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2022-12-06 00:00:00+00:00	AA	Sum Up The Parts: XME Could Be Worth $58	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 SPDR S&P Metals & Mining ETF (Symbol: XME), we found that the implied analyst target price for the ETF based upon its underlying holdings is $58.16 per unit. With XME trading at a recent price near $52.47 per unit, that means that analysts see 10.83% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XME's underlying holdings with notable upside to their analyst target prices are Coeur Mining Inc (Symbol: CDE), Alcoa Corporation (Symbol: AA), and Peabody Energy Corp (Symbol: BTU). Although CDE has traded at a recent price of $3.18/share, the average analyst target is 15.94% higher at $3.69/share. Similarly, AA has 13.12% upside from the recent share price of $46.52 if the average analyst target price of $52.62/share is reached, and analysts on average are expecting BTU to reach a target price of $33.25/share, which is 12.45% above the recent price of $29.57. Below is a twelve month price history chart comparing the stock performance of CDE, AA, and BTU: Combined, CDE, AA, and BTU represent 9.30% of the SPDR S&P Metals & Mining ETF. 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 SPDR S&P Metals & Mining ETF XME $52.47 $58.16 10.83% Coeur Mining Inc CDE $3.18 $3.69 15.94% Alcoa Corporation AA $46.52 $52.62 13.12% Peabody Energy Corp BTU $29.57 $33.25 12.45% 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 » Also see: Stocks Crossing Above Their 200 Day Moving Average COO market cap history GGS Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-30 00:00:00+00:00	AA	Noteworthy Wednesday Option Activity: AA, NVDA, RKT	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 50,223 contracts have traded so far, representing approximately 5.0 million underlying shares. That amounts to about 83.2% of AA's average daily trading volume over the past month of 6.0 million shares. Especially high volume was seen for the $50 strike call option expiring December 02, 2022, with 11,522 contracts trading so far today, representing approximately 1.2 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $50 strike highlighted in orange: NVIDIA Corp (Symbol: NVDA) saw options trading volume of 411,426 contracts, representing approximately 41.1 million underlying shares or approximately 82% of NVDA's average daily trading volume over the past month, of 50.2 million shares. Especially high volume was seen for the $155 strike put option expiring December 02, 2022, with 27,115 contracts trading so far today, representing approximately 2.7 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $155 strike highlighted in orange: And Rocket Companies Inc Class A (Symbol: RKT) options are showing a volume of 27,312 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 81.3% of RKT's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $8 strike call option expiring December 02, 2022, with 16,101 contracts trading so far today, representing approximately 1.6 million underlying shares of RKT. Below is a chart showing RKT's trailing twelve month trading history, with the $8 strike highlighted in orange: For the various different available expirations for AA options, NVDA options, or RKT options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Cheap REIT Stocks AFSI market cap history SOR Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-23 00:00:00+00:00	AA	January 2023 Options Now Available For Alcoa (AA)	Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the January 2023 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new January 2023 contracts and identified one put and one call contract of particular interest. The put contract at the $48.00 strike price has a current bid of $3.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $48.00, but will also collect the premium, putting the cost basis of the shares at $44.40 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $48.39/share today. Because the $48.00 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 99%. 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 7.50% return on the cash commitment, or 62.22% 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 $48.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $49.00 strike price has a current bid of $3.80. If an investor was to purchase shares of AA stock at the current price level of $48.39/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $49.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.11% if the stock gets called away at the January 2023 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 $49.00 strike highlighted in red: Considering the fact that the $49.00 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 7.85% boost of extra return to the investor, or 65.14% 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 $48.39) to be 67%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the S&P 500 » Also see: Top Ten Hedge Funds Holding SGLB ETTX Videos PAAS Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-22 00:00:00+00:00	AA	Notable Tuesday Option Activity: CF, MOS, AA	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in CF Industries Holdings Inc (Symbol: CF), where a total volume of 11,185 contracts has been traded thus far today, a contract volume which is representative of approximately 1.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 42.3% of CF's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $125 strike call option expiring January 20, 2023, with 1,510 contracts trading so far today, representing approximately 151,000 underlying shares of CF. Below is a chart showing CF's trailing twelve month trading history, with the $125 strike highlighted in orange: Mosaic Co (Symbol: MOS) saw options trading volume of 17,717 contracts, representing approximately 1.8 million underlying shares or approximately 42% of MOS's average daily trading volume over the past month, of 4.2 million shares. Particularly high volume was seen for the $52.50 strike call option expiring December 16, 2022, with 2,137 contracts trading so far today, representing approximately 213,700 underlying shares of MOS. Below is a chart showing MOS's trailing twelve month trading history, with the $52.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 27,771 contracts, representing approximately 2.8 million underlying shares or approximately 41.6% of AA's average daily trading volume over the past month, of 6.7 million shares. Particularly high volume was seen for the $50 strike call option expiring January 20, 2023, with 1,670 contracts trading so far today, representing approximately 167,000 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for CF options, MOS options, or AA options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: PCK Dividend History Institutional Holders of ONEX XPP Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-21 00:00:00+00:00	AA	Alcoa backs Rusal's call for LME to reveal origin of all metal stocks	By Pratima Desai LONDON, Nov 21 (Reuters) - U.S.-based aluminium producer Alcoa AA.N supports an idea proposed last week by Russian producer Rusal for the London Metal Exchange to provide details about the origin of all metal in LME approved warehouses. Aluminium producer Rusal RUAL.MM, 0486.HK and Russian metal have not been directly targeted by sanctions imposed on Russia after it invaded Ukraine in February. But Alcoa has actively campaigned to ban Russian metal from being traded and stored on the LME. It is concerned that large amounts of aluminium in the LME system could distort pricing. The LME after an industry consultation in October decided there would be no boycott of Russian metal as a significant portion of the market was still planning to buy it next year. Instead, the world's largest and oldest forum for trading metals said it will publish regular reports from January 2023 detailing the percentage of Russian metal stored under warrant in LME warehouses to provide transparency. But Rusal has called for the LME to start regularly disclosing the origin of all metal stocks on warrant rather than singling out Russian metal. Alcoa said in an emailed statement to Reuters: "We support proposals that would provide market participants with more data, including monthly reports that would disclose the origin of all metal stocks on warrant." "The important issue at present is to ensure that the market has increased visibility on Russian-origin aluminum, which will allow both the LME and market participants to carefully monitor this situation." The LME last week said it was considering the format of the monthly report it intends to publish and will work to ensure this best meets the need of all stakeholders. Rusal is the world's largest aluminium producer outside China accounting for 6% of global supplies estimated at around 70 million tonnes this year. Banning its metal from the exchange could create a price surge, benefiting other producers. Rusal has consistently denied it would deliver aluminium to LME warehouses. Data from the exchange shows Russian aluminium in LME warehouses at just 17.7% of the total at 586,225 tonnes as of October 28. Over the weekend, Rusal told Reuters its sales had already exceeded 76% of its primary aluminium and value added production for 2023, confirming an earlier source-based Reuters report. Other producers have also publicly called for a ban on Russian metal. Alcoa is also lobbying for a U.S. ban on Russian aluminium imports. (Reporting by Pratima Desai; editing by Jane Merriman) ((pratima.desai@thomsonreuters.com; +44 207 513 5681;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-17 00:00:00+00:00	AA	Russia's Rusal calls for LME to disclose origin of all metal stocks	This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds details, quotes, context MOSCOW, Nov 17 (Reuters) - Russian aluminium producer Rusal 0486.HK has called for the London Metal Exchange (LME) to start regularly disclosing the origin of all metal stocks on warrant rather than singling out Russia as proposed, it said in a letter. Russia is a major global producer of aluminium, and Rusal itself is the world's largest aluminium producer outside China. Neither the company, nor the Russia-produced metal have been directly targeted by sanctions imposed on Moscow after it sent troops to Ukraine on Feb. 24. "From January the LME plans to publish a monthly report on the percentage of live Russian metal on warrant," Rusal said in a letter to the LME welcoming the decision not to delist its brands from the exchange. "We are naturally concerned that any such report would be restricted to Russian metal only," it said, adding that the LME's report, covering all regions, comes once a year - in early April. "In order to best serve the market through transparency, without singling out any specific origin or producer, we seek your confirmation that any future reports would contain the split of metal from all regions, similar to the annual release," the Russian producer added. Rusal maintains a solid sales book moving in to 2023, and has no intention of delivering its metal to the exchange, it said in the letter to the LME dated Wednesday and released on Thursday. U.S.-based aluminium producer Alcoa AA.N has been publicly calling for Russian metal to be excluded from being traded and stored on the exchange. Several other producers have also called for a ban publicly. However, sources familiar with the matter told Reuters in October that commodity trader Glencore GLEN.L would buy aluminium from Rusal next year and that the Russian producer had already sold 76% of its primary aluminium and value added products for 2023. (Reporting by Polina Devitt, Anastasia Lyrchikova and Pratima Desai; editing by Tomasz Janowski and Elaine Hardcastle) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-11 00:00:00+00:00	AA	Noteworthy Friday Option Activity: KBH, AA, CHPT	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in KB Home (Symbol: KBH), where a total volume of 15,184 contracts has been traded thus far today, a contract volume which is representative of approximately 1.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 92.4% of KBH's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $35 strike put option expiring January 20, 2023, with 6,637 contracts trading so far today, representing approximately 663,700 underlying shares of KBH. Below is a chart showing KBH's trailing twelve month trading history, with the $35 strike highlighted in orange: Alcoa Corporation (Symbol: AA) options are showing a volume of 68,350 contracts thus far today. That number of contracts represents approximately 6.8 million underlying shares, working out to a sizeable 83.7% of AA's average daily trading volume over the past month, of 8.2 million shares. Especially high volume was seen for the $50 strike call option expiring November 11, 2022, with 4,221 contracts trading so far today, representing approximately 422,100 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $50 strike highlighted in orange: And ChargePoint Holdings Inc (Symbol: CHPT) saw options trading volume of 61,979 contracts, representing approximately 6.2 million underlying shares or approximately 83% of CHPT's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $13.50 strike call option expiring November 18, 2022, with 22,532 contracts trading so far today, representing approximately 2.3 million underlying shares of CHPT. Below is a chart showing CHPT's trailing twelve month trading history, with the $13.50 strike highlighted in orange: For the various different available expirations for KBH options, AA options, or CHPT options, visit StockOptionsChannel.com. Today's Most Active Call & Put Options of the S&P 500 » Also see: Entertainment Dividend Stocks GOLF Dividend History Institutional Holders of SPXT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-11-11 00:00:00+00:00	AA	Why Alcoa, Chevron, and Freeport-McMoRan Stocks Sizzled on Friday	What happened Commodity stocks flew high on Friday, with some even clocking double-digit percentage gains during the day. Some of the biggest gainers included Alcoa (NYSE: AA), Chevron (NYSE: CVX), and Freeport-McMoRan (NYSE: FCX). At their highest points in Friday trading as of 1 p.m. ET, these stocks had rallied 15.8%, 3%, and 6.8%, respectively. Two C's drove Friday's rally in these stocks: China and commodity prices. And chances are, this rally could last longer than you might expect. So what China's zero-COVID policy has dealt a heavy blow to the economy and investor sentiment in recent months. With a property crisis hurting the real estate sector and COVID curbs hitting manufacturing activity, China's appetite for commodities dried up too. China is the world's largest consumer of base metals like iron, aluminum, and copper, and is also among the world's largest consumers of oil. Lower demand from the nation unsurprisingly drove prices of commodities lower, and the ripple effects could be seen in the prices of stocks across the sector. In an unexpected turn of events on Friday, China announced plans to ease some of its COVID curbs to reduce their impact on its people and the economy, according to The Wall Street Journal. Since it's the first such significant step by China to ease COVID rules, the development sent prices of nearly every major commodity surging as investors bet on a recovery in demand from the nation. That includes iron ore, aluminum, copper, zinc, and oil. Prices of zinc and aluminum, for example, jumped nearly 6% and 5%, respectively, on the London Metal Exchange on Friday, according to Bloomberg. Copper prices hit levels last seen in June, and crude oil prices were up around 2.5% as of this writing. Friday also brought more cheer to the commodity and stock markets after the latest Consumer Price Index (CPI) data reflected a slower-than-expected growth in inflation in the U.S. in October. Combined, the two factors gave investors a big reason to buy commodity stocks, especially shares of prominent companies. AA data by YCharts While Alcoa is the world's largest producer of alumina, which is used to produce aluminum, Freeport-McMoRan is among the world's largest producers of copper. Chevron, for its part, is one of the leading oil and gas producers in the world. Now what With prices of base metals falling sharply in recent months, both Alcoa and Freeport-McMoRan realized significantly lower prices on their sales volumes in the third quarter. Alcoa even slashed its guidance for alumina and bauxite shipments for 2022, partly because of lower demand. It should therefore come as no surprise to see the market bid these languishing stocks higher on Friday after metal prices rebounded. Chevron, though, is an outlier, having hugely outperformed the markets so far this year. With oil and gas prices skyrocketing this year, Chevron has made boatloads of money. In the third quarter, it generated record cash flow from operations, and its quarterly net income was the second highest in history. Chevron stock's move on Friday clearly indicates that investors still see an upside in the oil stock even after its stupendous rally in 2022 and along with that, also expect a big dividend raise from the oil stock in early 2023. 10 stocks we like better than Chevron 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 Chevron 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 November 7, 2022 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.
2022-11-04 00:00:00+00:00	AA	Why Alcoa, Southern Copper, and Other Metal Mining Stocks Are Soaring Today	What happened Century Aluminum Company (NASDAQ: CENX) shares are leading metal stocks higher with a 10.9% advance as of 2:13 p.m. ET, followed closely by similar gains from Alcoa (NYSE: AA), Southern Copper (NYSE: SCCO), and Rio Tinto Group (NYSE: RIO). While metal pricing has been tepid of late, headlines suggest it might be on the verge of improvement. That's far from being a guarantee, however. So what Thank Alcoa, mostly. The aluminum company is publicly calling for government sanctions on metals exported from Russia, as well as bans on metals sold to Russian buyers. Separately but simultaneously, Alcoa is requesting the London Metal Exchange delist any Russian metals from its trading platform. The company argues the mere presence of Russian metals in the global marketplace not only damages the credibility of the exchange, but poses the risk of future price disruption. Neither the London Metal Exchange nor any additional governments have indicated they're taking these suggested actions, which would certainly -- even if only temporarily -- buoy metal prices. The market's response clearly indicates such action is a distinct possibility, though. In addition to names like Alcoa and Century Aluminum jumping, aluminum prices are up on the order of 4% Friday. It's not just aluminum, either. Copper prices are soaring today too, up 7% on rumors that China could soon be easing its COVID-19 restrictions and subsequently reigniting economic growth. That prospective increase in demand would materialize at the same time copper supplies are set to shrink. Chinese miner MMG's Las Bambas copper mine in Peru announced on Thursday it will be scaling back operations at the site. Protests from local and nearby inhabitants continue to disrupt output, threatening an already-thin global supply of the soft metal. Of course, continued inflation also supports higher commodity prices. The Federal Reserve raised the fed funds rate another 75 basis points earlier this week in its ongoing effort to curb inflation. Language from Fed Chairman Jerome Powell, however, implies the central bank fears that continued consumer and producer price increases are likely. Now what Today's gains from companies like Southern Copper and Rio Tinto are encouraging to metal stock investors who had watched copper and aluminum prices fall since March. But, know that these sorts of underpinnings can fade as quickly as they develop. Consider this: The London Metal Exchange may opt to do nothing to bar Russia-supplied copper and aluminum from being bought and sold via its platform. It's been mulling the possibility since early last month, after all, and thus far has made no official commitment to the idea. Meanwhile, although MMG's decision to curb activities at its Las Bambas copper mine is head-turning, that mine itself only makes up a modest 2% of the world's copper supply. Other sources can offset its decreased output, like HudBay's newest project. The miner recently unveiled its initial resource estimate for its Llaguen copper mine in the Otuzco province in Peru, indicating 271 million tonnes of 0.33% copper and 83 million tonnes of 0.24% copper in addition to many other marketable metals. Investors looking for growth from the industrial metals sliver of the basic materials sector will want to wait for evidence of more sustainable price support -- like actual economic growth -- before stepping into these stocks for the long term. 10 stocks we like better than Alcoa Corporation 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 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 September 30, 2022 James Brumley 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.
2022-11-03 00:00:00+00:00	AA	Alcoa sent three letters to the LME requesting action on Russian metal	By Peter Hobson LONDON, Nov 3 (Reuters) - U.S.-based aluminium producer Alcoa AA.N wrote to the London Metal Exchange three times in September and October, asking for a boycott of Russian metal and greater disclosure on how much was in the LME system, the company said. In the letters, seen by Reuters, Alcoa expressed concerns that large amounts of Russian aluminium flowing into the LME's warehouses could distort the exchange's aluminium contract by making it reflect the price of unwanted material. While Russia has escaped official sanctions on its aluminium, copper, and nickel of the kind imposed on some sectors following its invasion of Ukraine, some Western companies have stopped accepting Russian metal. Alcoa is one of several U.S. and European metals producers that have lobbied for the LME and Western governments to restrict trade in it. In a letter to the LME dated Sept. 29 and signed by chief commercial officer Kelly Thomas, Alcoa said it and most of its customers had stopped accepting Russian material. It said that without buyers, more metal made by Russian aluminium producer Rusal 0486.HK could be deposited on the exchange, which functions as a market of last resort, leaving the LME with stocks that Alcoa said many companies and banks may not want to deal with. "As we move into 2023 ... it is easy to see a scenario where well over one million metric tons per year of Rusal metal could be put on warrant," it said. "The LME aluminium contract will be distorted because it will disproportionately reflect the discounted value of the Rusal brand." The LME declined to comment on the letters. Rusal said last week its aluminium remains in demand. Letters sent by Alcoa to the LME dated Oct. 18 and Oct. 27 said around 250,000 tonnes of aluminium that entered LME-registered warehouses in October could be Russian, and asked the LME to publish daily disclosures showing how much Russian metal was in its system. Alcoa said it had not received a response to its request. "Alcoa urges the LME to immediately delist all Russian brands, regardless of the production date," the company said in its Oct. 27 letter. (Reporting by Peter Hobson; Editing by Jan Harvey) ((Peter.hobson@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.
2022-10-31 00:00:00+00:00	AA	AA Named 'Top Dividend Stock of the S&P Metals & Mining Index' at Dividend Channel With 1.0% Yield	Alcoa Corporation (Symbol: AA) has been named as the ''Top Dividend Stock of the S&P Metals and Mining Select Industry Index'', according to Dividend Channel, which published its most recent ''DividendRank'' report. The report noted that among the components of the S&P Metals & Mining Index, AA shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at Alcoa Corporation, and favorable long-term multi-year growth rates in key fundamental data points. The report stated, ''Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research.'' The S&P Metals and Mining Select Industry Index is one of the prominent indices that covers the metals and mining industry. Click here to see the most popular ETF that follows this index, and see the components and their weights, at ETFChannel.com » The current annualized dividend paid by Alcoa Corporation is $0.4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 10/31/2022. Below is a long-term dividend history chart for AA, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. 10 Top Ranked S&P Metals & Mining Components » Also see: SFLY Historical Stock Prices VLUE market cap history Top Ten Hedge Funds Holding ARCB The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-28 00:00:00+00:00	AA	LMEWEEK-Glencore to stick with Rusal's aluminium in 2023 -sources	By Pratima Desai LONDON, Oct 27 (Reuters) - Commodity trader Glencore will buy aluminium from Rusal next year according to its contract with the Russian producer, and so far only about 10% of its current customer base is looking elsewhere, two people with direct knowledge of the matter said. Calls to ban Rusal's aluminium from the London Metal Exchange's (LME) system by U.S.-based aluminium producer Alcoa and Norway's Norsk Hydro had led the market to expect many would shun Rusal's metal next year after 2022 contracts expired. Some in the market were speculating that Glencore would also shun Rusal despite the company's close association with it. But European business groups representing consumers oppose any restrictions against Russian aluminium, saying they could put thousands of companies out of business and that those calling for measures "are either its main competitors" or have supply options that are not available to others. Rusal's RUAL.MM, 0486.HK aluminium and products are used by the transport, construction and packaging industries. Rusal has already sold 76% of its primary aluminium and value added products for next year, the sources said. They said that the world's largest producer outside China, which accounts for 6% of global output, would produce 4.2 million tonnes of primary aluminium next year. "Glencore are going to take aluminium from Rusal next year," one of the sources said, declining to detail the quantity and adding that negotiations with consumers to sell the remainder of Rusal's product were still going on. Glencore and Rusal declined to comment. Rusal in April 2020 agreed a long-term contract to supply London-listed Glencore GLEN.L with 6.9 million tonnes of aluminium. Of that, 344,760 tonnes were due to be delivered in 2020 and around 1.6 million tonnes a year between 2021 and 2024. Glencore has a 10.5% stake in EN+, which has a majority stake in Rusal. Aluminium consumers and producers have been negotiating contracts for 2023 since September. "Talks have taken longer than usual because there is so much uncertainty about aluminium demand next year," an aluminium buyer said, adding that the possibility of the LME banning Russian metal was also creating uncertainty. Earlier this month, the LME launched a discussion paper on the possibility of banning Russian aluminium, nickel and copper from being traded and stored in its system. The deadline for responses is Friday. U.S. President Joe Biden's administration is also weighing restricting imports of Russian aluminum as it charts possible responses to Moscow's military escalation in Ukraine, a person briefed on the conversations told Reuters. (Reporting by Pratima Desai; editing by Veronica Brown and Tomasz Janowski) ((pratima.desai@thomsonreuters.com; +44 207 513 5681;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-28 00:00:00+00:00	AA	Noteworthy Friday Option Activity: PFE, RWT, AA	Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Pfizer Inc (Symbol: PFE), where a total of 135,456 contracts have traded so far, representing approximately 13.5 million underlying shares. That amounts to about 62.7% of PFE's average daily trading volume over the past month of 21.6 million shares. Especially high volume was seen for the $52.50 strike call option expiring January 20, 2023, with 20,961 contracts trading so far today, representing approximately 2.1 million underlying shares of PFE. Below is a chart showing PFE's trailing twelve month trading history, with the $52.50 strike highlighted in orange: Redwood Trust Inc (Symbol: RWT) options are showing a volume of 13,113 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 59.1% of RWT's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $2.50 strike put option expiring December 15, 2023, with 12,000 contracts trading so far today, representing approximately 1.2 million underlying shares of RWT. Below is a chart showing RWT's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 53,720 contracts thus far today. That number of contracts represents approximately 5.4 million underlying shares, working out to a sizeable 57% of AA's average daily trading volume over the past month, of 9.4 million shares. Particularly high volume was seen for the $45 strike call option expiring March 17, 2023, with 10,273 contracts trading so far today, representing approximately 1.0 million underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $45 strike highlighted in orange: For the various different available expirations for PFE options, RWT 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.
