reflecting that change.
Between the two segments, it is really a left pocket, right pocket thing. And -- so overall on a per ton basis, bauxite prices between the segment will be down about $4 a ton for the annual basis and that results in the first quarter versus the fourth quarter about $45 million, but that just gets picked up in the Alumina segment.
When you look at the additional $25 million down in the first quarter, the fourth quarter had some one-timers that occurred on true-up of pricing on annual pricing and that's not going to recur. So, that leaves some higher costs and some lower equity earnings from the joint venture mines filling the additional, let's say, $15 million of lower earnings. Remains to be seen whether that is a new run rate. Clearly, the $45 million is a new run rate that will apply for the entirety of the year unless we see some change in bauxite prices. But we typically set bauxite prices and hold them for the year. So that will be a shift between the two segments.
David Gagliano -- BMO Capital Markets -- Analyst
Okay. So the true-up that occurred in the fourth quarter, the one-timer was obviously an adjusted EBITDA. Is that the total, is that -- does that account for all the $25 million? [Speech Overlap]
William F. Oplinger -- Executive Vice President and Chief Financial Officer
No, that's $10 million of the $25 million -- that's $10 million of the $25 million.
David Gagliano -- BMO Capital Markets -- Analyst
$10 million of the $25 million. Okay.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
In the fourth quarter we had true up on a couple of different areas on pricing, one in Western Australia, one in CBG that resulted in about $10 million of earnings in the fourth quarter which won't recur in the first quarter. So that leaves at about $25 million lower, that leaves you about $15 million of higher costs, some lower volumes in the first quarter.
David Gagliano -- BMO Capital Markets -- Analyst
Okay. And then just the other clarification I had was during your remarks I thought I heard you mention a $12 million -- I thought you said $12 million tariff benefit that flowed through in the fourth quarter or did I misunderstand that? And if so, what was that related to?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
No, you didn't misunderstand. That's a fourth quarter versus third quarter variance. In the third quarter, we had roughly $7 million of expense. In the fourth quarter because we reversed part of the third quarter, we had a $4 million positive. So that rounds to a $12 million variance between third quarter and fourth quarter.
David Gagliano -- BMO Capital Markets -- Analyst
Okay. Understood. Last question for me. The $375 million of sustaining capex for '21, is that a more reasonable run rate moving forward versus the $318 million that we saw in 2020?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
It is in the near term. There's two things that are driving that. First of all, I should say, the $318 million in 2020 given the market environment, we are driving real cash sustainability delays and deferrals in 2020 as much as possible just given the situation that we're in the second and the third quarter with the overall pandemic and market environment.
As we are rolling into 2021, I think the $375 million for the near years is a more reasonable number. There is a couple of things that are going on in there. We still have continued spending on the mine moves that we saw some high mine move spending in 2020. We'll continue to have that in 2021. And we are continuing to spend money and I would say, invest in the residue storage area around system. We're going to spend a little bit more money in 2021 in the residue storage area. So that's what's driving the increase from '21 over '20. And I think for the near years that's a reasonable amount of capital spend. It will all be based on what the portfolio changes get made over the next few years.
David Gagliano -- BMO Capital Markets -- Analyst
Okay. That's helpful. Thank you.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Dave.
Operator
And our next question will come from Timna Tanners with Bank of America. Please go ahead.
Timna Tanners -- Bank of America -- Analyst
Yeah. Hey. Good afternoon. Just two questions, one is a broader question about the aluminum market and another one is just about your capital structure. So I guess to start with, if I recall '20 was a year where Aluminum didn't really start producing despite the dip in demand that you identified. So into 2021 if we think about the market, are there lots of sources of additional supply or do we expect that this demand will be met with kind of the same base of supply? And if you could comment on both aluminum and alumina on that one and then ask the other questions. Thanks.
Roy C. Harvey -- President and Chief Executive Officer
Sure. Timna, so I'll take that one. This is Roy. So I think 2020 was certainly a rather remarkable year in a lot of ways. And I think -- to start off, in China, you saw a very -- a significant drop in demand in the first quarter and then you saw a pretty significant recovery across the year to a point where you actually grew 2019-2020. So from a demand perspective you actually saw some progress in China.
Going into 2021, we continue to believe that demand is going to be increasing. We think it's going be about 5% as I mentioned during the presentation. So demand is a very good story there. You're still seeing some supply growth inside of China. And so that's in particularly heading in the direction of the Yunnan province where they can get hydropower. It is more constrained than we've seen before. However, you are continuing to see some supply come out.
Outside of China and really looking toward the rest of the world and again on aluminum -- starting on aluminum, you really -- you didn't see as big an impact in Q1, although there was certainly a lot of uncertainty. Then going into Q2 to Q4, you saw some build up of inventories. And so those continue to exist. And you really didn't see significant curtailments. Intalco is one of the few places that we chose to curtail. And that's really about all you saw across the market. So you generated the inventories. You certainly didn't see any supply growth, perhaps saw come down a little bit.
Going into 2021, because you've had such -- you've had a year where your demand has dropped from 2019 to 2020, you'll actually see a pretty significant improvement to 10%. Like I mentioned, it's one of the few times we've seen double-digit growth in a very long time. So, we will see a pretty significant recovery and certainly not expecting to see any kind of supply growth or much supply growth coming out beyond some creep activities, etc., that you might see across the rest of the world and no announced restarts.
So, when you take that altogether, I think, what it means from an aluminum perspective is that, you have a quickly recovering market and that is making certain assumptions about what happens with the pandemic, etc. So, there is still uncertainty that sits inside of there. You are seeing some constraints in how much new capacity on -- comes online and when it does it will very much be, for the most part, located in China. And so, you should see up and improving supply/demand balance versus what you saw this year. But again, it -- there's a lot of assumptions that are baked in there.
From an alumina perspective, and I don't want to spend as much time in alumina. But really it's not so different than what I was talking about in aluminum. You continue to see the smelters for the most part operate, which meant you did not have as big an impact on demand from an alumina perspective in 2020, you will see some growth, of course, going in 2021 and that's linked exactly what I was talking about in the aluminum market. You will see some supply growth, both inside of China, but then -- and again, that is very much -- it's really going in two directions. Number one is, more imported bauxite for greenfield or expansions. But you are also seeing more demand for bauxite because of depleting bauxite reserves. But in the end you'll have more alumina supply coming into China. And you also have some additional supply coming on in the rest of the world, in Abu Dhabi and then -- and that's really starting to drive some increases in supply there.
So, again, alumina is not storable, so it tends to be a -- it tends to be very small numbers circulating around zero. But we do have -- we are seeing a very good demand story and a little bit of supply coming back as well.
