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.
The RSI Indicator for AA moved out of oversold territory on January 19, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 33 similar instances when the indicator left oversold territory. In of the 33 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where AA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on February 21, 2024. You may want to consider a long position or call options on AA as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AA advanced for three days, in of 281 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AA turned negative on February 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
AA moved below its 50-day moving average on February 05, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AA crossed bearishly below the 50-day moving average on February 07, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for AA entered a downward trend on February 20, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (1.174) is normal, around the industry mean (1.741). P/E Ratio (7.319) is within average values for comparable stocks, (20.557). AA has a moderately low Dividend Yield (0.014) as compared to the industry average of (0.050). P/S Ratio (0.473) is also within normal values, averaging (667.028).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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.
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 74, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a miner of bauxite and aluminum
|ETFs / NAME
|VictoryShares US Value Momentum ETF
|First Trust Dorsey Wright Momt & Div ETF
|VanEck JPMorgan EMLcl Ccy Bd ETF
|BNY Mellon US Mid Cap Core Equity ETF
|iShares Emergent Food and AgTch Mult ETF
A.I.dvisor indicates that over the last year, AA has been closely correlated with CENX. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if AA jumps, then CENX could also see price increases.