2022-10-27 00:00:00+00:00	AA	COLUMN-Metal markets brace for a downturn of a different kind: Andy Home	By Andy Home LONDON Oct 27 (Reuters) - The spectre of recession has hung heavy over this year's London Metal Exchange (LME) Week festivities. The analyst consensus is that Europe's manufacturing sector is already contracting and the United States may well follow. Demand forecasts have been slashed. The International Lead and Zinc Study Group (ILZSG) now expects global zinc usage to contract by 1.9% this year. At its April meeting it was expecting 1.6% growth. The International Nickel Study Group has cut its global demand forecast from 8.6% in May to 4.2%, reflecting a slide in stainless steel production. Large amounts of aluminium are already turning up in LME warehouses as the supply chain destocks. The LME Index .LMEX, a basket of core base metals, has gone from boom to bust in double-quick time, collapsing by 29% from its all-time highs in March. But this downturn comes with three unusual characteristics which have combined to create a heady cocktail of uncertainty. RUSSIAN METAL - TAKE IT OR LEAVE IT? The status of Russian metal has been a key talking-point at the many seminars and parties this week in London. Should the LME suspend deliveries of Russian aluminium, copper and nickel or should it maintain its policy of not preempting official sanctions? Battle-lines are drawn. German copper producer AurubisNAFG.DE has joined U.S. aluminium producer AlcoaAA.N in publicly calling for an LME ban on Russian metal. Norway's Hydro NHY.OL wants government sanctions. European aluminium consumers group FACE wants the European Commission to intervene to prevent any ban, saying it would risk "the destruction of the independent downstream European aluminium industry". The deadline for responses to the LME's discussion paper is Friday. There is a lot of metal supply at stake here. Rusal produces almost four million tonnes of aluminium each year. Nornickel accounts for around 7% of global nickel supply and, critically for the LME, is a major supplier of the Class I metal deliverable against the exchange's contract. Russia produced 920,000 tonnes of refined copper last year, about 3.5% of the world's total, according to the U.S. Geological Survey. An LME ban on deliveries of Russian metal would clearly have significant ramifications for both LME and physical market pricing. More government sanctions would make an even harder impact. SMELTER PROBLEMS, LOW STOCKS The second oddity is that the downturn in pricing is coming at a time when supply in many metals is still very stressed. Europe has already lost over a million tonnes of aluminium smelting capacity due to high energy prices and it's likely to lose more as power price hedges expire. The impact on the aluminium price has been cushioned by the simultaneous downturn in spot demand and an aggressive ramp-up of production in China over the first half of the year. However, China's aluminium smelters are facing constraints too, particularly those in the drought-hit hydro province of Yunnan, an emerging hub of "green" metal production. The smelter bottleneck is most acute in zinc, reflecting both European power-related curtailments and a string of problems at other smelters around the world. Canada's CEZ has just joined the list, announcing it will close by the end of the month for preemptive cell maintenance. It doesn't yet know when it will be back. The ILZSG is forecasting another year of supply deficit for both zinc and lead next year as smelter availability reduces the flow of mined concentrate. The outlook is for continued high physical premiums, particularly in Europe and North America, and no rebuild in depleted exchange stocks. Copper is least impacted by the energy crisis and there is broad analyst consensus around The International Copper Study Group's (ICSG) forecast for the global refined market to move from supply deficit to a 155,000-tonne surplus next year. However, the modest scale of that surplus is likely to keep supply tight and, like zinc and lead, will do nothing to replenish depleted visible stocks. The conundrum of low price and low inventory seems set to continue for a while and it will become more acute if the LME were to restrict the delivery of Russian metal. GREEN TRANSITION While its sister organisations downgraded their demand forecasts for lead, nickel and zinc, the ICSG has actually lifted its demand growth estimate for this year from 1.9% to 2.2%. China's strong imports of refined copper this year have boosted the ICSG's calculation of apparent usage to 2.5%. Imports are likely to accelerate further given the drawdown in bonded warehouse stocks and the resulting super-high import premium. The country's hunger for copper seems anomalous given the well-flagged problems in the property sector, a major component of Chinese copper demand. However, it seems that copper usage, in China at least, is now finding an extra driver in the form of government investment in green transition technology. The much-hyped green booster may finally be starting to arrive and it raises the interesting question of whether Doctor Copper will retain his price relationship with the broader economic cycle or will start to move more in tune with the decarbonisation cycle. This is already happening in nickel. Although usage in electric vehicle batteries is still small relative to that of the stainless steel sector, it's growing faster and is playing an ever more important role in theglobal marketstructure. The high energy prices that are roiling both metal producers and consumers will accelerate the green transition as Europe looks to reduce its dependency on Russian fossil fuels. That means even more government funding for renewable generation capacity and for electric vehicles subsidies, bringing forward both the energy transition timetable and the draw on the metals needed to achieve it. CLOUDY OUTLOOK The world is going to need a lot more metal if it is to meet its carbon reduction targets. Unfortunately current prices are too low to incentivise the necessary investment in new mine and smelter capacity. It's a major conundrum which can be added to the puzzling mix of bearish outright pricing, existing supply disruption, potential Russian supply disruption and, in several cases, critically low exchange inventory. Confused? Don't worry. So was just about everyone else in London this week. The opinions expressed here are those of the author, a columnist for Reuters. LME metals go from boom to bust in double-quick timehttps://tmsnrt.rs/3zkodIS Market balances for copper, zinc, lead and nickelhttps://tmsnrt.rs/3DC0MgA (Editing by Kirsten Donovan) ((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.
2022-10-27 00:00:00+00:00	AA	LMEWEEK-Glencore to stick with Rusal's aluminium in 2023 -sources	By Pratima Desai LONDON, Oct 27(Reuters) - Commodity trader Glencore will buy aluminium from Rusal next year according to its contract with the Russian producer, and so far only about 10% of its current customer base is looking elsewhere, two people with direct knowledge of the matter said. Calls to ban Rusal's aluminium from the London Metal Exchange's (LME) system by U.S.-based aluminium producer Alcoa and Norway's Norsk Hydro had led the market to expect many would shun Rusal's metal next year after 2022 contracts expired. Some in the market were speculating that Glencore would also shun Rusal despite the company's close association with it. But European business groups representing consumers oppose any restrictions against Russian aluminium, saying they could put thousands of companies out of business and that those calling for measures "are either its main competitors" or have supply options that are not available to others. Rusal's RUAL.MM, 0486.HK aluminium and products are used by the transport, construction and packaging industries. Rusal has already sold 76% of its primary aluminium and value added products for next year, the sources said. They said that the world's largest producer outside China, which accounts for 6% of global output, would produce 4.2 million tonnes of primary aluminium next year. "Glencore are going to take aluminium from Rusal next year," one of the sources said, declining to detail the quantity and adding that negotiations with consumers to sell the remainder of Rusal's product were still going on. Glencore and Rusal declined to comment. Rusal in April 2020 agreed a long-term contract to supply London-listed Glencore GLEN.L with 6.9 million tonnes of aluminium. Of that, 344,760 tonnes were due to be delivered in 2020 and around 1.6 million tonnes a year between 2021 and 2024. Glencore has a 10.5% stake in EN+, which has a majority stake in Rusal. Aluminium consumers and producers have been negotiating contracts for 2023 since September. "Talks have taken longer than usual because there is so much uncertainty about aluminium demand next year," an aluminium buyer said, adding that the possibility of the LME banning Russian metal was also creating uncertainty. Earlier this month, the LME launched a discussion paper on the possibility of banning Russian aluminium, nickel and copper from being traded and stored in its system. The deadline for responses is Friday. U.S. President Joe Biden's administration is also weighing restricting imports of Russian aluminum as it charts possible responses to Moscow's military escalation in Ukraine, a person briefed on the conversations told Reuters. (Reporting by Pratima Desai; editing by Veronica Brown and Tomasz Janowski) ((pratima.desai@thomsonreuters.com; +44 207 513 5681;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-27 00:00:00+00:00	AA	Ex-Dividend Reminder: Omega Healthcare Investors, East West Bancorp and Alcoa	Looking at the universe of stocks we cover at Dividend Channel, on 10/31/22, Omega Healthcare Investors, Inc. (Symbol: OHI), East West Bancorp, Inc (Symbol: EWBC), and Alcoa Corporation (Symbol: AA) will all trade ex-dividend for their respective upcoming dividends. Omega Healthcare Investors, Inc. will pay its quarterly dividend of $0.67 on 11/15/22, East West Bancorp, Inc will pay its quarterly dividend of $0.40 on 11/15/22, and Alcoa Corporation will pay its quarterly dividend of $0.10 on 11/18/22. As a percentage of OHI's recent stock price of $31.52, this dividend works out to approximately 2.13%, so look for shares of Omega Healthcare Investors, Inc. to trade 2.13% lower — all else being equal — when OHI shares open for trading on 10/31/22. Similarly, investors should look for EWBC to open 0.56% lower in price and for AA to open 0.24% lower, all else being equal. Below are dividend history charts for OHI, EWBC, and AA, showing historical dividends prior to the most recent ones declared. Omega Healthcare Investors, Inc. (Symbol: OHI): East West Bancorp, Inc (Symbol: EWBC): Alcoa Corporation (Symbol: AA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 8.50% for Omega Healthcare Investors, Inc., 2.25% for East West Bancorp, Inc, and 0.94% for Alcoa Corporation. Free Report: Top 8%+ Dividends (paid monthly) In Thursday trading, Omega Healthcare Investors, Inc. shares are currently up about 0.5%, East West Bancorp, Inc shares are up about 1.9%, and Alcoa Corporation shares are down about 0.6% on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-27 00:00:00+00:00	AA	LMEWEEK-Pressure builds on London Metal Exchange to boycott Russia	By Peter Hobson LONDON, Oct 27 (Reuters) - Pressure is mounting on the London Metal Exchange (LME) to block Russian material from its system, with several producers calling publicly for action, which some consumer associations oppose. Russia is a large producer of aluminium, copper and nickel. These have not been targeted by sanctions imposed after the Kremlin sent troops into Ukraine. But the United States is considering restrictions on Russian aluminium and the LME, the world's biggest and oldest metals trade hub, is asking its users if it should ban Russian metal. The LME has set a deadline of Friday for responses, and some major names have taken their positions public. Aurubis, Europe's biggest copper producer, and Norwegian aluminium maker Norsk HydroNHY.OL this week called for action against Russian metal. U.S. aluminium producer Alcoa AA.N, has said it is lobbying for a U.S. ban on Russian aluminium imports and for the LME to delist Russian brands. Those wanting the LME to act say many metals users are avoiding Russian material and huge amounts of unwanted Russian metal could build up in the LME's warehouse system, damaging its credibility. "Quick action is required," said Aurubis chief Roland Harings. LME Chief Executive Matt Chamberlain said the exchange was monitoring levels of Russian metal and could take action if it thought there was a problem, without specifying what it might do. The LME declined to comment further. VESTED INTEREST European industry associations representing aluminium users said restrictions against Russian metal would likely help the producers calling for them while exposing smaller consumers to restricted supply and higher prices. "Those calling for such bans and sanctions have a vested interest in those measures that will benefit them at the expense of the vast majority of the industry," five associations said in a statement. Some producers are already charging more for their metal. Chile's Codelco, the world's biggest copper miner, has agreed with European buyers a record-high premium of $234 a tonne over benchmark LME prices for deliveries in 2023, up from around $128 in 2022. "Many European consumers don't want Russian copper, they have to look elsewhere," said a source familiar with the negotiations over premiums. Prices of nickel, copper and aluminium shot up in the weeks after Russia invaded Ukraine on Feb. 24 due to fears of disrupted supplies. CMNI3, CMCU3, CMAL3 Russian aluminium producer Rusal 0486.HK said the pressure for restrictions "looks increasingly like market distorting behaviour by some primary aluminium producers." It said it had "written in the strongest terms to the LME expressing concerns with the process and its ramifications for end users and global consumers," adding that its aluminium "remains in demand and is approaching a full order book for next year." Asked this month if it could sue the LME, Rusal said it has considered "all possible options, including this one". The head of metals at exchange operator CME Group CME.O this week said it would not block Russian metal unless government rules made it do so. Novelis, the world's largest aluminium consumer, said it was working on its response to the LME. Wieland, a copper products maker, and Trimet Aluminium declined to comment. (Reporting by Peter Hobson and Michael Hogan; editing by Pratima Desai and Jonathan Oatis) ((Peter.hobson@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.
2022-10-27 00:00:00+00:00	AA	AA December 9th Options Begin Trading	Investors in Alcoa Corporation (Symbol: AA) saw new options become available today, for the December 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new December 9th contracts and identified one put and one call contract of particular interest. The put contract at the $42.00 strike price has a current bid of $3.45. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $42.00, but will also collect the premium, putting the cost basis of the shares at $38.55 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $42.24/share today. Because the $42.00 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 99%. 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 8.21% return on the cash commitment, or 69.66% 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 $42.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $43.00 strike price has a current bid of $3.25. If an investor was to purchase shares of AA stock at the current price level of $42.24/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $43.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.49% if the stock gets called away at the December 9th 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 $43.00 strike highlighted in red: Considering the fact that the $43.00 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 7.69% boost of extra return to the investor, or 65.25% 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 $42.24) to be 65%. 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.
2022-10-25 00:00:00+00:00	AA	LMEWEEK-Norsk Hydro calls for EU, US sanctions on Russian aluminium	By Victoria Klesty OSLO, Oct 25 (Reuters) - Norwegian aluminium-maker Norsk Hydro NHY.OL called on Tuesday on the United States and the European Union to stop importing Russian aluminium onto their territories, its chief executive told Reuters. About half of Europe's aluminium production has been shut down as a result of a surge in energy costs since Russia's invasion of Ukraine, while Russian output has been unaffected. Russia's Rusal RUAL.MM, 0486.HK produces around 6% of the world's aluminium. This metal has not been targeted by Western sanctions against Russia following its invasion of Ukraine. But the U.S. is considering restrictions on Russian aluminium imports and the London Metal Exchange (LME), the biggest metals trade hub, is asking members if it should ban Russian material from its system. "We want to urge sanctions in both Europe and the US," Hydro CEO Hilde Merete Aasheim told Reuters. "Our European industry shuts down, while ... we see Russian production at the same level as before the invasion. So they are benefiting." Hydro produces most of its aluminium in Europe, Qatar, Brazil and Canada. It has no production in Russia and has stopped trading in Russian aluminium in the wake of the Feb. 24 invasion of Ukraine. Producing the metal, used in the automotive, packaging, construction industries among others, is highly energy-intensive. Without sanctions against Russian imports, the future for European production would be at risk, Aasheim said, because Europe's producers, facing soaring energy costs, would be unable to compete against Russian rivals. "It is an energy-intensive business, and when the gas has been cut from Russia we see the effect on the power prices, so what is important over time is to get in more renewable power," she said. Aasheim's comments echoed those of U.S. peer Alcoa's AA.N, which is urging the White House to block U.S. imports of the metal from Russia. With recession looming, however, some business groups say bans on Russian aluminium would decimate European industry. (Reporting by Victoria Klesty, editing by Gwladys Fouche and Terje Solsvik) ((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters Messaging: victoria.klesty.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.
2022-10-24 00:00:00+00:00	AA	LMEWEEK-Codelco expects China's copper demand to be resilient	By Pratima Desai and Clara Denina LONDON, Oct 24 (Reuters) - Chile's Codelco, the world's largest copper miner expects copper demand in China, its main consumer, to be resilient, despite slower economic growth there, its Chairman Maximo Pacheco told Reuters. China buys about half of Codelco's production and also accounts for about half of global copper consumption, which analysts estimate will be around 25 million tonnes this year. Pacheco said he was "very confident about China's economy", adding the other half of Codelco's production went to other Asian countries, Europe and South America. COVID lockdowns, a prolonged property slump and global recession have limited China's growth. Asked about the London Metal Exchange's consultation of the metals industry on its possible ban of Russian aluminium, copper and nickel from being traded and stored in its system, Pacheco said Codelco would not get involved. The West has placed sanctions on Russian energy companies after Moscow invaded Ukraine at the end of February. There are no sanctions on metal producers, but some buyers are worried that unsold Russian metal will go into the LME system because producers cannot sell it. "We will follow the discussion, but we are not a part of the decision," Pacheco said, without giving further details on why the company would not take a position. While other major players have also avoided comment, U.S.-based aluminium producer AlcoaAA.N has supported the idea of blocking Russian imports. STATE-RUN LITHIUM? Apart from leading global copper production, Chile is the world's second largest lithium producer. But while state-run Codelco dominates copper mining, the state has yet to produce lithium, leaving private companies Albemarle Corp ALB.N and SQM SQM.SN to lead its domestic industry. Pacheco said lithium mining needed to be discussed once a state-owned enterprise is created or Codelco itself has developed the expertise. Codelco in March started lithium exploration in the Salar de Maricunga region, and Chile's government has said it will establish a state firm to mine the ultra-light metal used to make electric car batteries. Codelco faces challenges linked to the redevelopment of its copper mines that mean it will produce 1.5 million tonnes of copper this year and next, compared with 1.7 million tonnes in 2021. "We will probably go back to that level (1.7 million tonnes) in four years' time," Pacheco said. He said some of the challenges were operational and that water shortages were a problem, especially in the north of Chile. In addition, the company had to contend with supply chain bottlenecks, he said, although Codelco's mines maintained operations during COVID lockdowns. Pacheco said Codelco would spend $3.5 billion this year on its mine redevelopment projects and the same amount next year, up from $2.5 billion last year. (editing by Barbara Lewis) ((pratima.desai@thomsonreuters.com; +44 207 513 5681;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-24 00:00:00+00:00	AA	Business groups say bans on Russian aluminium will decimate European industry	Oct 24 (Reuters) - Five European industry associations said on Monday they had urged European authorities to prevent sanctions, tariffs or boycotts against Russian aluminium that they said could put thousands of companies out of business. Russia's Rusal RUAL.MM, 0486.HK produces around 6% of the world's aluminium. This metal has not been targeted by Western sanctions against Russia following its invasion of Ukraine. But the U.S. is considering restrictions on Russian aluminium imports and the London Metal Exchange (LME), the biggest metals trade hub, is asking members if it should ban Russian material from its system. Some companies have said they will stop buying Russian aluminium and others, such as U.S. producer Alcoa AA.N, are lobbying for measures against Russian metal. In a joint statement, the associations said they sent a letter to EU authorities and "requested the urgent intervention of the European Commission and of EU member states against threats of bans, high tariffs or sanctions on Russian aluminium which represent an imminent and vital threat to the European aluminium industry." The statement said those boycotting or calling for measures against Russian metal "are either its main competitors or they enjoy supply options that are not available to the vast majority of the European aluminium value-chain." For smaller users of aluminium in Europe, measures against Russian metal risked "potentially thousands of company closures and tens of thousands more unemployed in Europe as a direct consequence," it said. European industry is under pressure from high inflation and rapidly slowing economic growth, while high energy prices have led to the closure of more than a million tonnes of aluminium production in Europe since 2021. In 2018, after the United States sanctioned Rusal and the LME blocked its metal, aluminium prices CMAL3 shot up 35% in a matter of days. The five associations are the Federation of Aluminium Consumers in Europe (FACE), the German Federal Association for Economic Development and Foreign Trade (BWA), the Italian Foundry Suppliers' Association (Amafond), the Italian National Association of Steels, Metals, Scrap, Hardware (Assofermet) and the Italian Foundry Association (Assofond). EXPLAINER-Will market mayhem erupt if US bans Russian aluminium? Russian aluminium producer Rusal reshuffles sales team Banning Russian aluminium would create uncertainty about LME's role -Rusal (Reporting by Peter Hobson and Pratima Desai; Editing by Bernadette Baum) ((Peter.hobson@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.
2022-10-20 00:00:00+00:00	AA	See How Alcoa Corporation Ranks Among Analysts' Top Metals Picks	A study of analyst recommendations at the major brokerages shows that Alcoa Corporation (Symbol: AA) is the #29 broker analyst pick, on average, out of the 50 stocks making up the Metals Channel Global Mining Titans Index, according to Metals Channel. The Metals Channel Global Mining Titans Index is comprised of the top fifty global leaders from the metals and mining sector. The companies listed in the Metals Channel Global Mining Titans Index are not fixed, but instead variable — updating on a continuous basis to reflect the changing market environment with respect to commodity prices, government policy and market volatility. In forming this rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the underlying components of the Metals Channel Global Mining Titans Index were ranked according to those averages. Investors often interpret analyst opinions from different angles — when companies have a low rank among analysts, it isn't necessarily the case that investors should conclude that the stock will perform poorly. It can, of course, but a bullish investor could also take the contrarian angle and read into the data that there is lots of room for upside because the stock is so out of favor. AA operates in the Metals Fabrication & Products sector, among companies like Johnson Controls International plc (JCI) which is down about 0.3% today, and Trane Technologies plc (TT) trading lower by about 0.7%. Below is a three month price history chart comparing the stock performance of AA, versus JCI and TT. AA is currently trading up about 8.8% midday Thursday. Analyst Favorites of the Metals Channel Global Mining Titans Index » Also see: Department Stores Dividend Stocks Funds Holding CERT Top Ten Hedge Funds Holding BKES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-19 00:00:00+00:00	AA	Alcoa (AA) Reports Q3 Loss, Lags Revenue Estimates	Alcoa (AA) came out with a quarterly loss of $0.33 per share versus the Zacks Consensus Estimate of $0.09. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -466.67%. A quarter ago, it was expected that this bauxite, alumina and aluminum products company would post earnings of $2.60 per share when it actually produced earnings of $2.67, delivering a surprise of 2.69%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Alcoa, which belongs to the Zacks Metal Products - Distribution industry, posted revenues of $2.85 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $3.11 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Alcoa shares have lost about 33.4% since the beginning of the year versus the S&P 500's decline of -22%. What's Next for Alcoa? While Alcoa has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Alcoa: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.51 on $2.87 billion in revenues for the coming quarter and $5.87 on $12.79 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Distribution is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Reliance Steel (RS), is yet to report results for the quarter ended September 2022. The results are expected to be released on October 27. This metals service-center company is expected to post quarterly earnings of $6.21 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. Reliance Steel's revenues are expected to be $4.16 billion, up 8.2% from the year-ago quarter. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Reliance Steel & Aluminum Co. (RS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-19 00:00:00+00:00	AA	Alcoa Q3 22 Earnings Conference Call At 5:00 PM ET	(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on Oct. 19, 2022, to discuss Q3 22 earnings results. To access the live webcast, log on to https://investors.alcoa.com/events-and-presentations/events-calendar/default.aspx To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 1673916. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 2614734. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-17 00:00:00+00:00	AA	Alcoa Corporation's (NYSE:AA) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?	With its stock down 12% over the past three months, it is easy to disregard Alcoa (NYSE:AA). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Alcoa's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. How To Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Alcoa is: 17% = US$1.2b ÷ US$7.3b (Based on the trailing twelve months to June 2022). The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.17 in profit. Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. Alcoa's Earnings Growth And 17% ROE To begin with, Alcoa seems to have a respectable ROE. And on comparing with the industry, we found that the the average industry ROE is similar at 21%. This certainly adds some context to Alcoa's moderate 19% net income growth seen over the past five years. Next, on comparing with the industry net income growth, we found that Alcoa's reported growth was lower than the industry growth of 28% in the same period, which is not something we like to see. NYSE:AA Past Earnings Growth October 17th 2022 Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Alcoa fairly valued compared to other companies? These 3 valuation measures might help you decide. Is Alcoa Making Efficient Use Of Its Profits? In Alcoa's case, its respectable earnings growth can probably be explained by its low three-year median payout ratio of 5.1% (or a retention ratio of 95%), which suggests that the company is investing most of its profits to grow its business. While Alcoa has been growing its earnings, it only recently started to pay dividends which likely means that the company decided to impress new and existing shareholders with a dividend. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 5.9%. Therefore, the company's future ROE is also not expected to change by much with analysts predicting an ROE of 14%. Conclusion In total, we are pretty happy with Alcoa's performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. As a result, the decent growth in its earnings is not surprising. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-14 00:00:00+00:00	AA	En+ says Rusal remains in full compliance with U.S. regulations	This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine Adds details, quotes, context MOSCOW, Oct 14 (Reuters) - The chairman of EN+, which owns a 57% stake in aluminium producer Rusal 0486.HK, dismissed media reports that Washington is weighing restricting imports of Russian metal, saying Rusal remained in full compliance with U.S. regulations. Media reports on the possibility of import restrictions of Russian aluminium were "irresponsible market speculation," EN+ Chairman Christopher Burnham said. Global aluminium prices soared after the news because Rusal is the world's largest aluminium producer outside China, supplying the world with 6% of its needs estimated at around 70 million tonnes this year. "The article is simply wrong ... We are committed to fulfilling our contracts in the USA and worldwide," Burnham said in a statement. Rusal was subject to U.S. sanctions between April 2018 and early 2019, when its founder, businessman Oleg Deripaska agreed to relinquish control in exchange of removal of sanctions from the aluminium producer. "When the U.S. sanctioned Rusal aluminium in that year, the LME price [the London Metal Exchange] jumped 29% and there was a scramble to find alternative material by U.S. manufacturers," Burnham said. "Irresponsible market speculation of this sort only benefits our competitors who have publicly advocated for restricting our market access, but hurts the American consumer and the U.S. economy," he added. U.S.-based aluminium producer Alcoa Inc AA.N on Thursday said it is lobbying the White House to block American imports of the metal from Russia. (Reporting by Polina Devitt; Editing by Jan Harvey and David Evans) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-13 00:00:00+00:00	AA	Alcoa asks White House to block U.S. imports of Russian aluminum	(Repeating for more subscribers, no changes) (Adds background, details) By Ernest Scheyder Oct 13 (Reuters) - U.S.-based aluminum producer Alcoa Inc on Thursday said it is lobbying the White House to block American imports of the metal from Russia following Moscow's latest military escalation in Ukraine. Reuters reported this week that President Joe Biden's administration was considering a range of options related to imports of Russian aluminum, including possibly blocking Rusal , the world's largest aluminum producer outside China, from selling its products in the United States. In March, Biden banned American imports of Russian oil and other energy products. Aluminum was exempt due in part to concerns that such a step could boost consumer prices. Aluminum is used in a range of consumer products as well as airplanes, automobiles and other heavy machinery. As Russia's invasion of Ukraine has dragged on this year, Washington has been left with fewer Russian industries to sanction, fueling interest in blocking American purchases of Russian aluminum. Moscow bombarded Ukraine with more than 100 missiles this week, killing at least 26 people in what Biden called a "brutal" attack. "Alcoa believes that the U.S. government and other countries should sanction Russian aluminum," spokesperson Jim Beck said in an emailed statement to Reuters on Thursday. The company stopped buying from Russian businesses and selling into Russia in March. Separately, Alcoa said it has asked the London Metal Exchange to delist Russian aluminum, saying the global contract for the metal "will be disproportionately influenced by one brand that much of the Western world has rejected and would not properly reflect supply and demand dynamics." Rusal did not immediately respond to a request for comment. Any move against Rusal or Russia's aluminum industry would likely benefit Alcoa as well as its non-Russian peers. Century Aluminum Co did not respond to requests for comment. Rio Tinto , which produces aluminum as well as other metals, declined to comment. (Reporting by Ernest Scheyder; Additional reporting by Trevor Hunnicutt; Editing by Jonathan Oatis and David Gregorio) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) Keywords: UKRAINE CRISIS/USA ALCOA CORP (UPDATE 1, REPEAT) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-13 00:00:00+00:00	AA	Interesting AA Put And Call Options For December 2nd	Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the December 2nd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new December 2nd contracts and identified one put and one call contract of particular interest. The put contract at the $39.00 strike price has a current bid of $3.85. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $39.00, but will also collect the premium, putting the cost basis of the shares at $35.15 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $39.23/share today. Because the $39.00 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 99%. 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 9.87% return on the cash commitment, or 72.00% 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 $39.00 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 $3.75. If an investor was to purchase shares of AA stock at the current price level of $39.23/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 11.52% if the stock gets called away at the December 2nd 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 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 9.56% boost of extra return to the investor, or 69.72% 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 $39.23) to be 66%. 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.