Timna Tanners -- Bank of America -- Analyst
Okay. Great. So summarizing, quickly recovering market year-over-year with limited ex China supply response, if I understood, that was from Abu Dhabi alumina. So that's a helpful overview. I wanted to just -- if I could just go through Slide 9 real quick and it's really helpful these sources and uses. But if we didn't have these -- the debt raise in July and keeping in mind change in working capital and pension being a little higher, you would have been kind of balanced sources and uses. And, of course, there's this big amount that you are raising through the Warrick sale and a top of the debt issuance. And I know we've talked about this before and you are fully aware of this, but what's the hold-up in -- you've taken some more aggressive actions to addressing the pension, low interest rates, keep that kind of expensive, and as you know, not a lot of benefit to keeping the cash. So just wanted any more color that you can provide on that, please.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Timna. I'll take that one. You saw and just to make sure that it's clear, we did make a pension contribution in -- at the end of 2020, so we contributed $250 million. That allowed us to keep our pension and OPEB total liability of relatively flat in a significantly declining discount rate environment. So, we continue to take action even at 2020 in a year that was a pandemic year, we had thought we would defer that payment out of 2020. But when we saw that the cash that we had on the balance sheet was pretty robust and the outlook is OK, we thought we would make that contribution.
As far as cap -- overall capital allocation goes, I'll point you in really two directions. First of all, we do have a net debt target and we still have that net debt target. And that net debt target is $2 billion to $2.5 billion and we ended the year I think around $3.5 billion on proportional net debt. So, we still need to do further deleveraging either through the pension or through payback -- buyback of the bonds to get to that debt target. We think that we could get there simply by making mandatory contributions over the next three years, but that is the one target that we have as far as the capital structure goes.
And then lastly, the point I'd make is, we, on purpose, put the slide in there that refreshes people about our capital allocation model. And our capital allocation model is, we want to maintain $1 billion of cash on the balance sheet. We weren't always able to do that during 2019 and 2020, but with the debt issuance that we did earlier in this year, we have greater than $1 billion in cash on the balance sheet. We want to sustain the operations. We're spending $375 million and $50 million on sustaining and return-seeking capital projects. Beyond that, we will balance those four items, and one of those items obviously is deleveraging with the debt target. So, more to come. I think, we acknowledge the fact that we're sitting on, at the end of the year, a significant amount of cash. Hopefully, that the work transaction completely gets done at the end of the first quarter and we'll have more cash. So, more to come over the next six months or so.
Timna Tanners -- Bank of America -- Analyst
Okay. That's it. Thanks, Bill.
Operator
And our next question will come from Lucas Pipes with B. Riley Securities. Please go ahead.
Lucas Pipes -- B. Riley Securities -- Analyst
Hey. Good afternoon, everybody. So, you've really accomplished a lot on the portfolio optimization side over the past years and congratulations on all of your success there. And two questions on that, kind of what are the priorities from here? And then two, a question that we get fairly frequently from investors, how is this going to impact your cost position going forward? And when I go back to prior quarters, you commented how this would move you lower on the cost curve, including aluminum where you're not -- you haven't been at target range. But how should we try to capture this in our model? What are some of the moving pieces going forward? Thank you very much.
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Lucas, thanks. Thanks for the question and let me talk a little bit about portfolio and then I can have Bill fill in a little bit on the cost curve side as well at the end. So, we had -- we really broke it down into two very specific programs, that was 4 million metric tons in refining. And as you'll remember that, we did a permanent closure of Point Comfort, which was 2.3 million metric tons. So on the way there.
On the smelting side, we had a program of 1.5 million metric tons. Really the first action was the two -- the approximately 280,000 ton smelter in Intalco or 280,000 tons of operating capacity. And then we also are starting to take action in San Ciprian. Although, that curtailment itself has been put on hold because of a recent legal judgment and we are now in negotiations with the Works Council because of an ongoing strike. And so, I think those things are pretty clear. We'll continue to keep everybody informed about what happens in San Ciprian. But we have a tentative agreement to restart our ability to sell in San Ciprian here shortly. But, of course, we have to wait for that to actually be ratified.
Looking forward, Lucas, I think, I would just remind you that, that each of these reviews has a number of different potential outcomes. First and foremost, hopefully, that we can find a solution so that they can become more competitive, and of course, that also connects with the power source. And so, as you imagine, we're trying to solve, not only for best financial outcomes, but also for low-carbon because of the emerging ESG expectations and our drive to also be the lowest producer of -- lowest carbon producer in aluminum and to continue to be the lowest carbon producer in refining as well. So, we look to try to make a real difference in the cost positions of each of the plants that are higher on the cost curve.
The second piece, of course, could be a curtailment or closure. And then, finally, the other option is divestiture, which, as markets improve, is becomes more and more possible or likely.
The other moving piece that I'd put in front of you was Portland. That was an agreement that we had made with the government in the last power outage that occurred. We had brought that back up again. We're in the midst of discussions with the federal, the national government, but then also with the State of Victoria. A lot of good discussions. We're certainly seeing we're making progress, but that's going to be the next one that we'll need to make a decision on and will very much depend on how the market looks and then, of course, what the final deal is and what we can do with power prices.
So outside of that, we have not named any specific locations. I would say that we are very determined to continue to move on both the refining and the smelting program. The real purpose is to make sure, again, of two things to secure -- in the case of refining, to secure our first quartile cost curve performance and then to preserve that lowest carbon producer globally.
And from an aluminum perspective, it helps us to slide down from the second into the first quartile of the cost curve and then will also make us the lowest carbon producer in -- from that standpoint a well. And that doesn't even get into the ELYSIS potential that we have, which is a zero-carbon technology that we're developing as part of the ELYSIS joint venture. So, lots of work still ahead of us. It was a five-year program. We have made deliberate steps over the course of 2020 in order to move forward, even with all the craziness swirling around us from the pandemic. But more to come, Lucas.
I guess, I'll turn it over to Bill, if you wanted to comment a little bit more on the financial side.
Lucas Pipes -- B. Riley Securities -- Analyst
Thank you very much.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Roy, I think you summarized it well. So, Lucas, just to be clear: bauxite, maintain our first quartile cost position; alumina, maintain our first quarter quartile cost position; maintain our first best CO2 emitter position and actually get better; and then on the aluminum side, we bounce between the top of the second, the bottom of the third quartile cost curve, and we're targeting for the top of the first quartile, so right around that 25th percentile. And at the same time, we will have the lowest carbon emissions portfolio out there. So, both on cost and on carbon, we're targeting some of the best positions in the world.
Lucas Pipes -- B. Riley Securities -- Analyst
That's helpful. Thank you for that detail. That gives me things to think about as well. So appreciate that. Quick follow-up question on the earlier question on China. You mentioned the strength. Could you elaborate a little bit as to what end markets appear to be driving the demand recovery in China in particular would be [Indecipherable]? Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Sure. And it's -- oddly enough, it's pretty broad-based. And so, it's hard to pick one single piece of the Chinese recovery that is outstanding. Construction, certainly, because it's such a large proportion of -- the aluminum consumption is growing, we think, around 4% for 2020. The other piece that really was very much infrastructure-driven was machinery and a lot of that going into infrastructure builds, and that's about 15% of the total Chinese aluminum demand. And that's growing just a little bit shy of 5%. We think about 4.7% in 2020. And then I would also highlight the electrical systems and particularly ultra-high voltage. We think that's growing about 6% in 2020, and that's about 13% of the total market.
Looking toward 2021, it's sort of the same story, where it's -- you've got a lot of strength going across a number of different areas, continue to see similar construction growth. Packaging doing very well as well, almost 6% growth we're expecting in 2021. Machinery continues strong and again, very much connected to infrastructure growth. And then transportation, and particularly automotive passenger vehicles and with the shift to new energy vehicles continuing our work really had a decent year in 2020 but roaring back and strengthening up even to about 9% for 2021. So, again, it's -- when you've had that, what was a challenging year, it's a really strong recovery.
