Earnings Estimates Moving Higher for Alcoa (AA): Time to Buy? – Tale of the Tape

Zacks

Alcoa Inc. (AA) is a Basic materials company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on AA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Alcoa could be a solid choice for investors.

Current Quarter Estimates for AA

In the past 30 days, 5 estimates moved up for Alcoa but there was no downward revision. The consensus estimate trend has been pretty favourable, with estimates increasing from 20 cents a share 30 days ago, to 24 cents today, a move of 20%.

Current Year Estimates for AA

Meanwhile, Alcoa’s current year figures are also looking quite promising, with 8 estimates moving higher in the past month, compared to no downward revisions. The consensus estimate trend has also seen a boost for this time frame, increasing from 70 cents per share 30 days ago to 82 cents today, an increase of 17.1%.

Bottom Line

The stock has also started to move higher lately, adding 6.1% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 Alcoa stock to profit in the near future.

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