2022-10-13 00:00:00+00:00	AA	Will Alcoa (AA) Disappoint in Q3 Earnings on Cost Woes?	Alcoa Corporation AA is scheduled to release third-quarter 2022 earnings numbers on Oct 19, after market close. The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by approximately 61% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters. Let’s see how things are shaping up for Alcoa this earnings season. Alcoa Price and EPS Surprise Alcoa price-eps-surprise \| Alcoa Quote Factors to Note Increased shipments in the Bauxite, Alumina and Aluminum segments are likely to have aided Alcoa’s top line in the third quarter. Improved refinery demand is expected to have driven shipments at the Bauxite segment, which should reflect in the segment’s sales. The Zacks Consensus Estimate for Bauxite segment total sales (third-party sales + intersegment sales) indicates a 2.6% rise from the year-ago reported figure. Higher shipments are expected to have boosted sales in the Alumina segment. The Zacks Consensus Estimate for total sales (third-party sales + intersegment sales) at the Alumina segment suggests an 18% jump from the year-ago reported number.2 However, logistics challenges and labor shortages are likely to have weighed on Alcoa’s third-quarter performance. High raw material and production costs and energy costs might have dented the company’s bottom line in the to-be-reported quarter. What Does the Zacks Model Say? Our proven model does not conclusively predict an earnings beat for Alcoa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here. Earnings ESP: Alcoa has an Earnings ESP of -29.06% as the Most Accurate Estimate is pegged at 18 cents, lower than the Zacks Consensus Estimate of 25 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Alcoa currently carries a Zacks Rank #5 (Strong Sell). Highlights of Q2 Earnings Alcoa’s second-quarter 2022 adjusted earnings of $2.67 per share surpassed the Zacks Consensus Estimate of $2.60 per share. The bottom line surged 79.2% year over year. Total revenues of $3.64 billion outperformed the Zacks Consensus Estimate by 4.33%. The top line jumped 28.6% year over year. Stocks to Consider Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season: Parker-Hannifin Corporation PH has an Earnings ESP of +0.12% and a Zacks Rank #3. The company is slated to release first-quarter fiscal 2023 (ended Sep 30, 2022) results on Nov 3. Parker-Hannifin’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 11.1%. Emerson Electric Co. EMR has an Earnings ESP of +0.63% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2. Emerson’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Emerson Electric Co. (EMR): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report ParkerHannifin Corporation (PH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-13 00:00:00+00:00	AA	AZZ's Q2 Earnings and Revenues Miss Estimates, Rise Y/Y	AZZ Inc. AZZ reported second-quarter fiscal 2023 (ended Aug 31, 2022) operating earnings of $1.24 per share, which lagged the Zacks Consensus Estimate of $1.82 by 31.9%. The bottom line increased 68.4% from the year-ago quarter’s earnings. The year-over-year improvement was due to strong performance from both segments. GAAP loss per share in the reported quarter was $1.91 against earnings of 76 cents per share in the prior-year quarter. Total Revenues Operating revenues of $406.7 million lagged the Zacks Consensus Estimate of $501 million by 18.8%. The top line increased 88.4% from the prior-year quarter, primarily due to the first full-quarter contribution from AZZ Precoat Metals. AZZ Inc. Price, Consensus and EPS Surprise AZZ Inc. price-consensus-eps-surprise-chart \| AZZ Inc. Quote Segment Revenues Metal Coating: Revenues from the segment increased 26.2% to $165.8 million from $131.4 million in the prior-year quarter. The year-over-year improvement was due to pricing strategies that offset the inflationary costs. Precoat Metal: The segment, acquired on May 13, 2022, generated revenues of $240.9 million in the reported quarter. The segment’s higher sales were driven primarily by a significantly higher average selling price from paint cost pass-through. Highlights of the Release The operating income in the fiscal second quarter was up 222.1% year over year to $64.1 million. AZZ incurred interest expenses of $28.1 million, up 1552.9% from the year-ago period. As of Aug 31, 2022, the company had cash and cash equivalents of $14.3 million. Total capital expenditure in the reported quarter was $15.2 million. On Jun 23, 2022, it announced a definitive agreement to sell its majority stake of nearly 60% in the Infrastructure Solutions Segment (AIS) to Fernweh Group LLC to focus on metal coating and galvanizing solutions and gain from the favorable trend in end markets. On Sep 30, 2022, the company closed this transaction. The company returned $4.2 million to its shareholders as dividends. It did not purchase company stocks in the second quarter, and nearly $55.2 million remains on the current authorization with no expiration. Zacks Rank AZZ currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Upcoming Releases Alcoa Corporation AA is scheduled to announce third-quarter 2022 results on Oct 19 after market close. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 25 cents per share. AA’s long-term (three to five years) earnings growth is projected at 9.7%. The company delivered an average earnings surprise of 9.6% in the last four quarters. A. O. Smith Corporation AOS is scheduled to announce third-quarter 2022 results on Oct 27 before the market opens. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 89 cents per share. AOS’ long-term earnings growth is projected at 9%. The company delivered an average earnings surprise of 9.8% in the last four quarters. AGCO Corporation AGCO is expected to announce third-quarter 2022 results on Oct 27. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at $3.11 per share. AGCO’s long-term earnings growth is projected at 9.6%. The company delivered an average earnings surprise of 37.5% in the last four quarters. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report AGCO Corporation (AGCO): Free Stock Analysis Report A. O. Smith Corporation (AOS): Free Stock Analysis Report AZZ Inc. (AZZ): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-12 00:00:00+00:00	AA	Notable Wednesday Option Activity: OKTA, AXP, AA	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Okta Inc (Symbol: OKTA), where a total volume of 19,255 contracts has been traded thus far today, a contract volume which is representative of approximately 1.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 45.3% of OKTA's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $61 strike call option expiring October 14, 2022, with 2,128 contracts trading so far today, representing approximately 212,800 underlying shares of OKTA. Below is a chart showing OKTA's trailing twelve month trading history, with the $61 strike highlighted in orange: American Express Co. (Symbol: AXP) options are showing a volume of 13,662 contracts thus far today. That number of contracts represents approximately 1.4 million underlying shares, working out to a sizeable 45.2% of AXP's average daily trading volume over the past month, of 3.0 million shares. Especially high volume was seen for the $130 strike put option expiring October 21, 2022, with 1,360 contracts trading so far today, representing approximately 136,000 underlying shares of AXP. Below is a chart showing AXP's trailing twelve month trading history, with the $130 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) saw options trading volume of 39,054 contracts, representing approximately 3.9 million underlying shares or approximately 45% of AA's average daily trading volume over the past month, of 8.7 million shares. Especially high volume was seen for the $41 strike call option expiring October 14, 2022, with 5,002 contracts trading so far today, representing approximately 500,200 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $41 strike highlighted in orange: For the various different available expirations for OKTA options, AXP 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.
2022-10-12 00:00:00+00:00	AA	US STOCKS-Wall St struggles to stay higher on rate-hike worries; Fed minutes awaited	By Shreyashi Sanyal and Ankika Biswas Oct 12 (Reuters) - U.S. stocks crept higher on Wednesday, struggling through fresh concerns over rising inflation and borrowing costs following a surprise rise in September producer prices and ahead of minutes from the Federal Reserve's last meeting. The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than an 8.7% increase in August. After five days of selloff, the S&P 500 .SPX and the Nasdaq .IXIC were trading higher even though there are mounting fears that aggressive rate hikes by the Fed could tip the world's largest economy into a recession. "It's stubborn and some people are hoping that we had peak inflation and it's going to come down quickly," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey. "It is not going to be that way. That's what the Fed has been looking at and that's why they're raising rates the way they are. This will take time and this is not going to be a quick thing." In the afternoon, investors will scrutinize the Fed's September meeting minutes for more clarity on the central bank's rate hike trajectory. Money markets are pricing in a 92% chance of another 75-basis-point hike in November. FEDWATCH "The thing we're looking for from the FOMC is some evidence that it is open-minded, that they will consider being a lot more flexible," said Hugh Johnson, chief economist of Hugh Johnson Economics at Albany, New York. "The comments are going to be just as hawkish as they have been." Investors also await the highly-anticipated consumer prices report on Thursday, which is expected to have picked up in September. At 12:35 p.m. ET, the Dow Jones Industrial Average .DJI was up 108.35 points, or 0.37%, at 29,347.54, the S&P 500 .SPX was up 4.96 points, or 0.14%, at 3,593.80, and the Nasdaq Composite .IXIC was up 3.87 points, or 0.04%, at 10,430.06. Chip shares including Nvidia Corp NVDA.O, Qualcomm Inc QCOM.O Micron Technology Inc MU.O, Advanced Micro Devices AMD.O and Intel Corp INTC.O were mixed. The United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain. The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said. PepsiCo Inc PEP.O gained 4.45% after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases. Boeing Co BA.N slipped 1.84% after Credit Suisse started its coverage on the planemaker with an "underperform" rating and Street low price target. Aluminum producer Alcoa Corp AA.N inched up 2.11% following a media report that the United States is considering a complete ban on Russian aluminum in response to Moscow's military escalation in Ukraine. Declining issues outnumbered advancers for a 1.45-to-1 ratio on the NYSE and advancers for a 1.22-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week high and 65 new lows, while the Nasdaq recorded 10 new highs and 354 new lows. (Reporting by Ankika Biswas, Shreyashi Sanyal & Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-12 00:00:00+00:00	AA	US STOCKS-Wall St ends volatile day lower after Fed minutes, PPI	By Caroline Valetkevitch NEW YORK, Oct 12 (Reuters) - U.S. stocks ended a choppy session slightly lower on Wednesday after minutes from the last Federal Reserve meeting showed policymakers agreed they needed to maintain a more restrictive policy stance. The September meeting minutes also showed many Fed officials stressed the cost of not doing enough to bring down inflation. Recent market weakness has been tied in part to increasing fears among investors that aggressive rate hikes by the Fed could tip the world's largest economy into a recession. Rate-sensitive utilities .SPLRCU were down 3.4% while real estate .SPLRCR fell 1.4%. They led percentage declines among S&P sectors for the day. Fed officials in the recent speeches have come out "in unison regarding the Fed's commitment toward curtailing inflation and staying the course," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "There's an understanding now the Fed is going to keep going. The question for the market is where is the transition from 75 basis points to 50 and 25. That is what the market is focused on I think." At the September meeting, Fed officials raised interest rates by three-quarters of a percentage point for the third straight time in an effort to drive inflation down from 40-year highs. The market bounced around just after the open, with data earlier showing a surprise rise in September producer prices. The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. Still, the reading was lower than an 8.7% increase in August. The Dow Jones Industrial Average .DJI fell 28.34 points, or 0.1%, to 29,210.85, the S&P 500 .SPX lost 11.81 points, or 0.33%, to 3,577.03 and the Nasdaq Composite .IXIC dropped 9.09 points, or 0.09%, to 10,417.10. Thursday's report on U.S. consumer prices is considered even more key and has been anxiously awaited by investors, along with the start of third-quarter U.S. earnings, which kick off with results from some of the big U.S. banks on Friday. The S&P 500 financial index .SPSY ended down 0.3%. Among gainers, PepsiCo Inc PEP.O rose 4.2% after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases. Alcoa Corp AA.N jumped 5.3%. The Biden administration is weighing restricting imports of Russian aluminum as it charts possible responses to Moscow's military escalation in Ukraine, a person briefed on the conversations told Reuters. Declining issues outnumbered advancing ones on the NYSE by a 1.64-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favored decliners. The S&P 500 posted no new 52-week highs and 78 new lows; the Nasdaq Composite recorded 20 new highs and 433 new lows. Volume on U.S. exchanges was 10.01 billion shares, compared with the 11.68 billion average for the full session over the last 20 trading days. (Additional reporting by Ankika Biswas, Shreyashi Sanyal & Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva, Arun Koyyur and Deepa Babington) ((caroline.valetkevitch@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.
2022-10-12 00:00:00+00:00	AA	Analysts Estimate Alcoa (AA) to Report a Decline in Earnings: What to Look Out for	The market expects Alcoa (AA) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 19. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Zacks Consensus Estimate This bauxite, alumina and aluminum products company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -87.8%. Revenues are expected to be $3 billion, down 3.6% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 36.67% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Alcoa? For Alcoa, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -29.06%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Alcoa will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Alcoa would post earnings of $2.60 per share when it actually produced earnings of $2.67, delivering a surprise of +2.69%. Over the last four quarters, the company has beaten consensus EPS estimates four times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Alcoa doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-11 00:00:00+00:00	AA	New Strong Sell Stocks for October 11th	Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today: AppLovin APP is a providerof technology platform which enables developers to market, monetize, analyse and publish their apps. The Zacks Consensus Estimate for its current year earnings has been revised 56.5% downward over the last 60 days. Aluminum Corp. of China Limited ACH is engaged in the production and distribution of alumina and primary aluminium. The Zacks Consensus Estimate for its current year earnings has been revised 23.0% downward over the last 60 days. Alcoa AA is a global industry leader in bauxite, alumina and aluminium products. The Zacks Consensus Estimate for its current year earnings has been revised almost 16.8% downward over the last 60 days. View the entire Zacks Rank #5 List. Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation. >>Send me my free report on the top 5 EV stocks Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Aluminum Corporation of China Limited (ACH): Free Stock Analysis Report AppLovin Corporation (APP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-10 00:00:00+00:00	AA	Alcoa (AA) Stock Moves -0.44%: What You Should Know	Alcoa (AA) closed at $38.84 in the latest trading session, marking a -0.44% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.07%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 25.87% over the past month. This has lagged the Industrial Products sector's loss of 8.23% and the S&P 500's loss of 8.4% in that time. Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be October 19, 2022. On that day, Alcoa is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 85.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.99 billion, down 3.8% from the year-ago period. For the full year, our Zacks Consensus Estimates are projecting earnings of $6.04 per share and revenue of $12.86 billion, which would represent changes of -11.57% and +5.86%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for Alcoa. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 16.9% lower. Alcoa is currently a Zacks Rank #4 (Sell). Looking at its valuation, Alcoa is holding a Forward P/E ratio of 6.46. This represents a premium compared to its industry's average Forward P/E of 6.38. It is also worth noting that AA currently has a PEG ratio of 0.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Metal Products - Distribution was holding an average PEG ratio of 0.66 at yesterday's closing price. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries. The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-10 00:00:00+00:00	AA	Falling Aluminum Prices Will Weigh On Alcoa's Q3 Results	Alcoa (NYSE:AA) is expected to report its Q3 2022 earnings on Wednesday, October 19, reporting on a quarter that saw aluminum prices continue to face considerable pressure. We expect the company’s revenues to come in at about $2.95 billion, roughly in line with the consensus estimates, although this would mark a sequential decline of about 19% and a year-over-year decline of roughly 5%. We estimate that earnings will stand at about $0.15 per share, slightly ahead of the consensus, although this would mark a decline from levels of around $3 per share over the last quarter. So what are some of the trends that are likely to drive Alcoa’s results? See our interactive dashboard analysis on Alcoa Earnings Preview for more details on how AA’s revenues and earnings are likely to trend for the quarter. Aluminum prices have seen a considerable decline in recent months, falling from a high of about $3,800 per metric ton in March 2022 following the start of Russia’s invasion of Ukraine to levels of around $2,500 as of early July. Prices of the metal fell close to $2,200 as of the end of September. There are mounting concerns about the global economy as a steady increase in interest rates by Central banks is expected to impact global growth and demand for industrial commodities such as aluminum. Moreover, aluminum output from China has also risen as new capacity comes online after delays and production cuts seen over 2021. This is likely to put some pressure on Alcoa’s price realizations. Moreover, Alcoa’s profitability is likely to be impacted by rising energy prices and higher input costs. However, we still remain positive on AA stock. Consensus estimates point to earnings of about $6.50 per share for the full year, meaning that the stock trades at just about 6x forward earnings at the current market price of about $38 per share. Although cyclical stocks typically see lower multiples when the markets project that earnings and revenues are peaking, there are a couple of trends that still make Alcoa stock a good value. Alcoa stock has already declined by about 60% from levels seen around March 2022 and remains down almost 37% year-to-date. Moreover, rising investments in the renewable energy sector including electric vehicles, charging infrastructure, and solar & wind power plants remain secular drivers for aluminum demand. We also think that Alcoa has an edge over other aluminum producers given its strong balance sheet (net debt of just about $163 million) and also due to the fact that its facilities are largely based in the U.S., resulting in lower energy costs compared to European rivals who are highly dependent on Russian natural gas. What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016. Returns Oct 2022 MTD [1] 2022 YTD [1] 2017-22 Total [2] AA Return 11% -37% 33% S&P 500 Return 3% -23% 64% Trefis Multi-Strategy Portfolio 3% -24% 199% [1] Month-to-date and year-to-date as of 10/4/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-05 00:00:00+00:00	AA	Alcoa (AA) Dips More Than Broader Markets: What You Should Know	Alcoa (AA) closed the most recent trading day at $40.08, moving -0.37% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 16.03% over the past month. This has lagged the Industrial Products sector's loss of 2.89% and the S&P 500's loss of 3.29% in that time. Alcoa will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2022. On that day, Alcoa is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 85.85%. Meanwhile, our latest consensus estimate is calling for revenue of $2.99 billion, down 3.8% from the prior-year quarter. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $12.86 billion. These totals would mark changes of -11.13% and +5.8%, respectively, from last year. Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 16.45% lower within the past month. Alcoa is currently sporting a Zacks Rank of #4 (Sell). Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 6.63 right now. Its industry sports an average Forward P/E of 6.67, so we one might conclude that Alcoa is trading at a discount comparatively. It is also worth noting that AA currently has a PEG ratio of 0.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Metal Products - Distribution was holding an average PEG ratio of 0.68 at yesterday's closing price. The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% of all 250+ industries. The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation. >>Show me how I could profit from the metaverse! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-05 00:00:00+00:00	AA	Here is What to Know Beyond Why Alcoa (AA) is a Trending Stock	Alcoa (AA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this bauxite, alumina and aluminum products company have returned -16% over the past month versus the Zacks S&P 500 composite's -3.3% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has lost 9.5% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Alcoa is expected to post earnings of $0.29 per share for the current quarter, representing a year-over-year change of -85.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -35.8%. The consensus earnings estimate of $6.07 for the current fiscal year indicates a year-over-year change of -11.1%. This estimate has changed -16.5% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $5.52 indicates a change of -9% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed -13.5%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Alcoa. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $2.99 billion indicates a year-over-year change of -3.8%. For the current and next fiscal years, $12.86 billion and $12.7 billion estimates indicate +5.8% and -1.2% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $2.67 for the same period compares with $1.49 a year ago. Compared to the Zacks Consensus Estimate of $3.49 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +2.69%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation. >>Show me how I could profit from the metaverse! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-10-03 00:00:00+00:00	AA	Notable Monday Option Activity: LCID, AA, ADSK	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Lucid Group Inc (Symbol: LCID), where a total volume of 90,366 contracts has been traded thus far today, a contract volume which is representative of approximately 9.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.1% of LCID's average daily trading volume over the past month, of 18.8 million shares. Especially high volume was seen for the $80 strike call option expiring October 21, 2022, with 18,371 contracts trading so far today, representing approximately 1.8 million underlying shares of LCID. Below is a chart showing LCID's trailing twelve month trading history, with the $80 strike highlighted in orange: Alcoa Corporation (Symbol: AA) saw options trading volume of 37,840 contracts, representing approximately 3.8 million underlying shares or approximately 47.1% of AA's average daily trading volume over the past month, of 8.0 million shares. Particularly high volume was seen for the $20 strike put option expiring October 21, 2022, with 7,680 contracts trading so far today, representing approximately 768,000 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $20 strike highlighted in orange: And Autodesk Inc (Symbol: ADSK) options are showing a volume of 6,725 contracts thus far today. That number of contracts represents approximately 672,500 underlying shares, working out to a sizeable 46.6% of ADSK's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $167.50 strike put option expiring October 14, 2022, with 1,901 contracts trading so far today, representing approximately 190,100 underlying shares of ADSK. Below is a chart showing ADSK's trailing twelve month trading history, with the $167.50 strike highlighted in orange: For the various different available expirations for LCID options, AA options, or ADSK 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.
2022-10-03 00:00:00+00:00	AA	Why Alcoa, Century Aluminum, and Uranium Energy Stocks Popped Today	What happened Stock markets flipped the page last week on a miserable third quarter of 2022, in which the S&P 500 fell 9% in September alone, bringing year-to-date losses for 2022 to 25%. Metals stocks in particular are joining the rally today, with shares of aluminum producers Alcoa (NYSE: AA) and Century Aluminum (NASDAQ: CENX) gaining 10% and 17%, respectively. Nuclear fuel miner Uranium Energy (NYSEMKT: UEC) isn't looking too shabby, either, booking a respectable 6.7% gain as of 12:25 p.m. ET on Monday. So what After Russia announced the illegal annexation of four more Ukrainian regions over the weekend, it is inviting a new round of sanctions from the West. Individual businessmen and Russian officials are the primary targets, but CNBC reports that shell companies formed to evade previous sanctions are also being included. On a related note, the London Metal Exchange (LME) is reportedly preparing to ban trading in Russian aluminum, curtailing global supplies of the metal at the same time as Bloomberg reports that demand for it in China is starting to revive. At the same time, OilPrice.com reports that Washington -- while not yet banning the Russian supplies of the metal -- is working to ease its dependence on Russian uranium, and looking to support U.S.-based suppliers and enrichers of the alternative fuel source. Shares of Century Aluminum actually fell steeply on Friday despite the rumor of the aluminum trading ban. This could be partly because investment bank Goldman Sachs (NYSE: GS) has discounted the prospect of Russian metals being banned. But part of the reason for the stock's decline could also be a downgrade by Wolfe Research on Friday, which warned of low aluminum prices and high production costs due to surging energy costs. That briefly moved Century lower, and Alcoa along with it. But now both stocks have come roaring back in the wake of Russia's annexations. Now what I'd say Uranium Energy's prospects have improved, but until Congress takes some definitive action to bolster domestic production or ban Russian imports, the talk will remain talk, and have no long-term effect upon uranium demand in the U.S. Given Uranium Energy's near-20-year history of consistent unprofitability, it's going to take more than just talk to get me to invest. The aluminum stocks are a different matter. I actually see a lot of value in Alcoa stock already. It is priced at barely 6 times earnings, with a balance sheet nearly free of net debt and strong free cash flow (and a modest dividend payout to boot). And that's regardless of whether the LME decides to boost Alcoa's prospects even further with a Russian aluminum ban. Century Aluminum, meanwhile, costs a bit more at 8 times earnings, carries a bigger net-debt load (more than $400 million), and pays no dividend. Of the three metals stocks that are rocketing today, my money would be on Alcoa having the strongest legs in this rally. 10 stocks we like better than Alcoa Corporation 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 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 September 30, 2022 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs. 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.
2022-09-30 00:00:00+00:00	AA	How The Parts Add Up: SHE Headed For $97	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 SPDR SSGA Gender Diversity Index ETF (Symbol: SHE), we found that the implied analyst target price for the ETF based upon its underlying holdings is $97.09 per unit. With SHE trading at a recent price near $73.47 per unit, that means that analysts see 32.15% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SHE's underlying holdings with notable upside to their analyst target prices are Alcoa Corporation (Symbol: AA), Aramark (Symbol: ARMK), and Illumina Inc (Symbol: ILMN). Although AA has traded at a recent price of $35.43/share, the average analyst target is 77.19% higher at $62.78/share. Similarly, ARMK has 32.97% upside from the recent share price of $31.36 if the average analyst target price of $41.70/share is reached, and analysts on average are expecting ILMN to reach a target price of $257.46/share, which is 32.84% above the recent price of $193.81. Below is a twelve month price history chart comparing the stock performance of AA, ARMK, and ILMN: 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 SPDR SSGA Gender Diversity Index ETF SHE $73.47 $97.09 32.15% Alcoa Corporation AA $35.43 $62.78 77.19% Aramark ARMK $31.36 $41.70 32.97% Illumina Inc ILMN $193.81 $257.46 32.84% 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.