Lucas Pipes -- B. Riley Securities -- Analyst
That's a very helpful detail. I appreciate it very much and continued best of luck. Thank you.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Lucas.
Operator
And our next question comes from Curt Woodworth with Credit Suisse. Please go ahead.
Curt Woodworth -- Credit Suisse -- Analyst
Yeah. Hey. Good evening, Roy and Will. So, I've got a...
Roy C. Harvey -- President and Chief Executive Officer
Hi, Curt.
Curt Woodworth -- Credit Suisse -- Analyst
Hey. So, similar question to Timna just on capital structure. When you look at the balance sheet today of $1.6 billion cash and then pro forma work, assuming that goes through, you're close to $2.2 billion. And then you still have additional non-core asset sales you're looking at, and the business is generating pretty good free cash at spot pricing. So it's not in-foreseeable that cash balance is going to continue to grow in the next year. And you've kind of talked about, on the pension side, just the mandatory contributions get you where you need to go for the leverage target. So, I'm just curious, at that point, would you evaluate a more material buyback. I know you have $150 million left or taking the dividend up. Or is it the type of thing where, depending on how successful the pilot program at ELYSIS goes, that that theoretically, to make more the footprint carbon free, would require more capital? I'm just kind of curious to think about what you're kind of thinking beyond the short one, is my first question.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Yeah. So, again, four potential uses of excess free cash flow, and if I could just give you some color on each one of them. And I think you touched on a little bit of this. In the near-term, the midsized growth projects has always referenced our refining projects, both in Australia and in Brazil. We put those projects on hold in 2020 due to the crisis and haven't -- have yet taken them off hold. So, should give you an indication of the near-term spending around the midsized growth projects.
If we then look at return to shareholders, we do still have $150 million of an authorization of share buyback, so that gives us today the opportunity there. We do not have a dividend at this point. So, if we saw ourselves in a position, Curt, where we're generating consistent free cash flow through the cycle, that would certainly be something that we would analyze and consider.
The repositioning of the portfolio, depending on what happens with some of these key assets, and Roy specifically talked about San Ciprian. He talked about Portland. Depending on what happens there, that will cost us some money. And we've not given transparency around how much that will cost just because we don't yet know what the outcome is on those particular plants.
And then when it comes to the deleveraging, we are committed to the $2.5 billion. And as you and I have discussed in the past, the -- and I think Timna alluded to this, the pension is an opportunity for us to deleverage further. And the pension is a large underfunded pension for the size of our Company, and that's why, over the course of the last four years, we've consistently done everything we possibly can to try to address that pension and OPEB liability. So, as I said to Timna, we'll have more clarity during the course of the year, and we'll be balancing those four items.
Curt Woodworth -- Credit Suisse -- Analyst
Okay. That makes sense. And then, on the pension, the -- I think the total pension OPEB funding of $320 million for this year, but then you also say that that does not include $197 million related to what was deferred to January 4. So, I guess, the question is, what is the right number for this year?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Yes. Let me clarify that. There's lots of numbers on pension, and it's important to understand where -- what the boundaries are on pension. We began this year with close to $700 million of prefunding balance, and we used part of that prefunding balance for the 2020 deferral. And you may say, how do you get to $700 million of prefunding balance, the funding that we made at the end of December added to our prefunding balance. And then January -- early January came, and we had to use part of that prefunding balance for -- to cover those deferrals.
So, as we look forward, the range of outcomes for the Company in 2020 is, if we use no prefunding balance, we will contribute $320 million. If we use all of our -- or not all of our, if we use all applicable prefunding balance, then we could be contributing as low as about $150 million of cash in 2020. So, that's the range of outcomes. If we use prefunding balance, it's $150 million. That's both pension and OPEB. If we use no prefunding balance, it's $320 million, both pension and OPEB for 2020.
Curt Woodworth -- Credit Suisse -- Analyst
Okay. Perfect. Thank you very much.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Curt.
Operator
And our next question comes from Alex Hacking with Citi. Please go ahead.
Alexander Hacking -- Citigroup -- Analyst
Thanks, Roy and Bill. And congrats on all the sustainability assets that you're making. Just following up on the assets. Not sure how much color you can give here. But, I guess, what's the timeline for the legal process at San Ciprian? Is this something that could drag on a while like in terms of years? Or are we thinking more in terms of months? And then at Portland, you talked about the power contract there. Obviously, price is one aspect. You also alluded to the instability of the grid. And, I guess, like, what are you -- specifically, what are you looking for there in terms of ensuring that you'll get the kind of stability of supply that you'll need going forward? Thanks.
Roy C. Harvey -- President and Chief Executive Officer
Sure. Alex, let me hit on both of those. So, from a San Ciprian perspective, there is really a couple of different routes, so the timing is going to depend on where we find ourselves and how those couple of routes move forward. So, the legal process, and we've filed an appeal to the negative judgment that we received, that could last for a while. It takes time. And so, no question that that is something that just requires patience. However, at the same time, we're also in discussions with the Works Council in order to end the strike to try and see, once again, if there is the potential for the state-owned company to take ownership, if Spain truly wants to continue to produce aluminum. And so, that one could move more quickly. It's not instant. It takes time in order to try and understand and determine what is the -- what is an acceptable deal, but it's something that we obviously are considering committing to as we move forward with the discussions with the Works Council. So, it will certainly take some time, and it depends on which route we go on.
From a Portland perspective and really, that's moving toward the middle of this year when the current deal with the government ends. Flexibility, really, what I'm trying to refer to there is that, we found ourselves in -- we have a power price issue, which is structural for the State of Victoria, but we've also had significant issues where the power has simply not been delivered to the plant. And as you can imagine, you only can spend a couple, two, three hours before a plant gets into serious trouble. So the flexibility we need, number one, is to make sure that we have a consistent power supply; and then number two, that our contracts are sufficiently flexible and give us exit clauses. That means that we're not forced to rebuild in order to restart and that we have the right path forward to -- the right path forward so that we can, not only have a good price, but also have the flexibility in case something were to go wrong because of the instability of that particular grid.
Alexander Hacking -- Citigroup -- Analyst
Okay. Thanks. So, I mean, simplistically, are you looking for prioritization on power when they run into issues with the grid?
Roy C. Harvey -- President and Chief Executive Officer
I'd look at it more at what are the clauses in case there is another power disruption, whether it's a take or pay or whether you structure it in some other way, how do you recognize the instability of the grid. And then on the other side also is, what is the -- what are the benefits that you can accrue from things like interruptibility, where you have a shorter-term interruption as well. So it gets into a little bit of the arcane contractual language in trying to build that. Not so much prioritization because, if the power is flowing, typically, there is enough and we're right on the direct path.
