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.
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Notable companies
The most notable companies in this group are Alcoa Corp (NYSE:AA).
Industry description
Aluminum is widely used in the industries like construction, packaging and automotive sector. The segment has seen increased demand for the lightweight variety in automobiles in improving fuel efficiency. The U.S. aluminum industry generates nearly $71 billion a year in direct economic impact (according to The Aluminum Association). Arconic, Inc, Alcoa Corp and Kaiser Aluminum Corporation are major aluminum companies in the U.S.
Market Cap
The average market capitalization across the Aluminum Industry is 6.52B. The market cap for tickers in the group ranges from 138.37K to 54.35B. DKIAF holds the highest valuation in this group at 54.35B. The lowest valued company is NORNQ at 138.37K.
High and low price notable news
The average weekly price growth across all stocks in the Aluminum Industry was -4%. For the same Industry, the average monthly price growth was -9%, and the average quarterly price growth was 10%. AWCMF experienced the highest price growth at 0%, while KALU experienced the biggest fall at -18%.
Volume
The average weekly volume growth across all stocks in the Aluminum Industry was -19%. For the same stocks of the Industry, the average monthly volume growth was 105% and the average quarterly volume growth was 36%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 45
P/E Growth Rating: 55
Price Growth Rating: 65
SMR Rating: 68
Profit Risk Rating: 81
Seasonality Score: 19 (-100 ... +100)