2022-09-28 00:00:00+00:00	AA	Alcoa (AA) Gains But Lags Market: What You Should Know	Alcoa (AA) closed at $35.23 in the latest trading session, marking a +1.53% move from the prior day. This change lagged the S&P 500's 1.97% gain on the day. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%. Heading into today, shares of the bauxite, alumina and aluminum products company had lost 31.68% over the past month, lagging the Industrial Products sector's loss of 12.08% and the S&P 500's loss of 9.93% in that time. Alcoa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.45, down 78.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.03 billion, down 2.51% from the year-ago period. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $12.86 billion. These totals would mark changes of +4.83% and +5.8%, respectively, from last year. Investors might also notice recent changes to analyst estimates for Alcoa. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.41% lower. Alcoa is currently a Zacks Rank #4 (Sell). In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 4.85. For comparison, its industry has an average Forward P/E of 5.63, which means Alcoa is trading at a discount to the group. It is also worth noting that AA currently has a PEG ratio of 0.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AA's industry had an average PEG ratio of 0.5 as of yesterday's close. The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-27 00:00:00+00:00	AA	Alcoa (AA) Gains As Market Dips: What You Should Know	Alcoa (AA) closed the most recent trading day at $34.70, moving +0.67% from the previous trading session. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.03%. Coming into today, shares of the bauxite, alumina and aluminum products company had lost 37.89% in the past month. In that same time, the Industrial Products sector lost 11.75%, while the S&P 500 lost 9.7%. Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. In that report, analysts expect Alcoa to post earnings of $0.45 per share. This would mark a year-over-year decline of 78.05%. Meanwhile, our latest consensus estimate is calling for revenue of $3.03 billion, down 2.51% from the prior-year quarter. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.16 per share and revenue of $13.01 billion. These totals would mark changes of +4.83% and +7.04%, respectively, from last year. It is also important to note the recent changes to analyst estimates for Alcoa. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.41% lower within the past month. Alcoa is holding a Zacks Rank of #4 (Sell) right now. In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 4.81. This represents a discount compared to its industry's average Forward P/E of 5.55. Also, we should mention that AA has a PEG ratio of 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Metal Products - Distribution was holding an average PEG ratio of 0.49 at yesterday's closing price. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Just Released: Zacks Unveils the Top 5 EV Stocks for 2022 For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity. >>Send me my free report revealing the top 5 EV stocks Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-24 00:00:00+00:00	AA	It's Down 35% But Alcoa Corporation (NYSE:AA) Could Be Riskier Than It Looks	Alcoa Corporation (NYSE:AA) shareholders that were waiting for something to happen have been dealt a blow with a 35% share price drop in the last month. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 27% share price drop. Since its price has dipped substantially, Alcoa may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 6.6x, since almost half of all companies in the United States have P/E ratios greater than 14x and even P/E's higher than 27x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited. Alcoa certainly has been doing a good job lately as it's been growing earnings more than most other companies. One possibility is that the P/E is low because investors think this strong earnings performance might be less impressive moving forward. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price. NYSE:AA Price Based on Past Earnings September 24th 2022 Want the full picture on analyst estimates for the company? Then our free report on Alcoa will help you uncover what's on the horizon. What Are Growth Metrics Telling Us About The Low P/E? Alcoa's P/E ratio would be typical for a company that's expected to deliver very poor growth or even falling earnings, and importantly, perform much worse than the market. If we review the last year of earnings growth, the company posted a terrific increase of 125%. Although, its longer-term performance hasn't been as strong with three-year EPS growth being relatively non-existent overall. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates. Turning to the outlook, the next three years should generate growth of 8.4% per annum as estimated by the ten analysts watching the company. That's shaping up to be similar to the 9.7% per year growth forecast for the broader market. With this information, we find it odd that Alcoa is trading at a P/E lower than the market. It may be that most investors are not convinced the company can achieve future growth expectations. The Final Word Shares in Alcoa have plummeted and its P/E is now low enough to touch the ground. Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company. We've established that Alcoa currently trades on a lower than expected P/E since its forecast growth is in line with the wider market. When we see an average earnings outlook with market-like growth, we assume potential risks are what might be placing pressure on the P/E ratio. At least the risk of a price drop looks to be subdued, but investors seem to think future earnings could see some volatility. And what about other risks? Every company has them, and we've spotted 2 warning signs for Alcoa (of which 1 is potentially serious!) you should know about. If these risks are making you reconsider your opinion on Alcoa, explore our interactive list of high quality stocks to get an idea of what else is out there. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-23 00:00:00+00:00	AA	Alcoa is Oversold	The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Alcoa Corporation (Symbol: AA) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making Alcoa Corporation an even more interesting and timely stock to look at, is the fact that in trading on Friday, shares of AA entered into oversold territory, changing hands as low as $35.13 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 28.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 33.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, AA's recent annualized dividend of 0.4/share (currently paid in quarterly installments) works out to an annual yield of 1.07% based upon the recent $37.52 share price. A bullish investor could look at AA's 28.6 RSI reading today 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. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on AA is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out what 9 other oversold dividend 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.
2022-09-22 00:00:00+00:00	AA	Is Trending Stock Alcoa (AA) a Buy Now?	Alcoa (AA) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this bauxite, alumina and aluminum products company have returned -27.6% over the past month versus the Zacks S&P 500 composite's -10.2% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has lost 16.4% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Alcoa is expected to post earnings of $0.45 per share, indicating a change of -78.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -29.5% over the last 30 days. The consensus earnings estimate of $7.16 for the current fiscal year indicates a year-over-year change of +4.8%. This estimate has changed -1.4% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $6.11 indicates a change of -14.7% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed -4.2%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Alcoa. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.03 billion indicates a year-over-year change of -2.5%. For the current and next fiscal years, $13.01 billion and $13.01 billion estimates indicate +7% and 0% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $2.67 for the same period compares with $1.49 a year ago. Compared to the Zacks Consensus Estimate of $3.49 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +2.69%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term. Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation. >>Show me how I could profit from the metaverse! Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-21 00:00:00+00:00	AA	Noteworthy Wednesday Option Activity: AA, FCX, EVBG	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 28,935 contracts have traded so far, representing approximately 2.9 million underlying shares. That amounts to about 44.9% of AA's average daily trading volume over the past month of 6.4 million shares. Particularly high volume was seen for the $35 strike put option expiring September 23, 2022, with 2,423 contracts trading so far today, representing approximately 242,300 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $35 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) options are showing a volume of 74,864 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 44% of FCX's average daily trading volume over the past month, of 17.0 million shares. Particularly high volume was seen for the $33 strike call option expiring February 17, 2023, with 10,011 contracts trading so far today, representing approximately 1.0 million underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $33 strike highlighted in orange: And Everbridge Inc (Symbol: EVBG) saw options trading volume of 3,256 contracts, representing approximately 325,600 underlying shares or approximately 43.2% of EVBG's average daily trading volume over the past month, of 753,185 shares. Especially high volume was seen for the $35 strike put option expiring November 18, 2022, with 1,011 contracts trading so far today, representing approximately 101,100 underlying shares of EVBG. Below is a chart showing EVBG's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for AA options, FCX options, or EVBG 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.
2022-09-20 00:00:00+00:00	AA	Alcoa Corp Shares Approach 52-Week Low - Market Mover	Alcoa Corp (AA) shares closed today at 0.1% above its 52 week low of $39.37, giving the company a market cap of $7B. The stock is currently down 33.5% year-to-date, down 13.0% over the past 12 months, and down 14.2% over the past five years. This week, the Dow Jones Industrial Average fell 3.0%, and the S&P 500 fell 4.0%. Trading Activity Trading volume this week was 73.3% higher than the 20-day average. Beta, a measure of the stock’s volatility relative to the overall market stands at 1.3. Technical Indicators The Relative Strength Index (RSI) on the stock was under 30, indicating it may be underbought. MACD, a trend-following momentum indicator, indicates a downward trend. The stock closed below its Bollinger band, indicating it may be oversold. Market Comparative Performance The company's share price is the same as the S&P 500 Index , lags it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , lags it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Materials industry sector , lags it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by 58.4% The company's stock price performance over the past 12 months beats the peer average by -37.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is -128.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-16 00:00:00+00:00	AA	Alcoa (AA) Dips More Than Broader Markets: What You Should Know	Alcoa (AA) closed at $42.46 in the latest trading session, marking a -1.58% move from the prior day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%. Coming into today, shares of the bauxite, alumina and aluminum products company had lost 19.87% in the past month. In that same time, the Industrial Products sector lost 8.04%, while the S&P 500 lost 9.06%. Investors will be hoping for strength from Alcoa as it approaches its next earnings release. In that report, analysts expect Alcoa to post earnings of $0.64 per share. This would mark a year-over-year decline of 68.78%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, down 1.71% from the year-ago period. AA's full-year Zacks Consensus Estimates are calling for earnings of $7.26 per share and revenue of $13.03 billion. These results would represent year-over-year changes of +6.3% and +7.24%, respectively. It is also important to note the recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Alcoa is currently sporting a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 5.94 right now. Its industry sports an average Forward P/E of 6.3, so we one might conclude that Alcoa is trading at a discount comparatively. It is also worth noting that AA currently has a PEG ratio of 0.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AA's industry had an average PEG ratio of 0.61 as of yesterday's close. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries. The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-15 00:00:00+00:00	AA	Thursday's ETF Movers: FCG, FXZ	In trading on Thursday, the First Trust Natural Gas ETF (FCG) is outperforming other ETFs, up about 4.4% on the day. Components of that ETF showing particular strength include shares of W&T Offshore (WTI), up about 10.6% and shares of Talos Energy (TALO), up about 9.7% on the day. And underperforming other ETFs today is the First Trust Materials AlphaDEX Fund ETF (FXZ), down about 3.2% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Nucor (NUE), lower by about 11.3%, and shares of Alcoa (AA), lower by about 10.9% on the day. VIDEO: Thursday's ETF Movers: FCG, FXZ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-14 00:00:00+00:00	AA	Here's Why Genuine Parts Is a No-Brainer Dividend Stock	Genuine Parts Company (NYSE: GPC) long ago blew past the Dividend Aristocrats list and now sits high atop the list of Dividend Kings. The Kings are a group of companies that have increased their dividends for an astonishing 50 or more years. Genuine has done it for 66 consecutive years. Here's how, and how it can continue. Image source: Genuine Parts Company. King of the court There have been many ups and downs in the U.S. macro environment over the last 66 years, but Genuine has endured them all. The key to Genuine's success over the decades is its all-weather business model. The company bases its model on the high priority that customers place on their vehicles. Without vehicles, folks can't get to work, pick up groceries, or get kids to soccer practice. They are essential to people's lives, and when they inevitably break down, people need to get them fixed ASAP. This scenario describes the customers of Genuine's Automotive segment, which commands about two-thirds of its revenue. Genuine's top automotive market is the do-it-for-me crowd, those who rely on their mechanics to get their cars and trucks back on the road. About 80% of Genuine's Automotive segment revenue comes from local shops and major auto care chains like Firestone, Goodyear, and AAA Approved Auto Centers. The other 20% comes from do-it-yourself customers who prefer to buy replacement car parts and fix their vehicles themselves. These sales are made through Genuine's network of retail outlets that operate under the Napa brand. Image source: Getty Images. Genuine's Industrial segment generates the other third of the company's revenue and sells parts directly to commercial customers like PepsiCo, Caterpillar, and Alcoa. Keeping delivery fleets up and running is a vital priority for industrial customers. Fleet breakdowns create the risk of missed deliveries or lost business. Whichever category a customer falls into, getting one's car or fleet repaired or maintained is a high priority regardless of macroeconomic conditions. So Genuine can sustainably earn profits and pay shareholders a dividend through the peaks and troughs of the business cycle. Paying a dividend for as long as Genuine has is one thing, but increasing it each year is a different story. The company has grown its profits and dividends by making disciplined acquisitions. Being one of the largest auto parts suppliers in the U.S., Genuine quickly scales its smaller acquisitions into its expansive customer list. By carefully repeating the process for decades, Genuine has demonstrated its durability by growing its profits for 77 of its 94 years and rewarded its shareholders with one of the longest strings of dividend increases on the Dividend Kings list. Can Genuine keep growing its dividend? The auto parts industry is a fragmented one, meaning there are a lot of small players. It would be tempting to gobble up the competition as fast as possible, but favoring growth over efficient use of capital can be value destructive. Instead, Genuine prioritizes discipline in its acquisition strategy. For instance, in January of 2022, Genuine closed its buyout of Kaman Distribution Group for $1.3 billion. That appears to be an attractive valuation considering Genuine expects Kaman to add $1 billion of revenue to its industrial segment. Profit from Kaman and cross-selling opportunities should enable the company to continue its dividend-increase streak in 2023. Continued execution of its proven strategy in a fragmented industry should allow for increases well beyond 2023. Dividend and income investors should seriously consider adding Genuine stock to their portfolios. The company may someday press the powers that be to create a list beyond Dividend Kings. 10 stocks we like better than Genuine Parts Company 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 Genuine Parts Company 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 August 17, 2022 BJ Cook 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.
2022-09-09 00:00:00+00:00	AA	Notable Friday Option Activity: AA, CLF, APPH	Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Alcoa Corporation (Symbol: AA), where a total volume of 24,665 contracts has been traded thus far today, a contract volume which is representative of approximately 2.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.3% of AA's average daily trading volume over the past month, of 5.1 million shares. Especially high volume was seen for the $50 strike put option expiring September 16, 2022, with 1,593 contracts trading so far today, representing approximately 159,300 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $50 strike highlighted in orange: Cleveland-Cliffs Inc (Symbol: CLF) options are showing a volume of 53,502 contracts thus far today. That number of contracts represents approximately 5.4 million underlying shares, working out to a sizeable 48.1% of CLF's average daily trading volume over the past month, of 11.1 million shares. Particularly high volume was seen for the $18 strike call option expiring September 09, 2022, with 4,457 contracts trading so far today, representing approximately 445,700 underlying shares of CLF. Below is a chart showing CLF's trailing twelve month trading history, with the $18 strike highlighted in orange: And AppHarvest Inc (Symbol: APPH) options are showing a volume of 5,091 contracts thus far today. That number of contracts represents approximately 509,100 underlying shares, working out to a sizeable 47.5% of APPH's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $5 strike call option expiring November 18, 2022, with 2,149 contracts trading so far today, representing approximately 214,900 underlying shares of APPH. Below is a chart showing APPH's trailing twelve month trading history, with the $5 strike highlighted in orange: For the various different available expirations for AA options, CLF options, or APPH 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.
2022-09-09 00:00:00+00:00	AA	Is Most-Watched Stock Alcoa (AA) Worth Betting on Now?	Alcoa (AA) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Shares of this bauxite, alumina and aluminum products company have returned -8.3% over the past month versus the Zacks S&P 500 composite's -3.1% change. The Zacks Metal Products - Distribution industry, to which Alcoa belongs, has lost 0.7% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. For the current quarter, Alcoa is expected to post earnings of $0.64 per share, indicating a change of -68.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. For the current fiscal year, the consensus earnings estimate of $7.26 points to a change of +6.3% from the prior year. Over the last 30 days, this estimate has remained unchanged. For the next fiscal year, the consensus earnings estimate of $6.38 indicates a change of -12.1% from what Alcoa is expected to report a year ago. Over the past month, the estimate has remained unchanged. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alcoa is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.06 billion indicates a year-over-year change of -1.7%. For the current and next fiscal years, $13.03 billion and $13.12 billion estimates indicate +7.2% and +0.7% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $2.67 for the same period compares with $1.49 a year ago. Compared to the Zacks Consensus Estimate of $3.49 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +2.69%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-07 00:00:00+00:00	AA	Alcoa (AA) Stock Sinks As Market Gains: What You Should Know	Alcoa (AA) closed at $47.66 in the latest trading session, marking a -0.52% move from the prior day. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%. Coming into today, shares of the bauxite, alumina and aluminum products company had lost 4.9% in the past month. In that same time, the Industrial Products sector lost 4.01%, while the S&P 500 lost 5.51%. Wall Street will be looking for positivity from Alcoa as it approaches its next earnings report date. On that day, Alcoa is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 68.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, down 1.71% from the year-ago period. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.26 per share and revenue of $13.03 billion. These totals would mark changes of +6.3% and +7.24%, respectively, from last year. Investors should also note any recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alcoa is currently a Zacks Rank #3 (Hold). In terms of valuation, Alcoa is currently trading at a Forward P/E ratio of 6.6. For comparison, its industry has an average Forward P/E of 6.76, which means Alcoa is trading at a discount to the group. Meanwhile, AA's PEG ratio is currently 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Metal Products - Distribution industry currently had an average PEG ratio of 0.68 as of yesterday's close. The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow AA in the coming trading sessions, be sure to utilize Zacks.com. Want to Know the #1 Semiconductor Stock for 2022? Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries. This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most. Today, it's yours free with no obligation. >>Give me access to my free special report. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-07 00:00:00+00:00	AA	Global aluminium producers offer Q4 premiums of $115-$133/T -sources	By Yuka Obayashi TOKYO, Sept 7 (Reuters) - Global aluminium producers have offered Japanese buyers premiums of $115-$133 per tonne for October-December primary metal shipments, down 10-22% from the current quarter, three sources directly involved in quarterly pricing talks said on Wednesday. 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 July-September quarter, Japanese buyers agreed to pay a premium of $148 per tonne PREM-ALUM-JP, down 14% from the previous quarter. The latest quarterly pricing negotiations began last week between Japanese buyers and global suppliers, including Rio Tinto Ltd RIO.AX and South32 Ltd S32.AX, and are expected to continue until late this month. The lower premium offers reflected weak demand from automakers amid a global supply chain crunch. Higher local inventories also underline an oversupply situation, a source at a trading company said. "With slumping demand in auto sector and ample stockpiles, buyers will likely seek much lower levels than the offers as spot deals have been done at below $100 a tonne in recent weeks," he said. Aluminium stocks at three major Japanese ports AL-STK-JPPRT were at 364,000 tonnes at the end of July, according to Marubeni Corp 8002.T. The healthy inventory levels for the Japanese ports are somewhere between 270,000 tonnes and 280,000 tonnes, another source at a global producer said. "Still, demand in non-auto sectors remained solid, and once automobiles output start picking up, demand for aluminium may recover pretty quickly," he said. (Reporting by Yuka Obayashi; editing by Jason Neely) ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-06 00:00:00+00:00	AA	Why The 23% Return On Capital At Alcoa (NYSE:AA) Should Have Your Attention	To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Speaking of which, we noticed some great changes in Alcoa's (NYSE:AA) returns on capital, so let's have a look. Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Alcoa is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.23 = US$2.9b ÷ (US$16b - US$3.2b) (Based on the trailing twelve months to June 2022). So, Alcoa has an ROCE of 23%. On its own, that's a very good return and it's on par with the returns earned by companies in a similar industry. NYSE:AA Return on Capital Employed September 6th 2022 In the above chart we have measured Alcoa's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Alcoa here for free. So How Is Alcoa's ROCE Trending? Alcoa has not disappointed with their ROCE growth. The figures show that over the last five years, ROCE has grown 310% whilst employing roughly the same amount of capital. So it's likely that the business is now reaping the full benefits of its past investments, since the capital employed hasn't changed considerably. It's worth looking deeper into this though because while it's great that the business is more efficient, it might also mean that going forward the areas to invest internally for the organic growth are lacking. The Key Takeaway In summary, we're delighted to see that Alcoa has been able to increase efficiencies and earn higher rates of return on the same amount of capital. Considering the stock has delivered 14% to its stockholders over the last five years, it may be fair to think that investors aren't fully aware of the promising trends yet. So exploring more about this stock could uncover a good opportunity, if the valuation and other metrics stack up. If you want to know some of the risks facing Alcoa we've found 2 warning signs (1 makes us a bit uncomfortable!) that you should be aware of before investing here. High returns are a key ingredient to strong performance, so check out our free list ofstocks earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-02 00:00:00+00:00	AA	Dutch aluminium maker Aldel halts more output over high energy prices	Updates with details of other companies making cuts this week due to energy costs AMSTERDAM, Sept 2 (Reuters) - Dutch aluminium maker Aldel on Friday said it was mothballing the remaining capacity at its facility in Farmsum, citing continuing high energy prices and a lack of government support. Aldel joins a growing list of companies cutting or halting European production as gas and electricty prices have soared hundreds of percent this year over 2021 levels. Norway's Yara YAR.OL has cut ammonia production, steelmaker ArcelorMittal MT.LU is switching off one of its furnaces in Bremen, Germany and Belgian Zinc smelter Nyrstar NYR.BR is closing a Netherlands smelting plant. Among aluminium makers, Slovenia's Talum has cut capacity by 80% and Alcoa AA.N is cutting one of three production lines the Lista smelter in Norway. "A controlled pause makes it possible for (Aldel) to be ready to start production again when circumstances improve," Aldel said in a statement. The company had halted primary production in Delfzijl in the Netherlands in October 2021 but continued production of recycled aluminium. Aldel, the Netherlands' only producer of primary aluminium, has capacity to produce 110,000 tonnes of primary aluminium and 50,000 tonnes of recycled aluminium annually. After a bankruptcy and changes of ownership in recent years, the company has around 200 employees. Its full name is Damco Aluminum Delfzijl Cooperatie U.A. (Reporting by Toby Sterling; editing by Jason Neely and Jane Merriman) ((toby.sterling@thomsonreuters.com; +31 20 504 5002;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-09-01 00:00:00+00:00	AA	COLUMN-European smelter closures fracture aluminium pricing: Andy Home	By Andy Home LONDON, Sept 1 (Reuters) - Two more European aluminium smelters are powering down as the region's energy crisis shows no signs of abating. Slovenia's Talum will reduce output to just a fifth of capacity and Alcoa AA.N will curtail one line at its Lista plant in Norway. Close to 1 million tonnes of European primary aluminium capacity is now offline and more may follow as a notoriously power-hungry sector struggles to cope with soaring energy costs. The aluminium market, however, is unimpressed by Europe's mounting production woes, the London Metal Exchange (LME) three-month price CMAL3 sank to a 16-month low of $2,295 per tonne on Thursday morning. A weak global reference price reflects rising Chinese production and growing demand fears for both China and the rest of the world. But European and U.S. buyers will get only partial relief because physical premiums remain historically high as regional disparities rupture the "all-in" price for their metal. POWER SWITCH Aluminium production outside China fell by 1% in the first seven months of this year, according to the International Aluminium Institute (IAI). Rising output in South America and the Gulf region couldn't fully offset the accumulating power hits to smelters in Europe and the United States. Western European production slumped by 11.3% year on year in January to July and annualised run-rates are now consistently below the 3 million tonne-mark for the first time this century. North American output dropped 5.1% over the same timeframe and July's annualised production of 3.6 million tonnes was also the lowest this century. The sharp slide reflects the full shuttering of Century Aluminum's CENX.O Hawesville plant and the partial curtailment of Alcoa's Warrick plant. The scale of the collective smelter hit might be expected to at least support the LME outright price. But losses in Europe and the United States are being more than made up for in China. China's smelters collectively reduced annualised run-rates by more than 2 million tonnes last year with multiple provinces mandating closures to meet tough new energy targets. A rolling winter energy crisis has forced Beijing to backtrack for now on its decarbonisation drive and aluminium producers have been quick to respond. Annualised output surged by 4.2 million tonnes over the first seven months of 2022 and is now running at record highs close to 41 million tonnes. The July closure of up to 1 million tonnes of aluminium capacity in Sichuan province due to drought and power rationing will dent but not halt the surge. GLOBAL DEMAND FEARS Power rationing in Sichuan also hit downstream aluminium manufacturers, adding to concerns about the state of China's demand. Drought, heat waves, structural challenges in the property sector and rolling COVID-19 lockdowns have translated into faltering manufacturing activity in the world's largest aluminium consumer. Official and Caixin purchasing managers indices contracted in August. The mismatch with surging supply is playing out as it always does in the Chinese aluminium market with surplus metal spilling out in the form of semi-manufactured product exports. Exports of so-called semis such as bar, rod, wire and foil hit an all-time monthly high of 619,000 tonnes in July with year-to-date shipments running 29% higher than 2021 levels. The export wave won't directly breach trade barriers erected by the United States or Europe but it will have a displacement effect on primary demand everywhere else. And demand in the rest of the world is now looking decidedly shaky as the impact of high energy prices ripples through the manufacturing chain. European factory activity contracted for the second consecutive month in July under the weight of high energy prices and a broader slump in consumer confidence. You can start to see why the aluminium price is falling. From a global perspective, China's supply surge outweighs European production cuts and its fast-rising semis exports are flowing into a weakening demand landscape. REGIONAL DIVERGENCE Nor do LME time-spreads currently suggest any shortage of accessible metal. Even though exchange inventory is hovering at multi-year lows, the cash premium over three-month metal CMAL0-3 is subdued at $10 per tonne. It reached $75 per tonne in February, when headline stocks were significantly higher. The key question is not whether there is unseen inventory hanging over the market but where exactly it is being stored. Both European and U.S. physical premiums have softened over the summer months but remain super high by historical standards. The CME's U.S. Midwest premium AUPc1, for example, has fallen from $880 per tonne over LME cash in February to a current $581 but that's still higher than the 2015 peak resulting from the controversial load-out queues in the LME's storage network. So too is the current premium for duty-paid metal in Europe EPDc1 at just over $500 per tonne. Both the United States and Europe are natural deficit markets but the gap between local supply and demand is widening this year, meaning higher premiums are needed to attract more units. Physical premiums in Asia, by contrast, are low and still falling, the CME's Japanese premium PJMc1 currently trading at a near one-year low of $90 per tonne over LME. The global premium structure tells you where the surplus is right now, both in terms of accessible primary metal and China's high semis exports. It also highlights the current splintering of the all-in aluminium price between global LME reference point and increasingly divergent regional premiums. It was this sort of disconnect that caused the LME so much grief during the height of its warehouse load-out problems in the first half of the last decade Consumers are better able to cope this time around thanks to tradeable premium contracts on both the CME and LME. Trading activity has been accelerating sharply on both the CME's U.S. Midwest and European duty-paid contracts, the latter notching up a record 10,107 contracts in July. More volumes will surely come as regional energy and aluminium production dynamics diverge from the global LME basis price. The opinions expressed here are those of the author, a columnist for Reuters. China's aluminium production resurgent in 2022https://tmsnrt.rs/3Tz5Zfi Physical aluminium premiums highlight regional price divergencehttps://tmsnrt.rs/3CM8Qvc (Editing by Edmund Blair) ((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.