Alexander Hacking -- Citigroup -- Analyst
Okay. I got it. And then just, I guess, one final one, a quick one. You mentioned that value-added products should increase about 5% year-over-year. I guess, my question is like, how does that compare to 2019 to sort of take us back to where you were?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Maybe Bill has a more quantifiable answer, but the issue that you have is that, you've got some pretty significant portfolio changes. And so, Intalco was very heavily weighted over toward value-added production, and San Ciprian is also heavily weighted over toward value-added production as well. So, as you look into 2020 and currently with San Ciprian not producing nor selling products and then with Intalco no longer in the portfolio, it's that you're changing both the numerator and the denominator. And so, the 5% really represents what's happening across the portfolio. And so, it's probably underrepresenting the fact that the markets are improving.
I don't know, Bill, if you have something that would be a bit more quantifiable to be able to answer that?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
No, I don't, Roy. I think you hit on all the key points. It really depends on the -- some of the asset shifts that we've made and the fact that Intalco was curtailed, was a lot of value-add products. So, no comparison to '19 that I have.
Alexander Hacking -- Citigroup -- Analyst
Perfect. Thanks for the color. Have a good evening.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Alex.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thank you.
Operator
And our next question comes from Chris Terry with Deutsche Bank. Please go ahead.
Christopher Terry -- Deutsche Bank -- Analyst
Hi, Roy and Bill. Hope you're both doing well. I'll try to be quick. Just two quick ones. With the prefunding balance, just to help understanding that, why wouldn't you use that, I guess, to be direct?
And then the second question, you talked around the energy costs in the alumina division. I just wondered if you could talk about caustic and then also carbon for the smelting. Thanks. Just what you're seeing for '21 on the cost outlook.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
As far as the prefunding balance goes, Chris, having the prefunding balance gives us flexibility to be able to defer payments in difficult years. And so, a year like last year, where we are sitting in April and metal prices had plummeted, alumina prices had plummeted, it gives us the ability to manage through some of those cycles. So, it will depend on how strong cash flow is during the course of the year to whether we maintain that prefunding balance or not.
Your next question should probably be, well, when will you use that prefunding balance, and we will use the prefunding balance as we get far closer to a fully funded pension. So, we will use it. It's just a matter of whether we use part of it this year. We actually refreshed that prefunding balance. So, as of today, we're sitting with about $500 million of prefunding balance. Gives us a lot of flexibility to manage cash flows over the next couple of years now with the US pension system.
What was your -- I'm sorry, what was your second question?
Christopher Terry -- Deutsche Bank -- Analyst
Just some comments on the outlook for costs. You mentioned energy costs, specifically for 1Q '21, but just on caustic and carbon and the trends in those -- on those costs.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Okay. Yeah, I can definitely address that. We -- let me address carbon first. On the carbon side, we are seeing some higher calcined coke prices and green coke prices. And so, we're -- we saw that in the fourth quarter. In relation to where they were a couple of years ago, it's certainly not big, but we did some -- see some increase in calcined coke and green coke prices. We're projecting those to continue into the early part of 2021.
You've probably heard me talk about coal tar pitch and the stubbornness of high prices on coal tar pitch. We have finally started to see coal tar pitch in the fourth quarter took a fairly decent decline from the prior quarters but may trend up a little bit again in the first half of next year.
And then lastly, caustic prices have come down sharply over the course of the last six or eight quarters. And we believe that, at least in the near-term, they will stay at those lower levels. So, not a lot of upward pressure from caustic prices in the first half of next year -- I should say this year. I keep saying next year. My mind is still thinking about the fourth quarter, so in reference to the first half of 2021.
Christopher Terry -- Deutsche Bank -- Analyst
Thanks. Thank you. That's helpful.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Chris.
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Chris.
Operator
And our next question comes from Emily Chieng with Goldman Sachs. Please go ahead.
Emily Chieng -- Goldman Sachs -- Analyst
Hi. Thanks for taking the call today. I wanted to come back to Slide 12 where you outlined some of your cash actions here. Maybe this is me nitpicking a little bit, but I think the target that you had for lower production costs in 2020 was $100 million there, but I think the achieved number was $73 million. Can you sort of talk through maybe what the variance was between the target and what was achieved? And is there a path to seeing some of that being pulled through into 2021?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
I'll take a first crack at that. First of all, it was an aggressive target, and we try to set aggressive targets. And if you look at each one of those targets, we either exceeded or came awfully close, Emily, to each one of those targets. And in aggregate, we delivered over $900 million of cash improvement. So for you to pick out the one where we didn't achieve it by, what, $27 million when, in fact, we overachieved on the working capital side by tens of millions, if not, over $100 million, is an interesting question.
This is the first year that we've been able to turn the tide on some of the cost increases that we've seen in the last couple of years. We have a new operating model in place that really flattens the organization and allows us to manage across the organization much better. And while we didn't hit the target, I can tell you, I'm really, really pleased with the overall results of the operations and the stability that we saw and the fact that we drove lower costs, even though we didn't hit the overall target.
And then when you look at the working capital side, tremendous outperformance by our commercial team, which is now managing working capital from end-to-end. So that's my view.
Roy, do you have any comments?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Let me sort of a quick technical comment, then talk a little bit more about where we're going from here. Technically, one of the challenges we faced is that we had, really, three plants under significant change. And first of all, Intalco, as you can imagine, we have big intentions to see Intalco's costs drop significantly but then reverse that and decided we would head toward a curtailment, and that really comes through in the advantages and portfolio review that will really pick up in 2021. San Ciprian also was this very special case because of the decision that we had made to curtail that plant, the ongoing legal process. And so, that really is a place where it's been sort of a mixed bag. And so, it's hard to compare one year to the next when you've got so much happening at San Ciprian. And the third is Warrick. And as you can imagine, Warrick was also complicated because of all the need to start that sales process reach, what I think is an excellent conclusion in a very fair price, and then also prepare to make -- actually make that separation. So those three things are sort of -- technically speaking, they're sort of strange things in the number itself.
On the other side, I'm really looking forward, and I think Bill hit this and hit it correctly. I think we have put a lot of effort this year into building stability. I think our new operating model is very clear about who owns the responsibility for driving productivity. Our plants -- all of our plant managers, our department managers and our entire operating teams really have their eyes focused on driving productivity forward. And so, I'd say, it's always a challenge. It's always a fight to make sure that you're doing that. But I am -- I would echo Bill's words that we're seeing real improvements and we're really seeing good, smart, thoughtful and measured ways to try and drive more productivity without losing stability, without making changes that really are not -- don't support continuing production in -- going forward.
And it's one of the advantages also of working our way through the portfolio review, is that, it really drives us to a portfolio of plants that are low in the cost curve, whether that's in bauxite, alumina or aluminum and that we can truly invest in and move through that cycle without having to take evasive and sort of difficult questions because they're on the bubble and therefore, need to drive -- to either decide between curtailment or operating.
Operator
And our next question will come from Carlos De Alba with Morgan Stanley. Please go ahead.
Carlos De Alba -- Morgan Stanley -- Analyst
Thank you very much, Roy and Bill. Just on the growth projects in alumina, can you elaborate a little bit as to what you -- how are you looking at this? What are the either milestones or things that you need to do? What is the process that you're following to decide as to when you go ahead or not? And would those -- would you pull the trigger only after you complete the portfolio restructuring in the segment? Or it could be simultaneous, your situation where you continue to work on the restructuring but you go ahead with the project?
