Alcoa (AA, $46.98) shares get rating upgrade at Jefferies
Alcoa shares got a rating boost from a Jefferies analyst.
Analyst Christopher LaFemina raised her rating on the aluminum producer to buy from hold. LaFemina also hiked his price target to $60 from $52.
LaFemina mentioned that Alcoa is a relative winner because the outlook for aluminum has become more optimistic with the global initiatives for decarbonization gathering steam.
"While the near-term outlook for aluminum is risky as China's economy slows, the longer-term story has become more positive on structural factors," the analyst noted.
"Aluminum is an important metal for decarbonization and will likely continue to take share from steel given its lightness (about one-third the weight of steel) and the fact that it is easily recyclable."
According to LaFemina, China recently becoming a net importer of aluminum as its production growth slows is a critically important structural change to the aluminum markets.
The analyst said that Alcoa is well-positioned to benefit from the improving supply/demand outlook for aluminum.
AA in +3.41% Uptrend, advancing for three consecutive days on October 07, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where AA advanced for three days, in of 288 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 13, 2024. You may want to consider a long position or call options on AA as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AA just turned positive on September 13, 2024. Looking at past instances where AA's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
AA moved above its 50-day moving average on September 16, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AA crossed bullishly above the 50-day moving average on September 23, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
AA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 235 cases where AA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AA moved out of overbought territory on October 03, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for AA moved below the 200-day moving average on September 13, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 75%.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.556) is normal, around the industry mean (2.038). P/E Ratio (0.000) is within average values for comparable stocks, (127.701). AA has a moderately low Dividend Yield (0.010) as compared to the industry average of (0.030). P/S Ratio (0.644) is also within normal values, averaging (0.801).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a miner of bauxite and aluminum
Industry Aluminum