2022-08-30 00:00:00+00:00	AA	Why Is Alcoa (AA) Stock Down 10% Today?	InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s not a good day for the stock market, for copper and aluminum futures, or for Alcoa (NYSE:AA). Regarding the last item on that list, AA stock is down almost 10% so far on Tuesday. Shares are now down three days in a row and are about 15% off Friday’s high. Energy costs are out of control. While Americans felt that gas prices were far too explosive coming into the summer, most seem to have no idea just how bad the situation in Europe is. Whether it’s energy prices that are sinking small- and medium-sized businesses or shutting down smelters, the problem is ballooning at a rapid and alarming rate. That’s exactly what’s happening with Alcoa right now. Alcoa recently announced it will cut one-third of its production at its plant in Lista, Norway. This is to help with the company’s high energy costs, which pays spot energy prices at its Lista location. Specifically, its Lista site has gone up to more than $600 per megawatt hour. Alcoa isn’t the only company to lower its production primarily due to skyrocketing energy prices. Norsk Hydro (OTCMKTS:NHYDY) plans to close its Slovakia facility by the end of September. Not an Easy Time for AA Stock If Alcoa and Norway sound familiar, it’s likely because the company has had a tough time lately. Alcoa faced a strike at its Mosjoen, Norway, aluminum smelter. Further, after citing “operational challenges,” the company cut production at one of its Indiana plants. As for AA stock, the share price was performing better over the summer. However, the latest stock market correction has not been treating the stock all that well. Just a few days after hitting its 2022 low in July, Alcoa delivered a top- and bottom-line earnings beat. It also announced a $500 million buyback. For a company with a sub-$10 billion market capitalization, that’s no small sum. At one point, AA stock rallied in 11 straight daily sessions earlier this quarter. In all, the stock rallied almost 50% from its July low to the summer high, but it appears all of that good fortune is at risk. Smelting production is coming offline, there are worries about global growth, and energy prices continue to soar. Will that doom Alcoa? It’s too early to say, but clearly there are some roadblocks popping up. On the date of publication, Bret Kenwell 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. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. The post Why Is Alcoa (AA) Stock Down 10% Today? 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.
2022-08-30 00:00:00+00:00	AA	Why Freeport-McMoRan, Steel Dynamics, and Alcoa Plunged Today	What happened Shares of copper miner Freeport-McMoRan (NYSE: FCX), steelmaker Steel Dynamics (NASDAQ: STLD), and aluminum producer Alcoa (NYSE: AA) fell hard on Tuesday, down 6%, 6.3%, and 9.1%, respectively, as of 2:47 p.m. ET. There wasn't any company-specific news that would explain the widespread declines, although Alcoa did issue a press release saying it would shut down part of one of its smelters in Norway due to high energy costs. That could be why it fell more than the others, but when commodity-related stocks such as these fall across the board, the likely culprit is recession fears. That's what the market got today, after another "good news is bad news" data release this morning. So what Freeport mines for copper, gold, and molybdenum, but its largest segment is in copper, which is used all across the economy, from semiconductors to EVs to construction. Steel Dynamics makes a variety of steel products for a diverse range of end markets, from construction to autos, and Alcoa makes aluminum for industrial and construction markets. So each mines a commodity that is sensitive to economic conditions, and today, investors began to fear a recession next year in a bigger way. The pessimism began last Friday, when Jay Powell gave a very hawkish speech at the Fed's meeting in Jackson Hole, and was augmented today by strong economic data. The Federal Reserve is concerned about inflation; while oil and gas prices get a lot of attention on that front, the Fed is actually very focused on the tight labor market. This morning, the Labor Department's July Job Openings and Labor Turnover Survey (JOLTS) data showed 11.2 million job openings, nearly 1 million above economists' forecasts. Meanwhile June's data was revised upwards, from 10.7 million to 11.0 million. Additionally, The Conference Board released its consumer confidence survey for August, showing a reading of 103.2, above economists' forecast for 98. That showed improving consumer confidence after months of declines, likely due to falling gas prices. Aren't robust job opportunities and higher consumer confidence good things, you might ask? Well, not when inflation is running at 8.5% and the Federal Reserve is trying to cool down, not speed up, the economy. Thus, we are in a "good news on the economy is bad news for stocks" era, in which robust economic readings are leading to fears that the Federal Reserve will have to hike rates higher, faster, and perhaps longer. Looking ahead, some fear the Fed will go too far and tip the economy into a recession in order to get inflation under control. If a recession occurs, demand for copper, steel, and aluminum will fall, taking prices down from the very high levels we have seen over the past year of shortages. That's why any company that mines or manufactures economically sensitive materials was down today. Now what Commodity stocks often look cheap, but remember, their earnings power can fluctuate wildly according to economic conditions. If investors think we can have a "soft landing" in which inflation slows without a bad recession, these stocks could very well be buys. Steel Dynamics looks particularly enticing, with a P/E ratio of just 3.6. However, if we have a "hard landing" in which the economy slows markedly, all bets are off, as there is really no telling where copper, steel, or aluminum prices could go in that scenario. 10 stocks we like better than Freeport-McMoRan Inc 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 Freeport-McMoRan Inc 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 August 17, 2022 Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies 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.
2022-08-30 00:00:00+00:00	AA	Alcoa To Curtail One Third Of Its Production Capacity At Lista Smelter	(RTTNews) - Alcoa (AA) said the company will curtail one third of its production capacity at its Lista smelter in Norway to mitigate high energy costs for the site. The curtailment of one potline, or approximately 31,000 metric tons, will begin immediately and is expected to be complete within 14 days. The company said the employees will remain to complete an orderly shutdown of the one potline and to be ready in the event of a restart. The company noted that the site is currently exposed to spot energy pricing, which has increased to above $600 per megawatt hour. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-30 00:00:00+00:00	AA	Implied MTUM Analyst Target Price: $159	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 MSCI USA Momentum Factor ETF (Symbol: MTUM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $159.07 per unit. With MTUM trading at a recent price near $144.17 per unit, that means that analysts see 10.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MTUM's underlying holdings with notable upside to their analyst target prices are Apple Inc (Symbol: AAPL), Alcoa Corporation (Symbol: AA), and Regeneron Pharmaceuticals, Inc. (Symbol: REGN). Although AAPL has traded at a recent price of $161.38/share, the average analyst target is 13.22% higher at $182.72/share. Similarly, AA has 12.79% upside from the recent share price of $55.50 if the average analyst target price of $62.60/share is reached, and analysts on average are expecting REGN to reach a target price of $667.50/share, which is 12.61% above the recent price of $592.77. Below is a twelve month price history chart comparing the stock performance of AAPL, AA, and REGN: Combined, AAPL, AA, and REGN represent 6.46% of the iShares MSCI USA Momentum Factor ETF. 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 MSCI USA Momentum Factor ETF MTUM $144.17 $159.07 10.33% Apple Inc AAPL $161.38 $182.72 13.22% Alcoa Corporation AA $55.50 $62.60 12.79% Regeneron Pharmaceuticals, Inc. REGN $592.77 $667.50 12.61% 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.
2022-08-30 00:00:00+00:00	AA	ANALYSIS-Development banks under pressure to compensate harmed communities	By Emma Rumney, Simon Jessop and Sofia Christensen Aug 30 (Reuters) - Mamadou Lamarana was hoping the World Bank's financial involvement in a western Guinean bauxite mine expansion would lead to compensation for the loss of land and pollution he says his community suffered in the run up to their resettlement in 2020. The 38-year-old electrician and representatives from 12 other villages complained three years ago to World Bank affiliate International Finance Corporation (IFC) that the project developer, state-backed Compagnies des Bauxites de Guinee (CBG), had not made up for damage it had caused since 1973. The villagers say they want their mined land rehabilitated and their communities compensated. They hoped the IFC, which contributed $200 million to finance the mine's expansion, would come through for them. But the IFC and other major development banks, such as the Asian Development Bank and the African Development Bank, have long resisted compensating communities impacted by the projects they finance, even as they acknowledge developers often fall short. A rise in complaints about projects such as those in Guinea have prompted activists to push development banks to contribute to compensation. One activist group, the non-profit Accountability Counsel, points to a 231% rise in complaints between 2009 and 2019 as evidence development banks are backing projects without regard for communities. Just 16.4% of 1,614 complaints filed since 1994 have reached a formal conclusion, it added. An IFC spokesperson said the bank was working closely with CBG to address villagers' concerns and that it was committed to the mediation process. Instead of compensation, the IFC points to its independent complaints process which facilitates talks between project developers and communities, as well as recommends changes to the bank's rulebook for future projects. In the case of the mine in Guinea, the mediation talks were pre-empted. CBG, which is partly owned by Rio Tinto Plc RIO.L and Alcoa Corp AA.N, relocated Lamarana's village on the eve of the scheduled negotiations in 2020. CBG had promised 56 hectares of farmland to Lamarana's community but delivered only 22 hectares, Lamarana said. The new land had been previously mined and was shorn of the topsoil needed to grow food for a living, he added. "They told us our new village would be like a mirror of Africa, because it would be so beautiful. But they did not do that," Lamarana said in an interview. A CBG spokesperson said the company was committed to restoring all of the farmland and was sponsoring livelihood restoration programmes including on poultry production and sustainable agriculture. The spokesperson also said CBG had paid some cash or in-kind compensation for affected land, crops and trees, but declined to give a figure, citing confidentiality requirements. Lamarana said he had received several small payments as the mine gradually encroached on his land, but argues he and the community are entitled to more. He declined to say how much he received in compensation, citing the ongoing negotiations. The IFC spokesperson told Reuters it was considering a new framework that could include financial support or in-kind actions by the IFC for the affected communities "in exceptional circumstances," without specifying what those circumstances would be. STRICTER REQUIREMENTS David Pred, president of Inclusive Development International (IDI), a non-profit helping those harmed by development projects, said the IFC should stagger its loan disbursements and tie them to borrowers meeting its high environmental and social standards. It should also ask for money for compensation to be set aside upfront, he added. "If the IFC did just those two things, the communities in (Guinea) would be in a very different place today in terms of being able to secure redress and it would have likely prevented a lot of the harms that we've seen since the expansion project got underway," Pred said. The IFC does stagger disbursements for some compensation but it is not clear whether they did that for the CBG project. The IFC spokesperson said the bank was considering requiring project developers to take out insurance as one option to cover the cost of potential compensation. However, the spokesperson added if project developers are saddled with too many costs they may be discouraged from working with the IFC in the first place. "If we don't end up with the right balance in this framework, there is a concern we may lose business and have less of an impact," the spokesperson said. (Reporting by Emma Rumney and Simmon Jessop in London and Sofia Christensen in Dakar; Editing by Greg Roumeliotis and Josie Kao) ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.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.
2022-08-25 00:00:00+00:00	AA	AA October 7th Options Begin Trading	Investors in Alcoa Corporation (Symbol: AA) saw new options begin trading today, for the October 7th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AA options chain for the new October 7th contracts and identified one put and one call contract of particular interest. The put contract at the $55.00 strike price has a current bid of $3.95. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $51.05 (before broker commissions). To an investor already interested in purchasing shares of AA, that could represent an attractive alternative to paying $55.46/share today. Because the $55.00 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 99%. 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 7.18% return on the cash commitment, or 60.96% 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 $55.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $58.00 strike price has a current bid of $3.30. If an investor was to purchase shares of AA stock at the current price level of $55.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $58.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 10.53% if the stock gets called away at the October 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 $58.00 strike highlighted in red: Considering the fact that the $58.00 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 5.95% boost of extra return to the investor, or 50.51% 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 $55.46) 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.
2022-08-24 00:00:00+00:00	AA	Norway electrochemical workers strike ends	OSLO, Aug 24 (Reuters) - A strike among Norwegian electrochemical industry workers ended on Wednesday after employers and workers agreed a wage deal, Norway's Federation of Norwegian Industries, which organises the employers, and affected companies said on Wednesday. The strike, which started on Aug. 15, targeted several electrochemical plants, including Boliden's BOL.ST zinc smelter in Odda and Glencore's GLEN.L nickel refinery in Kristiansand as well as aluminium output at Norsk Hydro NHY.OL and Alcoa AA.N. Swedish miner Boliden on Tuesday declared force majeure on zinc deliveries to Europe due to the strike action. Norsk Hydro will resume normal operations at its Hydro Sunndal primary aluminium plant, the firm said in a statement on Wednesday, adding that delays to customers were expected to be "minor." Silicon maker Elkem's ELK.OL Norwegian plants are expected to be back at normal capacity within a few days and the financial impact was expected to be "limited", the company said in a separate statement. (Reporting by Victoria Klesty; Editing by David Gregorio) ((victoria.klesty@thomsonreuters.com; +47 2331 6592; Reuters Messaging: victoria.klesty.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.
2022-08-24 00:00:00+00:00	AA	Wednesday's ETF with Unusual Volume: MDYV	The SPDR S&P 400 Mid Cap Value ETF (MDYV) is seeing unusually high volume in afternoon trading Wednesday, with over 5.9 million shares traded versus three month average volume of about 167,000. Shares of MDYV were down about 0.1% on the day. Components of that ETF with the highest volume on Wednesday were Southwestern Energy (SWN), trading off about 4.1% with over 55.9 million shares changing hands so far this session, and Macy's (M), up about 3.8% on volume of over 29.3 million shares. Alcoa (AA) is the component faring the best Wednesday, up by about 5.6% on the day, while Nuvasive (NUVA) is lagging other components of the SPDR S&P 400 Mid Cap Value ETF, trading lower by about 5.2%. VIDEO: Wednesday's ETF with Unusual Volume: MDYV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-24 00:00:00+00:00	AA	Alcoa Says Labor Strike Ends At Mosjoen Smelter In Norway	(RTTNews) - Alcoa (AA) said that a solution has been reached on a labor dispute and strike has ended at its Mosjoen smelter in Norway. The strike began on Monday, August 22, 2022, and affected numerous industrial plants representing the Norwegian electrochemical industry. Negotiations were between Industri Energi, which represents workers, and Norsk Industri, which is a federation of Norwegian industries that includes Alcoa. Now that the parties have reached a solution, Mosjoen will resume normal operations, including shipping products to customers, Alcoa said. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-23 00:00:00+00:00	AA	Boliden declares force majeure on zinc amid Norway strike	Adds quote, detail COPENHAGEN, Aug 23 (Reuters) - Swedish miner Boliden BOL.ST has declared force majeure on zinc deliveries to Europe due to a strike among Norwegian electrochemical industry workers, although some production is still running, a company spokesperson said on Tuesday. The strike, which started on Monday, is targeting several electrochemical plants, including Boliden's zinc smelter in Odda and Glencore's GLEN.L nickel refinery in Kristiansand as well as aluminium output at Norsk Hydro NHY.OL and Alcoa AA.N. "Zinc production is still running to a certain extent but of course we wish for the situation to return to normal, not least to be able to meet demand from our customers," a Boliden spokesperson said in an emailed statement. "The situation is however out of Boliden's control and difficult to foresee the development of," he added. (Reporting by Stine Jacobsen, editing by Terje Solsvik) ((stine.jacobsen@thomsonreuters.com; +45 21 56 90 10; Reuters Messaging: stine.jacobsen.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.
2022-08-22 00:00:00+00:00	AA	Alcoa (AA) Stock Moves -1.45%: What You Should Know	Alcoa (AA) closed at $50.27 in the latest trading session, marking a -1.45% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.14%. Elsewhere, the Dow lost 1.91%, while the tech-heavy Nasdaq lost 0.27%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had gained 11.38% over the past month. This has outpaced the Industrial Products sector's gain of 11.24% and the S&P 500's gain of 7.62% in that time. Alcoa will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.24, down 88.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.06 billion, down 1.71% from the year-ago period. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.53 per share and revenue of $13.03 billion. These totals would mark changes of -4.39% and +7.24%, respectively, from last year. Any recent changes to analyst estimates for Alcoa should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.21% lower. Alcoa is holding a Zacks Rank of #5 (Strong Sell) right now. Valuation is also important, so investors should note that Alcoa has a Forward P/E ratio of 7.82 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.82. Meanwhile, AA's PEG ratio is currently 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.8 based on yesterday's closing prices. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow AA in the coming trading sessions, be sure to utilize Zacks.com. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-22 00:00:00+00:00	AA	Alcoa Issues Update On Strike At Mosjoen Smelter In Norway	(RTTNews) - Alcoa (AA) said a strike at the company's Mosjoen smelter in Norway began on Monday as a collective agreement between Industri Energi and Norsk Industri was not reached by the agreed-upon deadline. In accordance with Controlled Reduction Agreement, deliveries of products from Alcoa Mosjoen will stop until the end of the strike. If the strike continues, the Mosjoen location will work toward a 20 percent reduction in smelter production by September 19. Alcoa noted that its Lista plant in Norway is not included in the strike action at this time. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-21 00:00:00+00:00	AA	Validea's Top Five Basic Materials Stocks Based On Martin Zweig - 8/21/2022	The following are the top rated Basic Materials stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt. TREX COMPANY INC (TREX) is a mid-cap growth stock in the Forestry & Wood Products industry. The rating according to our strategy based on Martin Zweig is 89% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Trex Company, Inc. is a manufacturer of wood-alternative decking and residential railing and outdoor living products and accessories, marketed under the brand name Trex. The Company is also a provider of custom-engineered commercial railing and staging systems for the commercial and multi-family market, including sports stadiums and performing arts venues. The Company operates in two reportable segments: Trex Residential Products (Trex Residential), and Trex Commercial Products (Trex Commercial). Trex Residential manufactures outdoor living products, consisting of composite decking and railing products, hidden fasteners, and outdoor living accessories. Trex Commercial manufactures and sells its custom, modular and architectural railing and staging systems. The Company offers a range of products, such as Trex Outdoor Furniture, Trex RainEscape, Trex Pergola, Trex Latticeworks, Trex Cornhole Boards, Diablo Trex Blade, Trex SpiralStairs and Structural Steel Posts, and others. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS SALES GROWTH RATE: FAIL CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS EARNINGS PERSISTENCE: PASS LONG-TERM EPS GROWTH: PASS TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of TREX COMPANY INC Full Guru Analysis for TREX> Full Factor Report for TREX> ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL SALES GROWTH RATE: PASS CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: PASS TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of ALCOA CORP Full Guru Analysis for AA> Full Factor Report for AA> INNOSPEC INC. (IOSP) is a mid-cap growth stock in the Chemical Manufacturing industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Innospec Inc. is engaged in developing, manufacturing, blending, marketing and supplying specialty chemicals for use as fuel additives, ingredients for personal care, home care, agrochemical, metal extraction and other applications, and oilfield chemicals. Its segments include Fuel Specialties, Performance Chemicals, and Oilfield Services. The Fuel Specialties segment specializes in manufacturing and supplying fuel additives. It provides various types of fuel ranging from petroleum-based fuels to coal and biofuels. Fuel Specialties products are used in automotive fuels, refineries, marine, renewable fuels, and power plants. The Performance Chemicals segment provides technology-based solutions for its customers processes or products focused in the personal care, home care, agrochemical, metal extractions and construction. The Oilfield Services segment develops and markets chemical solutions for fracturing, stimulation and stimulation operations, and products for oil and gas production. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS SALES GROWTH RATE: FAIL CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: FAIL TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of INNOSPEC INC. Full Guru Analysis for IOSP> Full Factor Report for IOSP> SOCIEDAD QUIMICA Y MINERA DE CHILE (ADR) (SQM) is a large-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Sociedad Quimica y Minera de Chile S.A. (SQM), is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. Specialty plant nutrients are fertilizers that enable farmers to improve yields and the quality of certain crops. Industrial chemicals have a range of applications in chemical processes, such as the manufacturing of glass and industrial nitrates. Iodine and its derivatives are used in the X-ray contrast media and biocides industries, among others. Lithium and its derivatives are used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the Company across the world. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS SALES GROWTH RATE: PASS CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: FAIL TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of SOCIEDAD QUIMICA Y MINERA DE CHILE (ADR) Full Guru Analysis for SQM> Full Factor Report for SQM> WATTS WATER TECHNOLOGIES INC (WTS) is a mid-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Watts Water Technologies, Inc. is a supplier of products, solutions and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets. Its product lines include residential & commercial flow control products, such as backflow preventers, water pressure regulators, temperature and pressure relief valves, and leak detection products; heating, ventilation and air conditioning and gas products, which include water heaters and heating solutions, hydronic and electric heating systems for under-floor radiant applications, custom heat and hot water solutions and hydronic pump groups; drainage & water re-use products, which includes drainage and engineered rainwater harvesting solutions for commercial, industrial, marine and residential applications, and water quality products, such as point-of-use and point-of-entry water filtration and scale prevention systems for commercial, marine and residential applications. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. P/E RATIO: PASS REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL SALES GROWTH RATE: PASS CURRENT QUARTER EARNINGS: PASS QUARTERLY EARNINGS ONE YEAR AGO: PASS POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS EARNINGS PERSISTENCE: FAIL LONG-TERM EPS GROWTH: PASS TOTAL DEBT/EQUITY RATIO: PASS INSIDER TRANSACTIONS: PASS Detailed Analysis of WATTS WATER TECHNOLOGIES INC Full Guru Analysis for WTS> Full Factor Report for WTS> More details on Validea's Martin Zweig strategy About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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.