Roy C. Harvey -- President and Chief Executive Officer
Yeah. Carlos, let me take a first swing at that, and Bill can chime in as well. So, I'll answer your second question first. There is no need to finish the restructuring or finish the portfolio review before we decide to move forward on those projects or not. With -- there are really two separate flow paths. I think we have the actions in hand, and we have the cash that would be necessary in order to do both of those things at the same time. Of course, that's dependent upon market.
And that really gets me to the answer for your first question, which is, we look at those projects really in two separate directions: what does it cost in order to bring that new capacity online; and what is the risk associated of actually hitting that target and not impacting what are some pretty fantastic plants that are currently operating. So, we want to make sure that we don't create negative impacts on the broader production in order to try and capture a little bit more. So, it's really making sure that they are competitive, that they are technically -- we're technically capable of doing that and that we're driving the cost per ton of those brownfield expansions or really the creep or debottlenecking projects drive them forward as low-cost as we can.
The other side of it, of course, is market. And so, we are constantly looking forward at how the market looks. That impacts the cash that we have available, of course, but it also impacts whether we can get a return on putting that excess capital in order to do those debottlenecking projects. And so, that's sort of the nuts and bolts of looking at the market not just for this year but really out the next five, 10 or even further and understanding, in the case of Western Australia, understanding our bauxite reserves and how we're going to use them and then also evaluating all the different opportunities that we have. But in the end, and then circle back to your second question yet again, there is not a constraint outside of our belief that we can drive a real return for our shareholders by doing those projects given the market that we see going forward.
I don't know if you want to add to that on anything?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
No further comments, Roy. You covered it well.
Carlos De Alba -- Morgan Stanley -- Analyst
And just, Bill, this is probably relatively small, but on Page 13 of the deck, the transformation EBITDA increased $60 million -- to $65 million negative in the outlook. Maybe you mentioned this, but if you did, I missed it. What is the driver of that?
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Yeah. I actually didn't mention it, Carlos. So it's good that you asked it. We were really in -- again, in the second and third quarter of 2020, we were in cash conservation given where alumina and aluminum prices were. So we were deferring, delaying as much as we could on the transformation side. And I think that's, to some extent, just to reflect -- that is being reflected in that outlook for 2021, about a $20 million increase in cost on projects that we didn't do in 2020.
Carlos De Alba -- Morgan Stanley -- Analyst
All right. Excellent. Thank you very much. Good luck to the year [Phonetic].
William F. Oplinger -- Executive Vice President and Chief Financial Officer
Thanks, Carlos.
Roy C. Harvey -- President and Chief Executive Officer
Thanks, Carlos.
Operator
And this concludes our question-and-answer session. I'd like to turn the conference over to Roy Harvey for any closing remarks.
Roy C. Harvey -- President and Chief Executive Officer
Thank you, Cole. I appreciate the help on today's call. And for everybody, I'd like to thank you for joining us as well. I am very proud of what our employees have accomplished in 2020. It simply has been an extraordinary amount of work in what are really unprecedented in the bit uncertain times. To put it simply, we're trying to do what we said that we would do, and that is really, really working toward a stronger Alcoa and really moving forward with the strategy that we've presented over these last quarters. Here at Alcoa, we are consistently driving for improvement. We are focused on making progress and looking toward the future.
So I look forward to updating you again next quarter, and until then, I hope that you stay safe, healthy. And have a good evening. Thank you.
Operator
[Operator Closing Remarks]
Duration: 82 minutes
Call participants:
James Dwyer -- Vice President of Investor Relations
Roy C. Harvey -- President and Chief Executive Officer
William F. Oplinger -- Executive Vice President and Chief Financial Officer
David Gagliano -- BMO Capital Markets -- Analyst
Timna Tanners -- Bank of America -- Analyst
Lucas Pipes -- B. Riley Securities -- Analyst
Curt Woodworth -- Credit Suisse -- Analyst
Alexander Hacking -- Citigroup -- Analyst
Christopher Terry -- Deutsche Bank -- Analyst
Emily Chieng -- Goldman Sachs -- Analyst
Carlos De Alba -- Morgan Stanley -- Analyst
More AA analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alcoa Corporation (NYSE: AA) Q4 2020 Earnings Call Jan 20, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation.
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Operator [Operator Closing Remarks] Duration: 82 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer David Gagliano -- BMO Capital Markets -- Analyst Timna Tanners -- Bank of America -- Analyst Lucas Pipes -- B. Riley Securities -- Analyst Curt Woodworth -- Credit Suisse -- Analyst Alexander Hacking -- Citigroup -- Analyst Christopher Terry -- Deutsche Bank -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Carlos De Alba -- Morgan Stanley -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q4 2020 Earnings Call Jan 20, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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Operator [Operator Closing Remarks] Duration: 82 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer David Gagliano -- BMO Capital Markets -- Analyst Timna Tanners -- Bank of America -- Analyst Lucas Pipes -- B. Riley Securities -- Analyst Curt Woodworth -- Credit Suisse -- Analyst Alexander Hacking -- Citigroup -- Analyst Christopher Terry -- Deutsche Bank -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Carlos De Alba -- Morgan Stanley -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q4 2020 Earnings Call Jan 20, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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Operator [Operator Closing Remarks] Duration: 82 minutes Call participants: James Dwyer -- Vice President of Investor Relations Roy C. Harvey -- President and Chief Executive Officer William F. Oplinger -- Executive Vice President and Chief Financial Officer David Gagliano -- BMO Capital Markets -- Analyst Timna Tanners -- Bank of America -- Analyst Lucas Pipes -- B. Riley Securities -- Analyst Curt Woodworth -- Credit Suisse -- Analyst Alexander Hacking -- Citigroup -- Analyst Christopher Terry -- Deutsche Bank -- Analyst Emily Chieng -- Goldman Sachs -- Analyst Carlos De Alba -- Morgan Stanley -- Analyst More AA analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Alcoa Corporation (NYSE: AA) Q4 2020 Earnings Call Jan 20, 2021, 5:00 p.m. In addition, we have included some non-GAAP financial measures in this presentation.
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1092.0
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2021-01-20 00:00:00 UTC
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Noteworthy Wednesday Option Activity: CAR, OSPN, AA
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AA
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-car-ospn-aa-2021-01-20
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Avis Budget Group Inc (Symbol: CAR), where a total of 7,466 contracts have traded so far, representing approximately 746,600 underlying shares. That amounts to about 66.2% of CAR's average daily trading volume over the past month of 1.1 million shares. Especially high volume was seen for the $45 strike call option expiring February 19, 2021, with 931 contracts trading so far today, representing approximately 93,100 underlying shares of CAR. Below is a chart showing CAR's trailing twelve month trading history, with the $45 strike highlighted in orange:
OneSpan Inc (Symbol: OSPN) saw options trading volume of 1,892 contracts, representing approximately 189,200 underlying shares or approximately 66.2% of OSPN's average daily trading volume over the past month, of 285,970 shares. Especially high volume was seen for the $22.50 strike call option expiring March 19, 2021, with 1,029 contracts trading so far today, representing approximately 102,900 underlying shares of OSPN. Below is a chart showing OSPN's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
And Alcoa Corporation (Symbol: AA) options are showing a volume of 26,135 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 65.9% of AA's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $20 strike put option expiring February 19, 2021, with 5,096 contracts trading so far today, representing approximately 509,600 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for CAR options, OSPN options, or AA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $20 strike put option expiring February 19, 2021, with 5,096 contracts trading so far today, representing approximately 509,600 underlying shares of AA. Below is a chart showing OSPN's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 26,135 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 65.9% of AA's average daily trading volume over the past month, of 4.0 million shares.
