(AA) Alcoa - Ratings and Ratios

Alcoa Corporation is a global leader in the production of bauxite, alumina, and aluminum, with operations spanning across multiple countries, including Australia, Brazil, Canada, and the United States. The companys diversified business model is structured around two primary segments: Alumina and Aluminum, allowing it to capitalize on the entire value chain, from mining to smelting and casting.

The companys Alumina segment is focused on extracting bauxite and refining it into alumina, which is then sold to aluminum smelters and other customers for use in industrial applications. Meanwhile, the Aluminum segment is responsible for smelting and casting aluminum into various products, including alloy ingot and value-add ingot, which are used in a range of industries, such as transportation, construction, and packaging.

In addition to its core aluminum business, Alcoa Corporation also generates energy through its power plants, which are used to supply electricity to the wholesale market, industrial consumers, and distribution companies. This diversification into energy production not only provides a supplementary revenue stream but also helps to offset some of the companys energy costs.

From a technical analysis perspective, Alcoa Corps stock price has been trending around its 20-day Simple Moving Average (SMA) of $28.01, indicating a level of stability. However, the stocks 50-day SMA of $26.67 and 200-day SMA of $34.63 suggest a potential for volatility. The Average True Range (ATR) of 1.06, equivalent to 3.79%, indicates a moderate level of price movement. Given the current technical setup, a potential trading range for AA could be between $25.00 and $30.00, with a breakout above $30.00 potentially signaling a bullish trend.

Fundamentally, Alcoa Corps market capitalization stands at $7.215 billion, with a forward Price-to-Earnings (P/E) ratio of 8.87, indicating a relatively undervalued stock. The companys Return on Equity (RoE) of 17.09% suggests a strong ability to generate profits from shareholder equity. Considering the current fundamental data and technical trends, a forecast for Alcoa Corps stock price could be around $32.00 in the next 6-12 months, driven by a potential recovery in the aluminum industry and the companys efforts to improve its operational efficiency.