2022-08-18 00:00:00+00:00	AA	COLUMN-Power is the big new problem for industrial metals supply: Andy Home	By Andy Home LONDON, Aug 18 (Reuters) - Europe's power crunch is taking a rising toll on the region's industrial metals sector, with two more smelters this week announcing plans to halt operations. Nyrstar NYR.BR will place its Budel zinc smelter in the Netherlands on care and maintenance from the start of September until further notice, while Norsk Hydro NHY.OL will fully power down its Slovalco aluminium smelter in Slovakia by the end of the same month. More closures will likely follow. Smelting raw materials into refined metal is an energy-intensive process and Europe's power crisis shows no signs of abating and may indeed get worse heading into winter. It's hot summer weather that's the problem for smelters right now in China though. Drought in Sichuan province has led to power rationing, forcing metals processing plants to curtail output. Lithium operators are included, a warning that the energy transition metals are themselves dependent on existing power availability. Getting sufficient quantities of minerals out of the ground to meet green demand is challenging enough. Getting enough power to process them into refined metal is now fast emerging as a big new problem for supply. POWERING DOWN IN EUROPE Budel is the second zinc plant to close in Europe after Glencore GLEN.L mothballed its Portovesme facility in Italy late last year. Nyrstar referred only to "various external factors" in its decision to shutter Budel but power pricing has to be top of the list. The 315,000-tonne-per-year smelter was already operating at reduced capacity due to soaring power costs, as are both of Nyrstar's still-operating smelters in France and Belgium. Glencore conceded on its results conference call that its zinc smelting business is barely covering its costs and warned that European power prices pose a significant supply risk to the global zinc market. Aluminium smelters are even more dependent on affordable power since alumina is transformed into metal by a process of electrolysis. Slovalco is the fourth European smelter to close over the last 12 months. Alcoa AA.N has taken its San Ciprian smelter in Spain off line for two years while primary smelters in the Netherlands and Montenegro have also come to a halt. Others such as Romania's Alro have part-idled capacity and all are modulating run-rates to avoid peak usage times. Western European annualised aluminium production has fallen below three million tonnes for the first time this century with the rising risk that temporary curtailments could become permanent if there is no respite from the energy storm. The power hit to the region's processing capacity bodes ill for both the European Union's energy transition plans, which will need a lot more metal, and its strategic autonomy drive, which means more of that metal should be mined and refined in Europe. SHUTDOWNS IN SICHUAN China's series of extreme heat waves and drought is simultaneously boosting electricity demand and lowering generation capacity in hydro-powered provinces such as Sichuan. Industrial users across 19 out of 21 cities in the province have been ordered to halt or cut production so power can be prioritised for homes. Aluminium producers such as Henan Zhongfu Industrial 600595.SS are curtailing output with Shanghai Metal Market estimating the cumulative capacity cuts have reached 395,000 tonnes. This is a repeat of last year's drought in neighbouring Yunnan province which also led to multiple smelter curtailments in what is an even bigger aluminium production hub. Sichuan is also a big lithium producer and several local processors are running reduced operations due to power rationing, according to Fastmarkets, which has just lifted its assessment of the local spot carbonate price. Power rationing is now spreading to other provinces and the pressures on the grid will persist until the heat wave, now in its 65th day, finally breaks. LIVING WITH CLIMATE CHANGE Europe's power crisis is a direct consequence of what Russia calls its "special military operation" in Ukraine and the restrictions on west-bound gas supplies. What's happening in China, however, is a warning that European power availability and pricing might never return to some sort of pre-war normal. Global warming poses huge challenges for power generation and grid stability, adding to the problems of decarbonising the whole sector. Ironically, green hydro energy is particularly sensitive to changes in weather patterns as Sichuan is finding out. Temperatures in China have been rising faster than the rest of the world and are expected to continue doing so, according to Yuan Jiashuang, vice-director of China's National Climate Center (NCC). This poses a significant long-term threat for industrial metals markets since China is the world's largest processor of everything from aluminium to zinc. NEW DISRUPTOR The pricing dynamics of metals such as zinc tend to derive from changes in mine output, the costliest part of the production process and the one most prone to unexpected disruption. The existence of sufficient smelting and refining capacity to treat what comes out of the mines has historically been something of a given. Even if the occasional smelter was retired or closed, China always seemed to have spare capacity to compensate. Aluminium is something of an exception. Bauxite is plentiful and cheap to mine, meaning smelter output is the key determinant of supply. But smelter outages have historically been rare and largely down to worker stoppages or acts of God such as lightning strikes. All that is changing. Smelting aluminium or any other industrial metal for that matter is no longer the efficient supply-chain processing channel it used to be. Power is the Achilles heel of all industrial production plants and all metals are to some extent impacted. This new disruptor adds an extra layer of complexity to the metals supply picture. Power rationing tends to be localised by its very nature, dependent on specific dynamics such as those in Europe or weather patterns such as drought in Sichuan. It is manifest in a greater fragmentation of the London Metal Exchange (LME) global reference price and regional physical premiums. The LME aluminium price has shrugged off the Slovalco news, the market collectively calculating that there is no global shortage of aluminium. But there is in Europe, where physical buyers are paying more than $500 per tonne over and above the LME price to get their metal. Such a premium was unprecedented until Europe's power problems began to build last year. Expect more such futures-physical divergence because the metal industry's smelter problems look here to stay. The opinions expressed here are those of the author, a columnist for Reuters. Bad news for zinc smelters as European power crunch shows no signs of abatinghttps://tmsnrt.rs/3BShnw7 European aluminium production melt-downhttps://tmsnrt.rs/3xO1sM2 (Editing by Kirsten Donovan) ((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.
2022-08-16 00:00:00+00:00	AA	Norwegian electrochemical industry workers warn of strike escalation	OSLO, Aug 16 (Reuters) - Norway's electrochemical industry workers are set to escalate an ongoing strike from next Monday, if employers don't restart wage talks, Norway's Industri Energi union said on Tuesday. The union said some 1,115 workers were planning to go on strike, in addition to 1,422 who went on strike this Monday after negotiations with employers broke down last weekend. If the escalation goes ahead as planned some 655 union members plan to stop work at Norsk Hydro's NHY.OL primary aluminium plant in Sundal, and 444 members at Alcoa's AA.N aluminium plant in Mosjoeen. "We are putting increased pressure on employers to start the negotiation process again," Industri Union's leader Frode Alfheim said. The strike, which started on Monday, is initially targeting several electrochemical plants, including Boliden's BOL.ST zinc smelter in Odda and Glencore's GLEN.L nickel refinery in Kristiansand. The union has 7,600 members across the electrochemical industry and represents them in their wage negotiations. (Reporting by Nerijus Adomaitis; editing by David Evans) ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters Messaging: nerijus.adomaitis.thomsonreuters@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.
2022-08-14 00:00:00+00:00	AA	We Think Alcoa (NYSE:AA) Can Stay On Top Of Its Debt	Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that Alcoa Corporation (NYSE:AA) does have debt on its balance sheet. But should shareholders be worried about its use of debt? When Is Debt A Problem? Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together. How Much Debt Does Alcoa Carry? The image below, which you can click on for greater detail, shows that Alcoa had debt of US$1.73b at the end of June 2022, a reduction from US$2.22b over a year. However, because it has a cash reserve of US$1.64b, its net debt is less, at about US$88.0m. NYSE:AA Debt to Equity History August 14th 2022 A Look At Alcoa's Liabilities According to the last reported balance sheet, Alcoa had liabilities of US$3.24b due within 12 months, and liabilities of US$5.18b due beyond 12 months. Offsetting this, it had US$1.64b in cash and US$1.02b in receivables that were due within 12 months. So its liabilities total US$5.76b more than the combination of its cash and short-term receivables. This is a mountain of leverage relative to its market capitalization of US$9.49b. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry. But either way, Alcoa has virtually no net debt, so it's fair to say it does not have a heavy debt load! In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses. Alcoa has very little debt (net of cash), and boasts a debt to EBITDA ratio of 0.025 and EBIT of 20.6 times the interest expense. Indeed relative to its earnings its debt load seems light as a feather. Even more impressive was the fact that Alcoa grew its EBIT by 171% over twelve months. If maintained that growth will make the debt even more manageable in the years ahead. 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 the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Looking at the most recent three years, Alcoa recorded free cash flow of 27% of its EBIT, which is weaker than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness. Our View The good news is that Alcoa's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But truth be told we feel its conversion of EBIT to free cash flow does undermine this impression a bit. Looking at all the aforementioned factors together, it strikes us that Alcoa can handle its debt fairly comfortably. On the plus side, this leverage can boost shareholder returns, but the potential downside is more risk of loss, so it's worth monitoring the balance sheet. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. To that end, you should learn about the 2 warning signs we've spotted with Alcoa (including 1 which makes us a bit uncomfortable) . 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-11 00:00:00+00:00	AA	7 Reddit Stocks to Buy on the Dip	InvestorPlace - Stock Market News, Stock Advice & Trading Tips Investors looking to understand the overall picture around Reddit stocks should consider ApeWisdom. The website tracks trends surrounding popular stocks that are gaining or already have lots of traction on the aggregation and discussion social media platform. So, it’s a great first stop when considering which Reddit stocks to buy on the dip. It really depends on the risk tolerance of the individual who uses Reddit forinvestment advice but these stocks can be a mixed bag. Speculation is rampant on the site. That means risk-tolerant investors can easily find riskier picks on the site. But at the same time, there is plenty of more moderate advice to be found as well. That’s mostly what is included in this list, because predicting the next AMTD Digital (NYSE:HKD) is exceedingly difficult. That said, here are seven Reddit stocks to buy on the dip. TSLA Tesla $874.16 AA Alcoa $54.43 AAPL Apple $169.68 AMD Advanced Micro Devices $100.09 ON ON Semiconductor $66.96 PYPL PayPal $100.39 OXY Occidental Petroleum $65.24 Reddit Stock to Buy on the Dip: Tesla (TSLA) Source: Zigres / Shutterstock.com It’s fairly easy to construct a positive narrative around Tesla (NASDAQ:TSLA) stock whenever it falters. So, although Tesla is down 25% year-to-date (YTD), plenty of bullishness remains. The electric vehicle (EV) pioneer has proven masterful at remaining top-of-mind. Company leadership is doing what it should be given share prices are part science and part art. Elon Musk is always in the spotlight, and that keeps Tesla prices high to a degree. Investors should also remain optimistic about TSLA stock on the news that shareholders are behind a 3-for-1 stock split based on early voting. A split would be the second of its kind in two years if successful. The last split resulted in a tripling in share price, so investors are likely to be behind this one as well. Further, Musk recently stated Tesla will require roughly a dozen factories in order to meet its annual sales goal of 20 million vehicles by 2030. All signs point to serious growth ahead. Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Alcoa (NYSE:AA) is a commodity stock representing a firm that produces bauxite, alumina and aluminum products. It presents an opportunity to buy a company that is growing steadily, yet hasn’t been immune to macrotrends. Company-wide revenues increased per the most recent earnings report. In fact, revenue grew nearly 29% in the second quarter while net income rose by more than 76%, reaching $496 million in the quarter. But the problem is that sequential results may be scaring investors away. Alcoa’s revenues increased from $3.3 billion to $3.6 billion between the first and second quarters this year. However, net income decreased from $577 million to $496 million. Investors are shying away from shares based on that fact. But for buyers who understand sequential results don’t make for an apples-to-apples comparison, the opportunity is obvious. At the end of the day, Alcoa is performing extraordinarily well and has met or exceeded guidance in each of the last four quarters. Reddit Stock to Buy on the Dip: Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com In some sense, Apple (NASDAQ:AAPL) has already beaten the dip. The firm’s July 28 earnings report proved to be better than expected. Apple reported $83 billion in sales and earnings per share, or EPS, of $1.20 while Wall Street had been expecting $82.8 billion and $1.16, respectively. Those strong results were bolstered by iPhone sales that totaled $40.7 billion. It wasn’t all rosy, however, as Mac sales fell short of their $8.7 billion goal, reaching $7.4 billion. Overall, the news was strong, as Apple set a June quarter revenue record. The company returned $28 billion to its shareholders during the quarter as well. Further, Apple generated $23 billion in operating cash flow, which suggests it will have no problem financing its growth objectives, including bringing chip manufacturing in-house for iPhones. There’s a strong case to be made that Apple is the best tech stock available at this time. Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com Advanced Micro Devices (NASDAQ:AMD) stock is primarily known as a semiconductor supplier to the computer industry and data centers. Investors are stumbling to make sense of recent news as the company sees a weakening personal computer market. Despite the fact that AMD derives much of its business from that sector and predicts a slowdown, the company has not slashed its full-year outlook. That is in sharp contrast to rival Intel (NASDAQ:INTC). Investors should understand AMD is doing well despite the broader macro environment. Revenue increased 70% following AMD’s long-awaited acquisition of Xilinx. That acquisition did, however, lead to net income decreasing 37% in the quarter. The bullish narrative is that a reinvigorated AMD, bolstered by Xilinx’s strength in FPGA chips, looks much stronger moving forward and is better able to capture important markets. Reddit Stock to Buy on the Dip: ON Semiconductor (ON) Source: Shutterstock ON Semiconductor (NASDAQ:ON) stock represents a rapidly-growing, profitable chipmaker involved in several important sectors. The company has a strong presence in the automotive sector and is particularly notable for its position in relation to EVs. And while it benefits from secular trends around that burgeoning industry, its current performance should really attract investors. The company just recorded its first-ever quarter with revenues in excess of $2 billion, representing a 25% increase on a year-over-year (YOY) basis. Firm profits increased from $184.1 million to $455.8 million in the same period. The company is currently benefiting from strong auto demand, so ON stock is ideal for investors seeking a stock to capitalize on that trend. It also expects to record revenues exceeding $2 billion in the coming quarter. PayPal (PYPL) Source: Michael Vi / Shutterstock.com There’s lots of good news surrounding PayPal (NASDAQ:PYPL) stock currently. For one, the pioneering fintech firm did better than expected in Q2. Perhaps most importantly, PayPal’s Q2 earnings exceeded analyst expectations. Shares lost massive value in 2022 and the company had to revise guidance downward earlier in the year. Prices tumbled and had the market wondering if PayPal was on a path to irrelevance as the market tightens. The earnings beat eased a lot of that worry. PayPal also revealed a $15 billion share buyback plan which should serve to ease investor worries even more. PYPL stock is unlikely to rebound to the high-$200 price range it tested in late 2021. But there is still plenty of upside from its current $99 price point. There are signs the tech wreck has turned a corner. If that’s true, PayPal is at a great entry point. Reddit Stock to Buy on the Dip: Occidental Petroleum (OXY) Source: Pavel Kapysh / Shutterstock.com Occidental Petroleum (NYSE:OXY) stock saw an uptick in interest through Q2 as Warren Buffett’s firm bought heavily in June and July. That had many investors interested in the oil extraction firm. Buffett was proven correct as Occidental Petroleum topped estimates in the quarter on strong commodity prices. The reason to like OXY stock moving forward is the company maneuvered deftly this quarter. It used those higher-than-anticipated profits to pay down a whopping 19% of outstanding debts. That’s a textbook Buffett play. Additionally, the company repurchased $1.1 billion of its shares in the quarter, proving it rewards shareholders who believe in it. In short, energy stocks will remain volatile, but OXY stock is operating a fundamentally smart business with long-term value in mind. On the date of publication, Alex Sirois 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. The post 7 Reddit Stocks to Buy on the Dip 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.
2022-08-10 00:00:00+00:00	AA	7 A-Rated Stocks to Buy for Safety	InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to the economy and the stock market, the near term remains murky. It’s possible the market has mostly factored in inflation, interest rate hikes and recession risks. Then again, maybe not. Yet while uncertainty still runs high, that doesn’t mean staying on the sidelines is the best move. Instead, it’s best to seize opportunities, like A-rated safe stocks to buy. Of course, risky stocks have been hard hit so far this year, but so have their less-risky counterparts. In fact, in some cases, safe, high-quality names have become oversold. Because those stocks are trading at very favorable valuations, now is a great time to lock down long-term positions. Yes, the market could stay rocky through the rest of the year. Volatility could even carry on into 2023. However, with safe, high-quality stocks, further near-term downside risk is limited. On a longer time frame, each one offers solid upside potential. So, what are the best safe stocks to buy today? Consider these seven. Each one earns an A rating in my Portfolio Grader. AA Alcoa $52.98 DLTR Dollar Tree $165.99 ENPH Enphase Energy $303.87 MRO Marathon Oil $22.30 ON ON Semiconductor $66.16 PEP PepsiCo $176.05 ZIM ZIM Integrated Shipping $52.24 Alcoa (AA) Source: Daniel J. Macy / Shutterstock.com Like other commodity stocks, shares in Alcoa (NYSE:AA) soared earlier this year. Russia’s invasion of Ukraine, and the subsequent economic sanctions placed on Russia, resulted in a big spike in aluminum prices and, in turn, a spike in aluminum stock prices. However, since the spring, aluminum prices have pulled back considerably. That’s when worries about falling demand (from a recession) began to outweigh the impact of tightening supply. Investor sentiment with AA stock has done a 180. After trading for as much as $98.09 per share, it’s fallen nearly 50% to just over $50 per share But while it’s experienced a big plunge, further volatility may be limited. With its drop, Alcoa now trades at a highly discounted valuation (6.1x estimated 2022 earnings). As aluminum prices remain at multiyear highs, the company remains well-positioned to continue reporting strong earnings results. Alcoa earns an A rating in my Portfolio Grader. Dollar Tree (DLTR) Source: shutterstock.com/Jonathan Weiss It’s not surprising that Dollar Tree (NASDAQ:DLTR) shares are in the green for 2022, while the market at large is in the red. This discount retailer is both inflation-resistant and recession-resistant. Inflationary pressures have not had nearly the impact on discount retailers’ operating results as they have had on the results of big-box retailers. Challenging economic conditions have helped to increase traffic to Dollar Tree’s stores, as seen from its same-store sales growth last quarter (4.4%). Continuing to deliver strong earnings growth, the nearly 20% rise in the price of DLTR stock since January is justified. Even with this surge, don’t think you’ve missed out. At 20.3x earnings, it’s still favorably priced relative to its future prospects. Able to pass along rising costs to consumers, all while offering a strong value proposition for consumers squeezed by inflation, its operating results should remain strong going forward. This stock earns an A rating in my Portfolio Grader. Enphase Energy (ENPH) Source: IgorGolovniov / Shutterstock.com Enphase Energy (NASDAQ:ENPH) may seem like an odd choice to include on a list of safe stocks to buy. High-growth names like this maker of solar energy inverters and battery storage products are not typically considered safe stocks. Sure, ENPH stock has made wild moves since late last year. After its most recent rally, it now sports a premium valuation (83.3x earnings). Yet while this may make buying it today look like a speculative wager, shares aren’t as risky as they appear. Why? Trends are highly in Enphase’s favor. It’s experiencing strong demand in Europe, as solar use grows due to high energy prices. The climate bill making its way through Congress right now could also be a boon for its business. As prospects remain very bright, this stock (up 65% this year) could keep climbing. This stock earns an A rating in my Portfolio Grader. Marathon Oil (MRO) Source: Valentin Martynov/Shutterstock.com Green energy plays may have performed strongly lately, but 2022 has been a great year for fossil fuel stocks as well. For instance, Marathon Oil (NYSE:MRO), which is up more than 30% year to date thanks to the massive spike in crude oil and natural gas prices. Yes, with crude oil falling back below $100 per barrel, MRO stock, like its exploration and production peers, has fallen back as well. However, far from a potential falling knife situation, you may want to consider buying shares after their recent dip. Crude oil prices could hold steady at current levels through 2023. At least, that’s what the U.S. Energy Information Administration (or EIA) is forecasting. Assuming oil stays elevated compared to prior-year levels, Marathon earnings will stay elevated as well. This will allow it to continue its aggressive stock buyback program, which could move the needle further for shares. This stock earns an A rating in my Portfolio Grader. ON Semiconductor (ON) Source: Shutterstock ON Semiconductor (NASDAQ:ON) is a safe stock that the market has been overly cautious about. This maker of semiconductors for the auto industry and other industrial end-users has benefited from demand for chips outstripping supply. Last quarter, revenue was up 25% year over year (or YOY). Earnings more than doubled. Still, it’s future results that are top of mind with investors when it comes to ON stock. Anticipating lower demand in a recession, shares trade at a low multiple (12.39 earnings), despite the recent growth. However, it’s hardly a given that demand is on the verge of slacking. Add in the potential benefits from the recently passed CHIPS Act (which provides billions in subsidies for domestic chip makers), and the good times are likely to keep on rolling for ON Semiconductor. This stock earns an A rating in my Portfolio Grader. PepsiCo (PEP) Source: suriyachan / Shutterstock.com It’s not difficult to see why PepsiCo (NASDAQ:PEP) belongs in the safe stocks to buy category. It’s the type of business that performs well in good economic times and in bad economic times. The beverage and snack foods giant also has been able to pass along rising costs to consumers, all while continuing to report organic sales growth. In this year’s down market, PEP stock has held steady. At present, it trades for basically what it traded for at the start of 2022. Once today’s choppy market conditions pass, PepsiCo will likely get back on track delivering solid returns to investors. Shares will continue to move up in tandem with increased earnings. Add in the stock’s dividend (forward yield of 2.64%), which has been raised 49 years in a row, and buy and hold investors could see satisfactory total returns from adding it to their portfolios. This stock earns an A rating in my Portfolio Grader. ZIM Integrated Shipping Services (ZIM) Source: Darryl Brooks / Shutterstock.com With high expectations of an upcoming recession, cyclical stocks have fallen to super-low valuations. Few, however, have fallen to the fire-sale valuation ZIM Integrated Shipping Services (NYSE:ZIM) currently commands. Currently, it trades for just 1.1x estimated 2022 earnings. Even when comparing its stock price to 2023 earnings forecasts, which call for its earnings to fall by more than 64%, its earnings multiple is extremely low (3.3x). It’s not as if things are set to go from boom to bust for this containership company, which has benefited greatly from the supply chain crisis. Container shipping rates are declining, but they are not experiencing a precipitous plunge. Earnings could remain very high compared to pre-2021 levels. Put simply, pardon the pun when I say the ship hasn’t sailed with ZIM stock. This stock earns an A rating in my Portfolio Grader. On the date of publication, Louis Navellier had a long position in AA, ENPH, MRO, ON, PEP and ZIM. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. 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 A-Rated Stocks to Buy for Safety 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.
2022-08-08 00:00:00+00:00	AA	Alcoa Announces Pension Annuity Transaction; To Record Non-cash Settlement Charge In Q3	(RTTNews) - Alcoa Corporation (AA) announced the purchase of group annuity contracts that will facilitate the transfer of approximately $1 billion of pension obligations and assets associated with defined benefit pension plans for certain United States retirees and beneficiaries. The group annuity contracts will be executed by two subsidiaries of Athene Holding Ltd. Athene will assume payments for approximately 4,400 participants in the U.S. pension plans. In the third quarter, Alcoa expects to record a non-cash settlement charge of approximately $635 million or $3.41 per share, related to the annuity transaction. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-04 00:00:00+00:00	AA	Ex-Dividend Reminder: Carlyle Group, Navios Maritime Partners and Alcoa	Looking at the universe of stocks we cover at Dividend Channel, on 8/8/22, Carlyle Group Inc (Symbol: CG), Navios Maritime Partners LP (Symbol: NMM), and Alcoa Corporation (Symbol: AA) will all trade ex-dividend for their respective upcoming dividends. Carlyle Group Inc will pay its quarterly dividend of $0.325 on 8/16/22, Navios Maritime Partners LP will pay its quarterly dividend of $0.05 on 8/12/22, and Alcoa Corporation will pay its quarterly dividend of $0.10 on 8/25/22. As a percentage of CG's recent stock price of $38.31, this dividend works out to approximately 0.85%, so look for shares of Carlyle Group Inc to trade 0.85% lower — all else being equal — when CG shares open for trading on 8/8/22. Similarly, investors should look for NMM to open 0.17% lower in price and for AA to open 0.21% lower, all else being equal. Below are dividend history charts for CG, NMM, and AA, showing historical dividends prior to the most recent ones declared. Carlyle Group Inc (Symbol: CG): Navios Maritime Partners LP (Symbol: NMM): Alcoa Corporation (Symbol: AA): In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 3.39% for Carlyle Group Inc, 0.67% for Navios Maritime Partners LP, and 0.83% for Alcoa Corporation. In Thursday trading, Carlyle Group Inc shares are currently off about 1.2%, Navios Maritime Partners LP shares are off about 0.2%, and Alcoa Corporation shares are off about 0.8% on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-08-03 00:00:00+00:00	AA	Is This Steel Company Making a Big Aluminum Mistake?	Steel is an important input into the U.S. economy, and Steel Dynamics (NASDAQ: STLD) has been riding the current demand spike to post record results. The stock has responded accordingly, up over 300% since its 2020 pandemic-driven bear-market lows. And now, after so much success in the steel space, it is doing something that is entirely out of character. Should investors be worried? A sound foundation One of the interesting things about Steel Dynamics is that it was cofounded by its CEO Mark Millett. Millett previously worked for domestic steel giant Nucor. Nucor has a long and impressive history behind it, noting that it has increased its dividend annually for nearly 50 consecutive years despite the fact that steel production is a highly cyclical industry. That's a testament to the way Nucor operates. Image source: Getty Images. Given this, it shouldn't come as too much of a surprise that Steel Dynamics, founded by a Nucor alum, has long followed a similar playbook. That includes a focus on electric arc mini-mills, which tend to be more flexible than older blast furnace technology. The two steel names also have vertically integrated business models, with operations from scrap collection (a key steel input) through steel production and ending with steel fabrication. That last factor is important because it allows Nucor and Steel Dynamics to take the commodity steel they produce and turn it into higher-margin products. Steel Dynamics has also made a point of continuing to invest in its business over time, just like Nucor. That has allowed it to grow materially since its founding in 1993. In fact, the company is in the process of ramping up a new mill right now. But, despite the strong results of the company's historical approach, something material has changed. A new direction On July 19, Steel Dynamics announced that it was investing $2.2 billion in a new mill. Only this won't be a steel mill, it will be an aluminum production facility. Although there are similarities between this new venture and its core steel business, Steel Dynamics is clearly shifting away from its core approach. Backing the move is Steel Dynamic's expectation of an aluminum supply deficit of 2 million tonnes. According to management, that deficit is currently being met by imports that amounted to around 25% of North American consumption in 2021. It believes it can undercut that foreign aluminum and, thus, build share in the space. With supply chain security an increasingly important issue, there's no reason to doubt that Steel Dynamics will find willing customers. On the surface, this sounds like a strong plan. And yet, aluminum and steel aren't the same. Steel Dynamics will now have to navigate two separate industries with their own dynamics and cyclical tendencies. That's a big shift in approach that could add valuable diversification to its business, or if things don't go as the company hopes, it could result in the steel operations being dragged down by a smaller division that is distracting management. It's worth noting that, not too long ago, aluminum giant Alcoa built up an aluminum fabricating business to go with its commodity aluminum production operations. That division was eventually broken out as a stand-alone company, and very quickly it started to struggle. Shares of the breakout company, Arconic, have underperformed Alcoa of late. That's not to suggest that Steel Dynamics can't find success in the aluminum space but to highlight that aluminum is just as tough a market as steel. Thus, this diversification effort isn't likely to be a slam dunk -- even for a well-run steel mill like Steel Dynamics. Watch closely Long-term investors in Steel Dynamics probably shouldn't jump ship and run -- at least not yet, anyway. (Nucor would be a strong alternative, however, if you do.) Management has proven very capable so far and has earned the benefit of the doubt. But, given the material change in direction here, investors should be paying very close attention to the progress of the new aluminum investment. If the company starts to struggle, it could easily turn into a very costly diversion. 10 stocks we like better than Steel Dynamics 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 Steel Dynamics 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 July 27, 2022 Reuben Gregg Brewer has positions in Nucor. 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.