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Below is a chart showing OSPN's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 26,135 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 65.9% of AA's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $20 strike put option expiring February 19, 2021, with 5,096 contracts trading so far today, representing approximately 509,600 underlying shares of AA.
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Below is a chart showing OSPN's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 26,135 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 65.9% of AA's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $20 strike put option expiring February 19, 2021, with 5,096 contracts trading so far today, representing approximately 509,600 underlying shares of AA.
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Especially high volume was seen for the $20 strike put option expiring February 19, 2021, with 5,096 contracts trading so far today, representing approximately 509,600 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for CAR options, OSPN options, or AA options, visit StockOptionsChannel.com. Below is a chart showing OSPN's trailing twelve month trading history, with the $22.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 26,135 contracts thus far today.
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1093.0
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2021-01-20 00:00:00 UTC
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Alcoa Q4 20 Earnings Conference Call At 5:00 PM ET
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AA
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https://www.nasdaq.com/articles/alcoa-q4-20-earnings-conference-call-at-5%3A00-pm-et-2021-01-20
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nan
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nan
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(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on January 20, 2021, to discuss Q4 20 earnings results.
To access the live webcast, log on to http://www.alcoa.com
To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9814203.
For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 10150574.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on January 20, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://www.alcoa.com To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9814203. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 10150574.
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(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on January 20, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://www.alcoa.com To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9814203. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 10150574.
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(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on January 20, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://www.alcoa.com To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9814203. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on January 20, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://www.alcoa.com To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9814203. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 10150574.
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1094.0
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2021-01-20 00:00:00 UTC
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Alcoa Q4 Earnings Beat Street View
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AA
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https://www.nasdaq.com/articles/alcoa-q4-earnings-beat-street-view-2021-01-20
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nan
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nan
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday reported fourth-quarter adjusted earnings that trumped Wall Street analysts' estimates. Revenues also exceeded expectations.
Pittsburgh-based Alcoa reported fourth-quarter loss of $4 million or $0.02 per share, narrower than last year's loss of $303 million or $1.63 per share last year.
Excluding one-time items, earnings for the quarter were $49 million or $0.26 per share, compared to last year's loss of $57 million or $0.31 per share. On average, 9 analysts polled by Thomson Reuters expected earnings of $0.11 per share.
Revenues for the quarter dropped to $2.39 billion from $2.44 billion a year ago. Analysts had a consensus revenue estimate of $2.35 billion.
"In a very challenging year, we set multiple production records, exceeded our goals for cash management, and made significant progress on our multi-year strategy," said Alcoa President and CEO Roy Harvey. "We had a very solid fourth quarter, and the work we accomplished in 2020 positions us well to capture the benefits of an improved market.
Alumina shipments dropped to 2.31 million metric tons from 2.46 million metric tons last year.
Looking forward to 2021, the company expects total alumina shipments to be between 13.9 and 14.0 million metric tons and stable in comparison to 2020.
AA closed Wednesday's trading at $22.84, down $0.25 or 1.08%, on the NYSE. The stock further dropped $0.56 or 2.46% in the after-hours trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday reported fourth-quarter adjusted earnings that trumped Wall Street analysts' estimates. AA closed Wednesday's trading at $22.84, down $0.25 or 1.08%, on the NYSE. "In a very challenging year, we set multiple production records, exceeded our goals for cash management, and made significant progress on our multi-year strategy," said Alcoa President and CEO Roy Harvey.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday reported fourth-quarter adjusted earnings that trumped Wall Street analysts' estimates. AA closed Wednesday's trading at $22.84, down $0.25 or 1.08%, on the NYSE. Pittsburgh-based Alcoa reported fourth-quarter loss of $4 million or $0.02 per share, narrower than last year's loss of $303 million or $1.63 per share last year.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday reported fourth-quarter adjusted earnings that trumped Wall Street analysts' estimates. AA closed Wednesday's trading at $22.84, down $0.25 or 1.08%, on the NYSE. Pittsburgh-based Alcoa reported fourth-quarter loss of $4 million or $0.02 per share, narrower than last year's loss of $303 million or $1.63 per share last year.
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(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday reported fourth-quarter adjusted earnings that trumped Wall Street analysts' estimates. AA closed Wednesday's trading at $22.84, down $0.25 or 1.08%, on the NYSE. Revenues also exceeded expectations.
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1095.0
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2021-01-07 00:00:00 UTC
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Notable Thursday Option Activity: PINS, SKX, AA
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AA
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-pins-skx-aa-2021-01-07
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Pinterest Inc (Symbol: PINS), where a total of 54,742 contracts have traded so far, representing approximately 5.5 million underlying shares. That amounts to about 63.4% of PINS's average daily trading volume over the past month of 8.6 million shares. Especially high volume was seen for the $75 strike call option expiring January 15, 2021, with 5,285 contracts trading so far today, representing approximately 528,500 underlying shares of PINS. Below is a chart showing PINS's trailing twelve month trading history, with the $75 strike highlighted in orange:
Skechers USA Inc (Symbol: SKX) options are showing a volume of 6,531 contracts thus far today. That number of contracts represents approximately 653,100 underlying shares, working out to a sizeable 63% of SKX's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $35 strike call option expiring January 15, 2021, with 5,135 contracts trading so far today, representing approximately 513,500 underlying shares of SKX. Below is a chart showing SKX's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Alcoa Corporation (Symbol: AA) options are showing a volume of 29,452 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 62% of AA's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $30 strike call option expiring March 19, 2021, with 16,010 contracts trading so far today, representing approximately 1.6 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for PINS options, SKX options, or AA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $30 strike call option expiring March 19, 2021, with 16,010 contracts trading so far today, representing approximately 1.6 million underlying shares of AA. Below is a chart showing SKX's trailing twelve month trading history, with the $35 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 29,452 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 62% of AA's average daily trading volume over the past month, of 4.7 million shares.
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That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 62% of AA's average daily trading volume over the past month, of 4.7 million shares. Below is a chart showing SKX's trailing twelve month trading history, with the $35 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 29,452 contracts thus far today. Especially high volume was seen for the $30 strike call option expiring March 19, 2021, with 16,010 contracts trading so far today, representing approximately 1.6 million underlying shares of AA.
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That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 62% of AA's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $30 strike call option expiring March 19, 2021, with 16,010 contracts trading so far today, representing approximately 1.6 million underlying shares of AA. Below is a chart showing SKX's trailing twelve month trading history, with the $35 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 29,452 contracts thus far today.
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That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 62% of AA's average daily trading volume over the past month, of 4.7 million shares. Especially high volume was seen for the $30 strike call option expiring March 19, 2021, with 16,010 contracts trading so far today, representing approximately 1.6 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $30 strike highlighted in orange: For the various different available expirations for PINS options, SKX options, or AA options, visit StockOptionsChannel.com.