2022-07-28 00:00:00+00:00	AA	USEQ's Holdings Could Mean 19% Gain Potential	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 Invesco Russell 1000 Enhanced Equal Weight ETF (Symbol: USEQ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $39.69 per unit. With USEQ trading at a recent price near $33.23 per unit, that means that analysts see 19.47% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USEQ's underlying holdings with notable upside to their analyst target prices are ICU Medical Inc (Symbol: ICUI), Alcoa Corporation (Symbol: AA), and Element Solutions Inc (Symbol: ESI). Although ICUI has traded at a recent price of $177.69/share, the average analyst target is 40.69% higher at $250.00/share. Similarly, AA has 31.94% upside from the recent share price of $47.75 if the average analyst target price of $63.00/share is reached, and analysts on average are expecting ESI to reach a target price of $25.00/share, which is 27.36% above the recent price of $19.63. Below is a twelve month price history chart comparing the stock performance of ICUI, AA, and ESI: 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 Invesco Russell 1000 Enhanced Equal Weight ETF USEQ $33.23 $39.69 19.47% ICU Medical Inc ICUI $177.69 $250.00 40.69% Alcoa Corporation AA $47.75 $63.00 31.94% Element Solutions Inc ESI $19.63 $25.00 27.36% 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.
2022-07-25 00:00:00+00:00	AA	Is Most-Watched Stock Alcoa (AA) Worth Betting on Now?	Alcoa (AA) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this bauxite, alumina and aluminum products company have returned -7.2%, compared to the Zacks S&P 500 composite's +5.6% change. During this period, the Zacks Metal Products - Distribution industry, which Alcoa falls in, has gained 3.4%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Alcoa is expected to post earnings of $0.64 per share, indicating a change of -68.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -80.1% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $7.27 points to a change of +6.4% from the prior year. Over the last 30 days, this estimate has changed -37.4%. For the next fiscal year, the consensus earnings estimate of $6.98 indicates a change of -4% from what Alcoa is expected to report a year ago. Over the past month, the estimate has changed -41%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Alcoa is rated Zacks Rank #5 (Strong Sell). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Alcoa, the consensus sales estimate for the current quarter of $3.17 billion indicates a year-over-year change of +1.8%. For the current and next fiscal years, $13.27 billion and $13.11 billion estimates indicate +9.2% and -1.2% changes, respectively. Last Reported Results and Surprise History Alcoa reported revenues of $3.64 billion in the last reported quarter, representing a year-over-year change of +28.6%. EPS of $2.67 for the same period compares with $1.49 a year ago. Compared to the Zacks Consensus Estimate of $3.49 billion, the reported revenues represent a surprise of +4.33%. The EPS surprise was +2.69%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Valuation No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Alcoa is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Alcoa. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-24 00:00:00+00:00	AA	COLUMN-Aluminium producers feel the margin pain as price slumps: Andy Home	By Andy Home LONDON, July 22 (Reuters) - Aluminium producers are facing a hard landing after the bonanza pricing seen in the first half of 2022. U.S. producer Alcoa AA.N reported an average realised price on third-party sales of $3,864 per tonne in the second quarter, compared with $2,753 in the same period of last year. Shareholders will reap the benefits of the revenue boost with a $500 million share buy-back. Time, however, has already been called on the aluminium party. The London Metal Exchange (LME) three-month aluminium price CMAL3 has collapsed from an all-time high of $4,073.50 per tonne in March to a current $2,450.00. Fear of recession is now the dominant theme in industrial metals as surging energy prices translate into manufacturing slowdown. High power pricing spells particular trouble for aluminium operators, given the energy-intensive nature of the smelting process. The resulting margin squeeze is already taking an increasing toll on production. EUROPEAN MELTDOWN Hardest hit so far have been European smelters. Western European production of primary aluminium fell by 11.5% to 1.483 million tonnes in the first half of the year, according to the International Aluminium Institute (IAI). Annualised production has fallen below the 3.0 million level for the first time this century. European smelters find themselves in the eye of the energy storm that has broken since Russia launched what it calls its "special military operation" in Ukraine. Alcoa has suspended its 228,000-tonne per year Spanish plant and others are flexing run-rates as they navigate super-high power prices. Montenegro's smaller Podgorica smelter has also been shuttered with other Eastern European operators such as Romania's Alro Group ALR.BX and Slovakia's Slovalco idling capacity. It's worth noting that production in the IAI's Eastern European category, which includes all these countries, was down by just 1.4% in the first half of the year. The intriguing inference is that Russia's Rusal may be raising production. Its products have not been sanctioned, although Australia's ban on exports of alumina to the country has disrupted its raw material supply chain. Rusal has not released production figures for this year. ALUMINA HITS European smelter pain is now extending further upstream to alumina refining. Romania's Alro Group, which has idled 132,500 tonnes of primary aluminium capacity, is now closing its alumina plant also due to soaring power costs. Alcoa is reducing output at its San Ciprian refinery in Spain for the same reason. Natural gas costs have risen from around $45 per tonne of alumina produced in early 2021 to more than $215 in the second quarter of 2022, the company said. The plant, which has an annual capacity of 1.5 million tonnes of the intermediate product, has reduced output by 15%. There is no sign of any imminent relief from the power crunch. The entire forward power price structure in Germany, to take just one example, has moved exponentially higher with spot pricing, posing a structural problem for any smelter without a captive power source. U.S. SMELTER POWERS DOWN The margin squeeze has spread to the United States. Century Aluminium CENX.O is idling its Hawesville smelter for "approximately nine to twelve months" after the power cost to operate the plant "more than tripled the historical average in a very short period". Century boasts that its Kentucky facility is the largest North American producer of military-grade aluminium. Hawesville's special status played an important role in the Trump Administration's use of Section 232 national security provisions to impose import duties on primary aluminium in 2018. Tariff protection has not been sufficient to withstand the impact of the energy hit. Alcoa is also idling one of three lines at its Warrick smelter in Indiana, citing "operational challenges, which stem from workforce shortages in the region". Offsetting the impact on regional supply will be the full phased return of Canada's Kitimat smelter after a protracted strike last year. But North American aluminium production, down by 4.6% so far this year, is likely to do no more than stabilise around current low levels. CHINA STILL POWERING UP China's aluminium production is currently rebounding as smelters recover from last year's aggressive energy efficiency targets, now modified after the resulting rolling power crunch. The country's annualised run-rate has accelerated by almost four million tonnes to 40.6 million tonnes so far this year. Here too, though, the margin pressure is on. The recent precipitous price collapse means that around half of China's capacity is now operating at a cash cost below the current metal price, according to AZ Global Consulting. But don't expect immediate curtailments. China's smelters have a long history of toughing out periods of low prices with some cushioned by their relationship with regional governments. A more likely reaction is a slowdown of new capacity coming on line. There are signs, according to AZ Global, that investors are already growing cautious with projects slated to start this year pushed back until 2023. POWER PINCH Availability of cheap power has always shaped the aluminium smelting landscape, but that reliance on continuous electricity to process alumina into metal is now becoming ever more acute. It's not just the massive short-term impact of Russia's invasion of Ukraine on all fossil-fuel markets. It's also about the bigger global drive towards renewable energy, which requires massive changes in grid structure and efficiency, as Chinese smelters found out to their cost in 2021. The longer-term headache of securing low-priced power in a structurally-challenged energy market isn't going away. But right now the energy crisis spreading out of Europe is already acting as a major brake on global aluminium production. Despite China's collective ramp-up, global primary metal output was still 0.1% lower year-on-year in the first six months of 2022. The opinions expressed here are those of the author, a columnist for Reuters. European power crunch spells big trouble for regional aluminium smeltershttps://tmsnrt.rs/3yZOTO7 European aluminium smelters have been hardest hit by margin squeezehttps://tmsnrt.rs/3yWQ6py (Editing by Kirsten Donovan) ((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.
2022-07-24 00:00:00+00:00	AA	Validea's Top Five Basic Materials Stocks Based On Motley Fool - 7/24/2022	The following are the top rated Basic Materials stocks according to Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance. TIMKENSTEEL CORP (TMST) is a small-cap value stock in the Iron & Steel industry. The rating according to our strategy based on Motley Fool is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: TimkenSteel Corporation manufactures alloy steel, as well as carbon and micro-alloy steel. The Company's portfolio includes special bar quality (SBQ) bars, seamless mechanical tubing (tubes), manufactured components, such as precision steel components, and billets. In addition, it supplies machining and thermal treatment services, and it manages raw material recycling programs, which are also used as a feeder system for its melting operations. The Company's products and services are used in a various range of demanding applications in the various market sectors, including automotive, oil and gas, industrial equipment, mining, construction, rail, defense, heavy truck, agriculture, power generation, and oil country tubular goods (OCTG). Its production of manufactured components takes place at two downstream manufacturing facilities: Tryon Peak (Columbus, North Carolina) and St. Clair (Eaton, Ohio). The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of TIMKENSTEEL CORP Full Guru Analysis for TMST> Full Factor Report for TMST> ENCORE WIRE CORPORATION (WIRE) is a mid-cap value stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Motley Fool is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Encore Wire Corporation is a manufacturer of electrical building wire and cable. The Company is a supplier of building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, manufactured housing, and data centers. The Company offers an electrical building wire product line that consists primarily of NM-B cable, UF-B cable, THHN/THWN-2, XHHW-2, USE-2, RHH/RHW-2 and other types of wire products, including service entrance unarmored (SEU), service entrance cable (SER), Photovoltaic, underground residential distribution wire (URD), tray cable, metal-clad and armored cable. The Company serves various markets, such as healthcare, data center, airport expansion, military bases, oil and gas, transit, wastewater treatment, school construction, and power generation. The Company markets its products throughout the United States primarily through independent manufacturers, representatives, and through its own direct in-house marketing. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of ENCORE WIRE CORPORATION Full Guru Analysis for WIRE> Full Factor Report for WIRE> ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Motley Fool is 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: FAIL "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of ALCOA CORP Full Guru Analysis for AA> Full Factor Report for AA> MERCER INTERNATIONAL INC. (MERC) is a small-cap value stock in the Paper & Paper Products industry. The rating according to our strategy based on Motley Fool is 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Mercer International Inc. is a global forest products company. The Company operates through two segments: Pulp and Wood Products. Its Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and other byproducts at its pulp mills. Its pulp mills include Rosenthal mill, Stendal mill, Celgar mill, and Peace River mill. Its Wood Products segment consists of the manufacture, sale and distribution of lumber, electricity and other wood residuals at the Friesau mill. It owns and operates four pulp manufacturing facilities, two in Canada and two in Germany, has a 50% joint venture interest in a northern bleached softwood kraft (NBSK) pulp mill in Canada and owns and operates one sawmill in Germany. The Company operates two NBSK mills in Eastern Germany and one NBSK mill and a swing kraft mill in Western Canada, which produces both NBSK and northern bleached hardwood kraft (NBHK). It also produces and sell tall oil, a by-product of its production process. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: FAIL R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: FAIL "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of MERCER INTERNATIONAL INC. Full Guru Analysis for MERC> Full Factor Report for MERC> INTREPID POTASH INC (IPI) is a small-cap value stock in the Non-Metallic Mining industry. The rating according to our strategy based on Motley Fool is 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Intrepid Potash, Inc. is a diversified mineral company. The Company delivers potassium, magnesium, sulfur, salt, and water products to agriculture, animal feed and the oil and gas industry. The Company's segments include potash, Trio, and oilfield solutions. It sells potash into three primary markets: the agricultural market as a fertilizer input, the industrial market as a component in drilling and fracturing fluids for oil and gas wells and an input to other industrial processes, and the animal feed market as a nutrient supplement. Trio is its specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle. It produces Trio in premium, granular, standard, and fine standard sizes. It also offers potassium chloride (KCl) real-time mixing services on location for hydraulic fracturing operations and trucking services. The Company also sells salt, magnesium chloride, metal recovery salts, brines, and water that are derived as part of its mining processes. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: PASS CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: FAIL R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: FAIL INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: PASS DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of INTREPID POTASH INC Full Guru Analysis for IPI> Full Factor Report for IPI> More details on Validea's Motley Fool strategy About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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.
2022-07-22 00:00:00+00:00	AA	Validea Motley Fool Strategy Daily Upgrade Report - 7/22/2022	The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance. CAVCO INDUSTRIES, INC. (CVCO) is a mid-cap value stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Motley Fool changed from 59% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Cavco Industries, Inc. designs and produces factory-built homes. Its segments include Factory-built Housing and Financial Services. The Factory-built Housing segment includes wholesale and retail factory-built housing operations. The Financial Services segment includes manufactured housing consumer finance and insurance. Its factory-built homes are primarily distributed through a network of independent and Company-owned retailers, planned community operators and residential developers. Its manufactured homes are marketed under a variety of brand names, including Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot, Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood and MidCountry. It is also a producer of park model recreational vehicle (RVs), vacation cabins and factory-built commercial structures, as well as modular homes. CountryPlace Acceptance Corp. is its finance subsidiary and Standard Casualty Co. (Standard Casualty) is its insurance subsidiary. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: FAIL INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of CAVCO INDUSTRIES, INC. Full Guru Analysis for CVCO Full Factor Report for CVCO ALCOA CORP (AA) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Motley Fool changed from 65% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Alcoa Corporation is a trading company. The Company is engaged in the production of bauxite, alumina and aluminum products. The Company's operations consist of three reportable business segments: Bauxite, Alumina, and Aluminum. The Bauxite and Alumina segments primarily consist of a series of affiliated operating entities held in Alcoa World Alumina and Chemicals (AWAC), which is a joint venture between Alcoa Corporation and Alumina Limited. The Aluminum segment consists of the Company's aluminum smelting, casting, and rolling businesses, along with the energy production business. Its Bauxite segment consists of the Company's global bauxite mining operations. The Company's Alumina segment consists of the Company's worldwide refining system, which processes bauxite into alumina. The Aluminum segment consists of its worldwide smelting and cast house system, a portfolio of energy assets in Brazil, Canada, and the United States. It has over 28 operating locations across nine countries. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: FAIL "THE FOOL RATIO" (P/E TO GROWTH): PASS AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of ALCOA CORP Full Guru Analysis for AA Full Factor Report for AA SKYLINE CHAMPION CORP (SKY) is a mid-cap value stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Motley Fool changed from 59% to 72% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Skyline Champion Corporation is a factory-built housing company. The Company offers manufactured and modular homes, park model recreational vehicle standard (RVs), accessory dwelling units (ADUs) and modular buildings for the multi-family and hospitality sectors. It manufactures homes under various brands, such as Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company also operates a factory-direct retail business, Titan Factory Direct, which offers a selection of manufactured and modular homes as well as park model RVs with 18 sales centers spanning the southern United States. Its Star Fleet Trucking business provides transportation services to the manufactured housing and other industries. It operates through approximately 41 manufacturing facilities across the United States and western Canada. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: FAIL DAILY DOLLAR VOLUME: FAIL PRICE: PASS INCOME TAX PERCENTAGE: PASS Detailed Analysis of SKYLINE CHAMPION CORP Full Guru Analysis for SKY Full Factor Report for SKY AEHR TEST SYSTEMS (AEHR) is a small-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Aehr Test Systems is engaged in the designing, engineering and manufacturing of test and burn-in equipment used in the semiconductor industry. The Company manufactures and markets full wafer contact test systems, test during burn-in systems, test fixtures and related accessories. The Company's principal products are the Advanced Burn-In and Test System (ABTS), the FOX full wafer contact parallel test and burn-in systems, the MAX burn-in system, the WaferPak full wafer contactor, the DiePak carrier and test fixtures. It develops, manufactures and sell systems, which are designed to perform reliability screening and stress testing, burn-in or cycling, of homogeneous and heterogenous logic and memory integrated circuits (ICs) sensors and optical devices. These systems can be used to simultaneously perform parallel testing and burn-in of packaged ICs, singulated bare die or ICs still in wafer form. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: FAIL PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: PASS CASH AND CASH EQUIVALENTS: PASS INVENTORY TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: PASS DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of AEHR TEST SYSTEMS Full Guru Analysis for AEHR Full Factor Report for AEHR LAKELAND FINANCIAL CORPORATION (LKFN) is a small-cap growth stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest. Company Description: Lakeland Financial Corporation is a bank holding company, which provides, through its subsidiary Lake City Bank (the Bank), a range of financial products and services throughout its Northern and Central Indiana markets. The Company offers commercial and consumer banking services, as well as trust and wealth management, brokerage and treasury management commercial services. The Company serves a diverse customer base, including commercial customers across a variety of industries including, among others, commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services and healthcare. The Bank has approximately 51 offices in 15 counties, including 45 offices in northern Indiana and six offices in central Indiana, in the Indianapolis market. The Bank's deposits are insured by the Federal Deposit Insurance Corporation (the FDIC) to the maximum extent provided under federal law and FDIC regulations. The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria. PROFIT MARGIN: PASS RELATIVE STRENGTH: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL INSIDER HOLDINGS: FAIL CASH FLOW FROM OPERATIONS: PASS PROFIT MARGIN CONSISTENCY: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL CASH AND CASH EQUIVALENTS: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS SALES: PASS DAILY DOLLAR VOLUME: PASS PRICE: PASS INCOME TAX PERCENTAGE: FAIL Detailed Analysis of LAKELAND FINANCIAL CORPORATION Full Guru Analysis for LKFN Full Factor Report for LKFN More details on Validea's Motley Fool strategy About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services. About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, 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.
2022-07-22 00:00:00+00:00	AA	Selling US$10m worth of stock earlier this year was a lucrative decision for Alcoa Corporation (NYSE:AA) insiders	Last week, Alcoa Corporation's (NYSE:AA) stock jumped 11%, but insiders who sold US$10m worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$56.14, which is higher than the current price, may have been the best decision. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether. The Last 12 Months Of Insider Transactions At Alcoa In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, William Oplinger, sold US$4.5m worth of shares at a price of US$48.40 per share. So what is clear is that an insider saw fit to sell at around the current price of US$45.15. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Insiders in Alcoa didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! NYSE:AA Insider Trading Volume July 22nd 2022 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them). Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Alcoa insiders own 0.5% of the company, worth about US$38m. 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? It doesn't really mean much that no insider has traded Alcoa shares in the last quarter. We don't take much encouragement from the transactions by Alcoa insiders. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Alcoa is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us... If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-22 00:00:00+00:00	AA	COLUMN-Aluminium producers feel the margin pain as price slumps: Andy Home	By Andy Home LONDON, July 22 (Reuters) - Aluminium producers are facing a hard landing after the bonanza pricing seen in the first half of 2022. U.S. producer Alcoa AA.N reported an average realised price on third-party sales of $3,864 per tonne in the second quarter, compared with $2,753 in the same period of last year. Shareholders will reap the benefits of the revenue boost with a $500 million share buy-back. Time, however, has already been called on the aluminium party. The London Metal Exchange (LME) three-month aluminium price CMAL3 has collapsed from an all-time high of $4,073.50 per tonne in March to a current $2,450.00. Fear of recession is now the dominant theme in industrial metals as surging energy prices translate into manufacturing slowdown. High power pricing spells particular trouble for aluminium operators, given the energy-intensive nature of the smelting process. The resulting margin squeeze is already taking an increasing toll on production. EUROPEAN MELTDOWN Hardest hit so far have been European smelters. Western European production of primary aluminium fell by 11.5% to 1.483 million tonnes in the first half of the year, according to the International Aluminium Institute (IAI). Annualised production has fallen below the 3.0 million level for the first time this century. European smelters find themselves in the eye of the energy storm that has broken since Russia launched what it calls its "special military operation" in Ukraine. Alcoa has suspended its 228,000-tonne per year Spanish plant and others are flexing run-rates as they navigate super-high power prices. Montenegro's smaller Podgorica smelter has also been shuttered with other Eastern European operators such as Romania's Alro Group ALR.BX and Slovakia's Slovalco idling capacity. It's worth noting that production in the IAI's Eastern European category, which includes all these countries, was down by just 1.4% in the first half of the year. The intriguing inference is that Russia's Rusal may be raising production. Its products have not been sanctioned, although Australia's ban on exports of alumina to the country has disrupted its raw material supply chain. Rusal has not released production figures for this year. ALUMINA HITS European smelter pain is now extending further upstream to alumina refining. Romania's Alro Group, which has idled 132,500 tonnes of primary aluminium capacity, is now closing its alumina plant also due to soaring power costs. Alcoa is reducing output at its San Ciprian refinery in Spain for the same reason. Natural gas costs have risen from around $45 per tonne of alumina produced in early 2021 to more than $215 in the second quarter of 2022, the company said. The plant, which has an annual capacity of 1.5 million tonnes of the intermediate product, has reduced output by 15%. There is no sign of any imminent relief from the power crunch. The entire forward power price structure in Germany, to take just one example, has moved exponentially higher with spot pricing, posing a structural problem for any smelter without a captive power source. U.S. SMELTER POWERS DOWN The margin squeeze has spread to the United States. Century Aluminium CENX.O is idling its Hawesville smelter for "approximately nine to twelve months" after the power cost to operate the plant "more than tripled the historical average in a very short period". Century boasts that its Kentucky facility is the largest North American producer of military-grade aluminium. Hawesville's special status played an important role in the Trump Administration's use of Section 232 national security provisions to impose import duties on primary aluminium in 2018. Tariff protection has not been sufficient to withstand the impact of the energy hit. Alcoa is also idling one of three lines at its Warrick smelter in Indiana, citing "operational challenges, which stem from workforce shortages in the region". Offsetting the impact on regional supply will be the full phased return of Canada's Kitimat smelter after a protracted strike last year. But North American aluminium production, down by 4.6% so far this year, is likely to do no more than stabilise around current low levels. CHINA STILL POWERING UP China's aluminium production is currently rebounding as smelters recover from last year's aggressive energy efficiency targets, now modified after the resulting rolling power crunch. The country's annualised run-rate has accelerated by almost four million tonnes to 40.6 million tonnes so far this year. Here too, though, the margin pressure is on. The recent precipitous price collapse means that around half of China's capacity is now operating at a cash cost below the current metal price, according to AZ Global Consulting. But don't expect immediate curtailments. China's smelters have a long history of toughing out periods of low prices with some cushioned by their relationship with regional governments. A more likely reaction is a slowdown of new capacity coming on line. There are signs, according to AZ Global, that investors are already growing cautious with projects slated to start this year pushed back until 2023. POWER PINCH Availability of cheap power has always shaped the aluminium smelting landscape, but that reliance on continuous electricity to process alumina into metal is now becoming ever more acute. It's not just the massive short-term impact of Russia's invasion of Ukraine on all fossil-fuel markets. It's also about the bigger global drive towards renewable energy, which requires massive changes in grid structure and efficiency, as Chinese smelters found out to their cost in 2021. The longer-term headache of securing low-priced power in a structurally-challenged energy market isn't going away. But right now the energy crisis spreading out of Europe is already acting as a major brake on global aluminium production. Despite China's collective ramp-up, global primary metal output was still 0.1% lower year-on-year in the first six months of 2022. The opinions expressed here are those of the author, a columnist for Reuters. European power crunch spells big trouble for regional aluminium smeltershttps://tmsnrt.rs/3yZOTO7 European aluminium smelters have been hardest hit by margin squeezehttps://tmsnrt.rs/3yWQ6py (Editing by Kirsten Donovan) ((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.
2022-07-21 00:00:00+00:00	AA	Thursday's ETF with Unusual Volume: XMMO	The Invesco S&P MidCap Momentum ETF is seeing unusually high volume in afternoon trading Thursday, with over 472,000 shares traded versus three month average volume of about 63,000. Shares of XMMO were off about 0.5% on the day. Components of that ETF with the highest volume on Thursday were Alcoa, trading down about 2.1% with over 9.1 million shares changing hands so far this session, and Knight-swift Transportation Holdings, up about 3.8% on volume of over 2.6 million shares. Pdc Energy is lagging other components of the Invesco S&P MidCap Momentum ETF Thursday, trading lower by about 4.6%. VIDEO: Thursday's ETF with Unusual Volume: XMMO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-21 00:00:00+00:00	AA	METALS-Copper retreats on stubborn recession fears ahead of ECB move	By Eric Onstad LONDON, July 21 (Reuters) - Copper slipped on Thursday ahead of an expected increase to interest rates by the European Central Bank, reminding investors of recession risk from aggressive moves to curb inflation. Three-month copper CMCU3 on the London Metal Exchange (LME) lost 2% to $7,231 a tonne by 1000 GMT, erasing Wednesday's 1.4% gain. Copper has shed 33% since hitting a record peak of $10,845 in early March on fears that an economic slowdown in top metals consumer China and a potential global recession would curb metals demand. "Clearly the focus of the market is now on demand destruction because of the rising recession risks," said Julius Baer analyst Carsten Menke. Though Menke does not expect a global recession, he added that increasing bearish sentiment means prices probably have further to fall. "The risks are clearly to the downside. Even though I think we have undershot, I would not bottom fish at these levels." Worries about economic risks were heightened by data on Wednesday showing U.S. housing starts in June fell to their lowest since September 2021 against the backdrop of decades-high inflation. Aluminium was the best LME performer, with benchmark prices dipping 0.1% to $2,426.50, supported by continued concern over the impact on production from high energy prices. Romania's ALUM will halt output of aluminium raw material alumina for 17 months and lay off about 70% of its staff as soaring energy prices make production costs unsustainable, its owner said on Thursday. U.S. aluminium producer Alcoa AA.N on Wednesday cut its guidance for this year's alumina shipments. Among other metals, LME zinc CMZN3 fell 2.3% to $2,938.50 a tonne, nickel CMNI3 shed 1.9% to $20,785, lead CMPB3 eased by 0.8% to $2,016 and tin CMSN3 was down 0.5% at $24,560. For the top stories in metals and other news, click TOP/MTL or MET/L (Reporting by Eric Onstad Editing by David Goodman) ((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.