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1096.0
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2021-01-05 00:00:00 UTC
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Bauxite shipping firm Winning quits international aluminium body
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AA
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https://www.nasdaq.com/articles/bauxite-shipping-firm-winning-quits-international-aluminium-body-2021-01-05
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nan
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nan
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Updates with Winning declining to comment in paragraph 5
Jan 5 (Reuters) - Winning International Group, the world's largest bauxite shipping firm, has left the International Aluminium Institute (IAI), the industry body said on Monday after updating its member list for the new year.
"Winning are no longer members of the IAI," the body's London secretariat said. The IAI website no longer lists Winning as a member.
Singapore-based Winning becomes the second company to leave the IAI in the past six months after China Hongqiao Group 1378.HK, the world's top private-sector aluminium producer, resigned in mid-2020.
Prior to that, IAI membership represented more than 60% of global output of aluminium metal, as well as raw materials bauxite and alumina.
It was not clear why Winning gave up membership in the IAI. A company spokesman declined to comment.
Winning has long shipped bauxite to Shandong-based Honqqiao and the two companies are partners in the SMB-Winning consortium that mines bauxite in Guinea.
Winning's exit leaves the IAI, which was set up in 1972 and works to expand the market for aluminium, with 25 members. These include state-owned Aluminum Corp of China, or Chinalco, Alcoa AA.N, Norsk Hydro NHY.OL, Rio Tinto RIO.L and Rusal 0486.HK.
(Reporting by Tom Daly and Pratima Desai; additional reporting by Mai Nguyen; Editing by Christian Schmollinger)
((tom.daly@thomsonreuters.com; +86 10 5669 2119;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These include state-owned Aluminum Corp of China, or Chinalco, Alcoa AA.N, Norsk Hydro NHY.OL, Rio Tinto RIO.L and Rusal 0486.HK. Singapore-based Winning becomes the second company to leave the IAI in the past six months after China Hongqiao Group 1378.HK, the world's top private-sector aluminium producer, resigned in mid-2020. Prior to that, IAI membership represented more than 60% of global output of aluminium metal, as well as raw materials bauxite and alumina.
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These include state-owned Aluminum Corp of China, or Chinalco, Alcoa AA.N, Norsk Hydro NHY.OL, Rio Tinto RIO.L and Rusal 0486.HK. Updates with Winning declining to comment in paragraph 5 Jan 5 (Reuters) - Winning International Group, the world's largest bauxite shipping firm, has left the International Aluminium Institute (IAI), the industry body said on Monday after updating its member list for the new year. "Winning are no longer members of the IAI," the body's London secretariat said.
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These include state-owned Aluminum Corp of China, or Chinalco, Alcoa AA.N, Norsk Hydro NHY.OL, Rio Tinto RIO.L and Rusal 0486.HK. Updates with Winning declining to comment in paragraph 5 Jan 5 (Reuters) - Winning International Group, the world's largest bauxite shipping firm, has left the International Aluminium Institute (IAI), the industry body said on Monday after updating its member list for the new year. Singapore-based Winning becomes the second company to leave the IAI in the past six months after China Hongqiao Group 1378.HK, the world's top private-sector aluminium producer, resigned in mid-2020.
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These include state-owned Aluminum Corp of China, or Chinalco, Alcoa AA.N, Norsk Hydro NHY.OL, Rio Tinto RIO.L and Rusal 0486.HK. Updates with Winning declining to comment in paragraph 5 Jan 5 (Reuters) - Winning International Group, the world's largest bauxite shipping firm, has left the International Aluminium Institute (IAI), the industry body said on Monday after updating its member list for the new year. Singapore-based Winning becomes the second company to leave the IAI in the past six months after China Hongqiao Group 1378.HK, the world's top private-sector aluminium producer, resigned in mid-2020.
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1097.0
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2020-12-31 00:00:00 UTC
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February 2021 Options Now Available For Alcoa (AA)
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AA
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https://www.nasdaq.com/articles/february-2021-options-now-available-for-alcoa-aa-2020-12-31
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nan
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nan
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Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
The put contract at the $22.00 strike price has a current bid of $1.36. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $22.00, but will also collect the premium, putting the cost basis of the shares at $20.64 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $22.95/share today.
Because the $22.00 strike represents an approximate 4% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.18% return on the cash commitment, or 52.47% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Alcoa Corporation, and highlighting in green where the $22.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $23.50 strike price has a current bid of $1.40. If an investor was to purchase shares of AA stock at the current price level of $22.95/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $23.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.50% if the stock gets called away at the February 2021 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red:
Considering the fact that the $23.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.10% boost of extra return to the investor, or 51.78% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $22.95) to be 82%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AA shares really soar, which is why looking at the trailing twelve month trading history for Alcoa Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the February 2021 expiration.
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Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AA's trailing twelve month trading history, with the $23.50 strike highlighted in red: Considering the fact that the $23.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the February 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new February 2021 contracts and identified one put and one call contract of particular interest.
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1098.0
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2020-12-30 00:00:00 UTC
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Watch These Aerospace ETFs with the Boeing 737 MAX Back in Flight
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AA
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https://www.nasdaq.com/articles/watch-these-aerospace-etfs-with-the-boeing-737-max-back-in-flight-2020-12-30
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nan
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nan
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Boeing investors were energized to hear that a Boeing 737 Max aircraft ferried paying passengers on a U.S. flight Tuesday for the first time since the planes were grounded and placed under heavy scrutiny in mid-March of last year, after deadly crashes killed almost 350 people in Ethiopia and Indonesia over a five-month time frame.
American Airlines Flight 718 departed from Miami in the late morning and flew to New York's LaGuardia Airport, according to aviation tracking site Flightradar24.com. The plane landed ahead of schedule, shortly after 1 p.m.
AA is the first U.S. carrier to re-utilize Boeing's jetliner for passengers. The aerospace giant announced the decision in November, when the FAA approved 737 Max to return to commercial flight. In response to the FAA move, foreign airlines are adding the craft back into their rotations as well. Earlier this month, airlines in Brazil and Mexico put the plane back into service.
The jet was grounded for some 20 months, after investigators revealed that the pilots of both jets were unable to control them shortly after takeoff, due to flight control system issues that drove the nose of the 737 Max downward.
American's team is supportive of the move, and assured of the airplane's safety, with David Seymour, American’s chief operating officer, claiming that the measured reintroduction of the MAX will serve to increase passenger confidence and offer flexibility if they initially prefer to fly on other aircraft.
American also says it will accommodate any passengers who are concerned about flying on the aircraft.
"If a customer doesn't want to fly on a 737 MAX aircraft, they won't have to," the airline stated. It's offering reluctant passengers several other options, such as rebooking on the next flight without a fee, changing their itinerary to another airport – or simply canceling their trip in exchange for credit toward future travel.
Max Jets Will Be Reintroduced Slowly
Not all airlines are ready to begin using the Max just yet however.
Southwest, another U.S. airline with a large fleet of 737 Max jets, said on Tuesday that it will continue to wait before placing the crafts into service.
"The Max has not been added to our schedule for 2021 yet, so we don't have details regarding where it will fly initially once it returns to service," a Southwest representative told NPR.
For the next several days, American will use the 737 Max for two flights each day, providing roundtrip service between Miami and New York City. Starting next week, more aircraft will gradually be added to the schedule, until it ramps up to nearly 100 departures per day.