2022-07-20 00:00:00+00:00	AA	Alcoa Q2 Profit, Revenues Beat Street View	(RTTNews) - Alcoa Corp. (AA) Wednesday reported results for the second quarter, with both earnings and revenues beating Wall Street analysts' expectations, driven by higher aluminum prices. Pittsburgh-based Alcoa reported second-quarter profit of $549 million or $2.95 per share, compared to last year's profit of $309 million or $1.63 per share. Excluding one-time items, earnings for the quarter were $496 million or $2.67 per share, compared to last year's profit of $281 million or $1.49 per share. On average, 10 analysts polled by Thomson Reuters expected earnings of $2.31 per share. Revenues for the quarter rose to $3.64 billion from $2.83 billion a year ago. Analysts had a consensus revenue estimate of $3.51 billion. "We had a strong first half of 2022 with nearly $2 billion in Adjusted EBITDA and cash flows that have enabled more buybacks under our existing stock repurchase program as well as continued quarterly dividend payments," said Alcoa President and CEO Roy Harvey. "We have returned more than $380 million so far this year to our investors, and today we announced an additional $500 million authorization for future stock repurchases." Alumina shipments were flat at 2.44 million metric tons compared to last year. Aluminum shipments slipped to 674 thousand metric tons from 767 thousand metric tons last year. Bauxite shipments dropped to 0.6 million dry metric tons from 1.1 million last year. Average price per metric ton of alumina increased to $442 from $282 last year, while aluminum's average price rose to $3,864 per metric ton from $2,753 per metric ton last year. Looking forward, the company expects total aluminum shipments to remain unchanged from the prior forecast, ranging between 2.5 and 2.6 million metric tons in 2022. The company has decreased its 2022 projection for alumina shipments to range between 13.6 and 13.8 million metric tons, a reduction of 0.6 million metric tons from the prior forecast primarily due to the lower shipments in the first half of 2022. Alcoa also decreased its 2022 projection for bauxite shipments to range between 44.0 and 45.0 million dry metric tons, a change of 2 million dry metric tons from the prior projection due to continuing disruptions in the Atlantic bauxite market and lower demand from refineries in the first half of 2022. AA closed Wednesday's trading at $45.06, up $0.16 or 0.36%, on the NYSE. The stock further gained $1.42 and $3.15 in the past 52-week period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-20 00:00:00+00:00	AA	Alcoa (AA) Beats Q2 Earnings and Revenue Estimates	Alcoa (AA) came out with quarterly earnings of $2.67 per share, beating the Zacks Consensus Estimate of $2.60 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.69%. A quarter ago, it was expected that this bauxite, alumina and aluminum products company would post earnings of $2.99 per share when it actually produced earnings of $3.06, delivering a surprise of 2.34%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Alcoa, which belongs to the Zacks Metal Products - Distribution industry, posted revenues of $3.64 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 4.33%. This compares to year-ago revenues of $2.83 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Alcoa shares have lost about 24.6% since the beginning of the year versus the S&P 500's decline of -17.4%. What's Next for Alcoa? While Alcoa has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Alcoa: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.20 on $3.19 billion in revenues for the coming quarter and $7.53 on $13.22 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Metal Products - Distribution is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Constellium (CSTM), has yet to report results for the quarter ended June 2022. The results are expected to be released on July 27. This aluminum company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. Constellium's revenues are expected to be $2.17 billion, up 18.8% from the year-ago quarter. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Constellium SE (CSTM): Free Stock Analysis Report To read this article on Zacks.com 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.
2022-07-20 00:00:00+00:00	AA	Alcoa Q2 22 Earnings Conference Call At 5:00 PM ET	(RTTNews) - Alcoa Corp. (AA) will host a conference call at 5:00 PM ET on July 20, 2022, to discuss Q2 22 earnings results. To access the live webcast, log on to https://investors.alcoa.com/events-and-presentations/events-calendar/default.aspx To listen to the call, dial +1 (877) 883-0383 (US) or +1 (412) 902-6506 (International), Conference ID: 9874912. For a replay call, dial +1 (877) 344-7529 (US) or +1 (412) 317-0088 (International), Access Code: 8333937. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-20 00:00:00+00:00	AA	Notable Wednesday Option Activity: CALX, STAA, AA	Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Calix Inc (Symbol: CALX), where a total of 2,614 contracts have traded so far, representing approximately 261,400 underlying shares. That amounts to about 54.1% of CALX's average daily trading volume over the past month of 483,150 shares. Especially high volume was seen for the $30 strike put option expiring August 19, 2022, with 862 contracts trading so far today, representing approximately 86,200 underlying shares of CALX. Below is a chart showing CALX's trailing twelve month trading history, with the $30 strike highlighted in orange: Staar Surgical Co. (Symbol: STAA) saw options trading volume of 2,146 contracts, representing approximately 214,600 underlying shares or approximately 53.3% of STAA's average daily trading volume over the past month, of 402,865 shares. Particularly high volume was seen for the $70 strike put option expiring August 19, 2022, with 1,066 contracts trading so far today, representing approximately 106,600 underlying shares of STAA. Below is a chart showing STAA's trailing twelve month trading history, with the $70 strike highlighted in orange: And Alcoa Corporation (Symbol: AA) options are showing a volume of 31,208 contracts thus far today. That number of contracts represents approximately 3.1 million underlying shares, working out to a sizeable 53% of AA's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $46 strike call option expiring July 22, 2022, with 2,589 contracts trading so far today, representing approximately 258,900 underlying shares of AA. Below is a chart showing AA's trailing twelve month trading history, with the $46 strike highlighted in orange: For the various different available expirations for CALX options, STAA 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.
2022-07-20 00:00:00+00:00	AA	Alcoa (AA): Looking for a Potential Options Trade	W elcome to the ORATS earnings report where we scan for companies with upcoming earnings announcements, check out historical earnings information, and find a potential options trade. Read on or watch the video overview here: https://youtu.be/oYIEM62crYo. Let's start by running a scan on stocks reporting earnings this week, which includes the total option volume indicator, sorted from greatest to least. Focusing on Alcoa, as we click through, we see this mid-cap company in the aluminum industry reports earnings on Wednesday, July 20th, after the close. The earnings and financials tab takes us to more detail showing the options market expecting a move of 7.9% in either direction. This move was breached in 5 out of the last 12 earnings. During that time, the post-earnings move was outside of the implied range 5 times. In those cases, long straddles were profitable. The rest of the earnings moves likely yielded profitable short straddles. We can overlay quarterly financial data by clicking on the ratios below the earn move graph. Let's look at the PE ratio, which is the stock price divided by the trailing twelve months earnings per share. For AA, the current PE ratio is 4.9, which is 105.3% over the average for the last twelve earnings observations. Returning to the overview tab, we can quickly run a scan to find the best option trades. Since earnings are right around the corner, we scan for neutral strategies, then filter the scan results by S%, or smoothed edge, by setting it between negative and positive 3%. This helps narrow the results to trades that are fairly priced. The highest ranked trade is a Long Put Calendar with strikes at 45, expiring on Friday, October 21st and Friday, August 26th, for a debit of $1.95. By pulling up the trade, we can see the theoretical values in more detail. The distribution edge, found by the expected value of the payoff picture on the stock's historical distribution, has an edge of 36.4%. The forecast edge, which is derived from historical volatility, has an edge of -8.1%. Lastly, the smoothed edge, which is calculated by drawing a best fit curve through the monthly implied volatilities, has an edge of 2.0%. The edge is relative to the mid-market price of the trade. Greater positive edges are a theoretical benefit to the trader. We can also look at the payoff graph. The reward to risk divides the max gain by the max loss. Here the 1.4 to 1 is the ratio of the max gain of $278 to the max loss of $-198. There are two break evens for this Long Put Calendar at 38.03 and 55.15. The total greeks and ThinkOrSwim code complete the information on the trade analysis popout. Next, let's look at this trade in the trade builder. Over the last month, the stock price fell 11.0%, while the thirty-day implied volatility fell 4.2%. The average slope of the trendlines is negative. The heatmap on the right side of the graph is green where volatility and slope are undervalued, and red where they are overvalued. In this case, short term IV and slope are neutral, while the long term is neutral. We can also see this trade overlaid on the monthly implied volatility graph in the chain tab. The legs for this trade are circled. For any questions or issues with the article, please contact otto@orats.com. To subscribe to the dashboard, please visit https://orats.com/dashboard. Disclaimer: The opinions and ideas presented herein are for informational and educational purposes only and should not be construed to represent trading or investment advice tailored to your investment objectives. You should not rely solely on any content herein and we strongly encourage you to discuss any trades or investments with your broker or investment adviser, prior to execution. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. Option trading and investing involves risk and is not suitable for all investors. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-17 00:00:00+00:00	AA	Weekly Preview: Earnings To Watch This Week (AA, IBM, NFLX, TSLA)	A stronger-than-expected retail sales data report and what the market interprets as moderation in inflation expectations has revived the lure for risker assets. The combination of last week’s strong jobs report and a drop in commodity prices have also been encouraging signs that perhaps the worst of the market correction is behind us. Obviously, whether or not that's true remains to be seen, and fears of a recession persist. And it’s not yet clear whether the Federal Reserve will pivot from its hawkish stance on interest rates. For now, it's nonetheless encouraging that, after suffering its biggest first-half percentage decline in 60 years, the Dow Jones Industrial Average has started the second-half on a strong note. But the main question investors want to know is whether this rebound can continue. The stock market surged on Friday with the Dow rising 656.77 points, or 2.14%, to end Friday's session at 31,286.94. Among the Dow’s notable gainers were Apple (AAPL), Microsoft (MSFT), Salesforce (CRM) and Walt Disney (DIS). Driven by strong Q2 earnings results from the some of the world's largest banks, the financial sector rose almost 4%, posting the biggest gain among all of the groups in the S&P 500 index. Citigroup (C) surged more than 14% thanks to strong Q2 profits that beat Street estimates. Wells Fargo (WFC) also rose despite weakness in its mortgage-lending business and larger provisions for credit losses limited its Q2 profits. Among the reason for the strong stock recovery is the retail sales data which rose by 1% in June, a modest improvement over what economists had expected. The stronger-than-expected number suggested that, while budgets are tight, consumers are still spending despite the rise in inflation. It’s worth noting, however, that while consumer spending is strong, bank earnings suggest that consumers are relying on credit card debt for their buying power. And this could lead to potential headwinds in the quarters ahead. Nevertheless, second quarter earnings season kicks into high gear with results expected from technology heavyweight Netflix. Can its earnings pull tech stocks out of the doldrums? Netflix is one of several names investors will be watching this week. IBM (IBM) - Reports after the close, Monday, Jul. 18 Wall Street expects IBM to earn $2.28 per share on revenue of $15.25 billion. This compares to the year-ago quarter when earning were $2.33 per share on $18.75 billion in revenue. What to watch: IBM has always been a great stock to buy for dividend investors, but has the company become more appealing to growth investors as well? The tech giant has struggled to grow revenues over the past decade and has not benefited in the massive economic expansion that saw cloud leaders such as Amazon (AMZN) and Microsoft (MSFT) produce double-digit revenue gains. But as it transitions away from its legacy businesses, IBM’s turnaround has seemingly begun. The company’s cloud ambitions have shown some promise in recent quarters and has provided ample revenue strength to support a higher multiple, thanks to the Red Hat acquisition which modernized the cloud business. In particular, the hybrid cloud now provides IBM the foundation to run any application. Currently boasting 3,800 customers on their hybrid cloud platform at the end of FY 2021, IBM in the first quarter added 200 more new customers, which brought the total to above 4,000. As it stands, the hybrid cloud business now accounts for more than 70% of total software revenue in the most-recent quarter. The market is now giving IBM more credit for its cloud transition. But for the shares to maintain their outperformance, the company on Monday will need to demonstrate continued operating leverage and revenue growth acceleration. Netflix (NFLX) - Reports after the close, Tuesday, July. 19 Wall Street expects Netflix to earn $2.96 per share on revenue of $8.05 billion. This compares to the year-ago quarter when earnings were $2.97 per share on $7.34 billion in revenue. What to watch: Netflix stock has underperformed the market significantly in 2022, falling 48% and 66% in the respective three and six months. The stock has also plunged 72% and 53% over the past nine months and 12 months, respectively. Is now a buying opportunity? There are tons of burning questions for Netflix management heading into the upcoming earnings report. Aside from the recent loss of subscribers, investors will want to know if Netflix will ever grow again. Price increases in the U.S. and Canada and parts of Europe have contributed to the sub losses. The company has forecasted revenue growth of 10% for the just-ended quarter, which is about 50% below prior estimates. Netflix was once growing new subscribers at rate of about at the 25 million per year. Those days are seemingly long gone. However, Netflix wants to pivot, partnering with Microsoft (MSFT) to implement an ad-supported tier of its service. The company is also cracking down on account sharing, hoping to recoup potential lost revenue. However, it’s not clear how soon these initiatives can bear fruit. That question will be answered when Netflix issues its guidance forecast for the next quarter and full year. Alcoa (AA) - Reports after the close, Wednesday, Jul. 20 Wall Street expects Alcoa to earn $2.44 per share on revenue of $3.61 billion. This compares to the year-ago quarter when earnings came to $1.49 per share on revenue of $2.64 billion. What to watch: Shares of the aluminum giant have been under heavy punishment, falling some 17% over the past month and more than 33% over the past six months. Not only is the stock down 31% year over date, compared the 20% drop int he S&P 500 index, if you’ve bought and held Alcoa stock since its 52-week high of $98 you have lost close to 60%. The decline in metal stocks have been driven by not only recession fears, but also excess inventory. Aluminum is used in a broad range of industrial and consumer end markets. However, Covid-related lockdowns in China has also impacted aluminum demand, particularly in the automotive sector, while also adding to supply chain disruptions. Prior to these events, Alcoa’s business was trending strongly in terms of profitability and cash flow generation. The business is still expected to produce between $3.5 to $4 billion of EBITDA in 2022. And while there appears to be support for higher aluminum prices in the second half of the year, Alcoa on Wednesday must speak positively about the demand/supply outlook for the next several quarters to get investors to be excited about the prospects of the aluminum industry and Alcoa stock. Tesla (TSLA) - Reports after the close, Wednesday, Jul. 20 Wall Street expects Tesla to earn $1.98 per share on revenue of $17.39 billion. This compares to the year-ago quarter when earnings came to $1.45 per share on revenue of $11.96 billion. What to watch: Is now a good time to buy Tesla stock? Not only have the shares plunged roughly 50% from their highs in November of around $1240, the decline in Tesla seems more pronounced when compared to other high-growth tech stocks that neither generate the level of cash as Tesla, nor have the same level of buzz. The stock looks attractive at current levels, now trading around 40 times forward earnings, compared to 175 at its high. The market’s bearishness is due to fears of the recession. However, Tesla has shown with its product-pricing flexibility that it can navigate a recession relatively well. Meanwhile, few car companies have been able to match Tesla’s execution track record, which includes topping analysts’ profit estimates by close to 30% average over the past four quarters. Having recently announced its Q2 production and delivery numbers that includes a surge of 750% in Model S/X sales, Tesla is poised to deliver another top and bottom line beat. Notably, demand for Tesla's higher-end vehicles remains strong and the company is will continue to generate revenues from the higher-end line in the quarters and years ahead. Tesla’s increased focus on its growth strategy, namely production and profit margins, have been a major factor in the company’s recent success and will be the main driver of the stock on Wednesday. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-14 00:00:00+00:00	AA	Should iShares Core S&P MidCap ETF (IJH) Be on Your Investing Radar?	Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the iShares Core S&P MidCap ETF (IJH), a passively managed exchange traded fund launched on 05/22/2000. The fund is sponsored by Blackrock. It has amassed assets over $56.51 billion, making it the largest ETFs attempting to match the Mid Cap Blend segment of the US equity market. Why Mid Cap Blend With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment. Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 1.57%. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation to the Industrials sector--about 18.30% of the portfolio. Financials and Consumer Discretionary round out the top three. Looking at individual holdings, Molina Healthcare Inc (MOH) accounts for about 0.80% of total assets, followed by Camden Property Trust Reit (CPT) and Alcoa Corp (AA). The top 10 holdings account for about 6.08% of total assets under management. Performance and Risk IJH seeks to match the performance of the S&P MidCap 400 Index before fees and expenses. The S&P MidCap 400 Index measures the performance of the mid-capitalization sector of the U.S. equity market. The ETF has lost about -19.22% so far this year and is down about -13.18% in the last one year (as of 07/14/2022). In the past 52-week period, it has traded between $219.07 and $290.54. The ETF has a beta of 1.12 and standard deviation of 28.81% for the trailing three-year period, making it a medium risk choice in the space. With about 410 holdings, it effectively diversifies company-specific risk. Alternatives IShares Core S&P MidCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IJH is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The iShares Russell MidCap ETF (IWR) and the Vanguard MidCap ETF (VO) track a similar index. While iShares Russell MidCap ETF has $25.80 billion in assets, Vanguard MidCap ETF has $46.46 billion. IWR has an expense ratio of 0.19% and VO charges 0.04%. Bottom-Line While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Core S&P MidCap ETF (IJH): ETF Research Reports Alcoa (AA): Free Stock Analysis Report Molina Healthcare, Inc (MOH): Free Stock Analysis Report Camden Property Trust (CPT): Free Stock Analysis Report Vanguard MidCap ETF (VO): ETF Research Reports iShares Russell MidCap ETF (IWR): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-13 00:00:00+00:00	AA	Alcoa (AA) Reports Next Week: Wall Street Expects Earnings Growth	The market expects Alcoa (AA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2022. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 20. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise. Zacks Consensus Estimate This bauxite, alumina and aluminum products company is expected to post quarterly earnings of $3.01 per share in its upcoming report, which represents a year-over-year change of +102%. Revenues are expected to be $3.77 billion, up 33.1% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 14.32% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Alcoa? For Alcoa, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -16.94%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that Alcoa will beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Alcoa would post earnings of $2.99 per share when it actually produced earnings of $3.06, delivering a surprise of +2.34%. Over the last four quarters, the company has beaten consensus EPS estimates four times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Alcoa doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Zacks' Top Picks to Cash in on Electric Vehicles Big money has already been made in the Electric Vehicle (EV) industry. But, the EV revolution has not hit full throttle yet. There is a lot of money to be made as the next push for future technologies ramps up. Zacks’ Special Report reveals 5 picks investors See 5 EV Stocks With Extreme Upside Potential >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com 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.
2022-07-12 00:00:00+00:00	AA	Alcoa (AA) Dips More Than Broader Markets: What You Should Know	Alcoa (AA) closed at $42.25 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%. Prior to today's trading, shares of the bauxite, alumina and aluminum products company had lost 14.27% over the past month. This has lagged the Industrial Products sector's loss of 7.43% and the S&P 500's loss of 1% in that time. Investors will be hoping for strength from Alcoa as it approaches its next earnings release, which is expected to be July 20, 2022. On that day, Alcoa is projected to report earnings of $3.01 per share, which would represent year-over-year growth of 102.01%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.77 billion, up 33.1% from the year-ago period. AA's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $14.39 billion. These results would represent year-over-year changes of +29.28% and +18.42%, respectively. Investors might also notice recent changes to analyst estimates for Alcoa. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 26.09% lower. Alcoa currently has a Zacks Rank of #5 (Strong Sell). Investors should also note Alcoa's current valuation metrics, including its Forward P/E ratio of 4.84. For comparison, its industry has an average Forward P/E of 5.27, which means Alcoa is trading at a discount to the group. Investors should also note that AA has a PEG ratio of 0.62 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Metal Products - Distribution stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices. The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 6% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report To read this article on Zacks.com 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.
2022-07-12 00:00:00+00:00	AA	Will Raw Material Cost Inflation Mar Alcoa's (AA) Q2 Earnings?	Alcoa Corporation AA is set to release second-quarter 2022 earnings numbers on Jul 20, after market close. The Zacks Consensus Estimate for AA’s second-quarter earnings has been revised downward by 10.9% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters. Let’s see how things are shaping up for Alcoa this earnings season. Alcoa Price and EPS Surprise Alcoa price-eps-surprise \| Alcoa Quote Factors to Note Alcoa’s second-quarter performance is expected to have benefited from higher shipments and pricing in the Aluminum segment. Increased shipments for value-add products are likely to have driven total shipments in the segment. Higher shipments and pricing are expected to get reflected in Aluminum segment revenues. The Zacks Consensus Estimate for Aluminum segment’s total sales (third-party sales + intersegment sales) for the second quarter indicates a 20.6% jump from the year-ago reported quarter’s figure. Strong third-party pricing and higher shipments are likely to have aided the Alumina segment’s performance as well. The consensus mark for Alumina segment total sales (third-party sales + intersegment sales) suggests a 41.5% surge from the second-quarter 2021 reported number. However, increased raw material and energy costs are likely to have hurt Alcoa’s bottom line in the second quarter. Persistent supply chain disruptions might have also impacted the company’s performance. What Does the Zacks Model Say? Our proven model does not conclusively predict an earnings beat for Alcoa this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here. Earnings ESP: Alcoa has an Earnings ESP of -15.95% as the Most Accurate Estimate is pegged at $2.74, lower than the Zacks Consensus Estimate of $3.26. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Alcoa carries a Zacks Rank #5 (Strong Sell). Highlights of Q1 Earnings Alcoa’s first-quarter 2022 earnings of $3.06 per share beat the Zacks Consensus Estimate of $2.99. The bottom line improved significantly year over year. Although, the company’s total revenues of $3.29 billion increased year over year, it missed the Zacks Consensus Estimate by 5.80%. Stocks to Consider Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season: Crane Holdings CR has an Earnings ESP of +6.98% and a Zacks Rank #2. The company is slated to release second-quarter 2022 financial numbers on Jul 25. Crane Holdings’ earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.2%. Zebra Technologies ZBRA has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 2. Zebra Technologies’ earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.8%. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis Report Crane Holdings, Co. (CR): Free Stock Analysis Report Zebra Technologies Corporation (ZBRA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
2022-07-11 00:00:00+00:00	AA	Wall Street Eagerly Waits for Q2 Earnings Season to Commence	We start out a new full week of trading rather quietly — no economic data prints released before the opening bell this morning, nor Q2 earnings reports, which begin registering at a slightly hotter clip than we’ve seen thus far. We’re coming off a relatively flat Friday, but pre-market futures are in the red: the Dow -170 points, the Nasdaq -100 and the S&P 500 — currently carrying a five-day winning streak — is -25 points. A few years back, when Alcoa AA was still part of the Dow 30 index, earnings season “officially” began upon the aluminum giant’s earnings report. In subsequent years, we’ve come to see the big Wall Street banks’ reports as the start of earnings season. Those begin this week: JPMorgan Chase JPM comes out with Q2 tallies Thursday, Citigroup C and Wells Fargo WFC — among many other financial firms — on Friday. Even before these, however, we’ll hear from PepsiCo PEP on Tuesday and Delta Air Lines DAL Wednesday. So even before we get results from how the biggest financial institutions in the world fared in Q2, we’ll find out how the consumer dealt with making Consumer Discretionary choices amid skyrocketing gasoline prices, which then bled into costs for Transportation, thus leading to hire prices for delivered goods. Mid-week, perhaps the biggest print of economic data all month — at least, before the Fed policy meeting at this end of July — arrives in the form of Consumer Price Index (CPI) numbers, which has become shorthand for inflation. It’s expected June ratcheted up inflation even more, especially year over year, to +8.8% from +8.6% previously reported. This is obviously continuing a four-decade high. That said, “core” inflation — which strips out food and energy costs — is expected to come down a tad, to +5.7% from +6.0% last reported. This is still obviously much higher than the Fed’s desired +2% inflation, but at least it’s headed in the right direction. And if this data shows demand destruction having an effect on things like housing prices, we may even see a downward surprise on these inflation metrics. Clearly, this is what’s behind the Fed hiking interest rates 150 basis points (bps) since March, with another 50-75 bps expected in the last week of July. That the market is trading down at this hour tells us there is plenty of concern about CPI and Q2 earnings results — particularly how companies guide through the remainder of 2022 and into ’23. But could a few better-than-expected prints change this trajectory? Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. Free: See Our Top Stock and 4 Runners Up >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Alcoa (AA): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research 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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