"We are taking a phased approach to return the Boeing 737 Max to service," the airline said in a note to NPR.
The airline sector has seen its ups and down in 2020, with the coronavirus wreaking havoc on the travel industry as a whole, but with new coronavirus vaccines already being deployed, analysts are optimistic that the economy will recover faster, opening up travel and benefitting airline ETFs.
Investors looking to use ETFs to play Boeing or American can look at the iShares U.S. Aerospace & Defense ETF (ITA), the Invesco Aerospace & Defense ETF (PPA), or the U.S. Global Jets ETF (JETS).
JETS seeks to track the performance of the U.S. Global Jets Index, which is composed of the exchange-listed common stock (or depository receipts) of U.S. and international passenger airlines, aircraft manufacturers, airports, and terminal services companies across the globe.
For more market trends, visit ETF Trends.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The plane landed ahead of schedule, shortly after 1 p.m. AA is the first U.S. carrier to re-utilize Boeing's jetliner for passengers. The aerospace giant announced the decision in November, when the FAA approved 737 Max to return to commercial flight. In response to the FAA move, foreign airlines are adding the craft back into their rotations as well.
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In response to the FAA move, foreign airlines are adding the craft back into their rotations as well. The plane landed ahead of schedule, shortly after 1 p.m. AA is the first U.S. carrier to re-utilize Boeing's jetliner for passengers. The aerospace giant announced the decision in November, when the FAA approved 737 Max to return to commercial flight.
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The plane landed ahead of schedule, shortly after 1 p.m. AA is the first U.S. carrier to re-utilize Boeing's jetliner for passengers. The aerospace giant announced the decision in November, when the FAA approved 737 Max to return to commercial flight. In response to the FAA move, foreign airlines are adding the craft back into their rotations as well.
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The plane landed ahead of schedule, shortly after 1 p.m. AA is the first U.S. carrier to re-utilize Boeing's jetliner for passengers. The aerospace giant announced the decision in November, when the FAA approved 737 Max to return to commercial flight. In response to the FAA move, foreign airlines are adding the craft back into their rotations as well.
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1099.0
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2020-12-15 00:00:00 UTC
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Alcoa Stock Looks Overvalued After 300% Recovery
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AA
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https://www.nasdaq.com/articles/alcoa-stock-looks-overvalued-after-300-recovery-2020-12-15
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nan
|
nan
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After more than a 300% rise since its March lows of this year, at the current price of close to $23 per share, Alcoa stock (NYSE: AA) looks overvalued. Alcoa’s stock has rallied from $5.48 to $22.71 off the recent bottom compared to the S&P which increased over 60% during the same period. The stock has outperformed the broader market in the last 8 months as aluminum prices rebounded and started to rise since April following the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. The stock is currently slightly above its December 2019 level. Also, with aluminum output set to drop in the next few years due to the restructuring program, the company’s revenue and earnings growth will likely be slower than anticipated earlier. With aluminum prices also not expected to see any major upside in the near term, Alcoa’s stock price is likely to drop almost 20% from its current level. Our dashboard What Factors Drove -58% Change In Alcoa Stock Between 2017 And Now? provides the key numbers behind our thinking.
Some of the stock price decline between 2017-2019 was justified by more than a 10% decrease in Alcoa revenues during this period. With Alcoa’s revenue declining in 2019 and dropping below its 2017 level, the P/S (price-to-sales) multiple has seen a continuous drop over the years as the stock price also declined. The stock also suffered with Alcoa reporting losses in 2019. Alcoa’s P/S multiple dropped from 0.9x in 2017 to below 0.4x in 2019. The multiple crashed sharply in 2020 following the outbreak of the pandemic which led to a decline in aluminum prices. However, with the recovery in aluminum prices as lockdowns are being lifted and sentiment is improving, the multiple has recovered over recent months and currently stands at 0.4x. We believe that the company’s P/S multiple is likely to drop to below 0.35x in the near-term and this is expected to lead to a downside in the stock price.
Where is the stock headed?
Aluminum prices were dropping since late 2019 as an increasing number of steel players were shedding capacity due to lower demand from automobiles. Also, primary aluminum prices were affected due to increased exports of semi products from China. To make things worse, the global spread of coronavirus led to lockdown in various cities across the globe, which affected industrial and economic activity. The aluminum demand from industry players affects global aluminum price levels, in turn impacting the company’s price realization for its products. Lower demand from construction and automobile players, has led to a drop in global aluminum prices from $1,820/ton in January 2020 to $1,570/ton in June 2020. This was reflected in the Q2 2020 results where Alcoa’s revenues decreased 21% y-o-y. However, with the gradual lifting of lockdowns, aluminum prices have rebounded strongly since June and have increased to over $2,000/ton in December 2020. Increase in price realization was reflected in the 10% sequential rise in Alcoa’s revenues in Q3 2020 (compared to Q2 2020).
We believe that the aluminum prices have peaked for now and will not see any major upside in the near term. The recent spike in Covid-positive cases could, in fact, lead to some drop in global aluminum prices on fears on more lockdowns. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Brazil and Russia. Also, as a part of a restructuring, Alcoa has put part of its aluminum assets under review. This is likely to hit the top line adversely in the near term. Though, margins are likely to improve from 2021 as the company shifts its focus to its core assets and operations, subdued revenue growth will take a toll on earnings. Thus, lower earnings growth, lower production, and no major upside in aluminum prices is expected to lead to Alcoa’s stock dropping to below $20, reflecting almost 20% downside from its current level.
What if you’re looking for a more balanced portfolio instead? Here’s a high quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk, it has outperformed the broader market year after year, consistently.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After more than a 300% rise since its March lows of this year, at the current price of close to $23 per share, Alcoa stock (NYSE: AA) looks overvalued. Also, with aluminum output set to drop in the next few years due to the restructuring program, the company’s revenue and earnings growth will likely be slower than anticipated earlier. Aluminum prices were dropping since late 2019 as an increasing number of steel players were shedding capacity due to lower demand from automobiles.
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After more than a 300% rise since its March lows of this year, at the current price of close to $23 per share, Alcoa stock (NYSE: AA) looks overvalued. With aluminum prices also not expected to see any major upside in the near term, Alcoa’s stock price is likely to drop almost 20% from its current level. The aluminum demand from industry players affects global aluminum price levels, in turn impacting the company’s price realization for its products.
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After more than a 300% rise since its March lows of this year, at the current price of close to $23 per share, Alcoa stock (NYSE: AA) looks overvalued. With aluminum prices also not expected to see any major upside in the near term, Alcoa’s stock price is likely to drop almost 20% from its current level. With Alcoa’s revenue declining in 2019 and dropping below its 2017 level, the P/S (price-to-sales) multiple has seen a continuous drop over the years as the stock price also declined.
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After more than a 300% rise since its March lows of this year, at the current price of close to $23 per share, Alcoa stock (NYSE: AA) looks overvalued. With aluminum prices also not expected to see any major upside in the near term, Alcoa’s stock price is likely to drop almost 20% from its current level. With Alcoa’s revenue declining in 2019 and dropping below its 2017 level, the P/S (price-to-sales) multiple has seen a continuous drop over the years as the stock price also declined.
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