(AA) Alcoa - Ratings and Ratios

Alcoa Corporation (NYSE:AA) is a global leader in the aluminum industry, operating across the entire value chain from bauxite mining to alumina refining, aluminum production, and energy generation. The company has a significant presence in Australia, Brazil, Canada, Iceland, Norway, Spain, the United States, and other international markets. Alcoa’s operations are organized into two primary segments: Alumina and Aluminum. The Alumina segment focuses on mining bauxite and other aluminous ores, refining them into alumina, which is sold to aluminum smelters and manufacturers of industrial chemical products. The Aluminum segment involves smelting and casting aluminum into primary aluminum products, including alloy ingot and value-add ingot, which are used in transportation, building and construction, packaging, wire, and other industrial applications. Additionally, Alcoa generates and sells electricity in the wholesale market to traders, industrial consumers, and other energy companies. The company, rebranded from Alcoa Upstream Corporation in October 2016, has a long history dating back to its founding in 1886 and is headquartered in Pittsburgh, Pennsylvania.

From a financial perspective, Alcoa Corporation is well-positioned with a market capitalization of $6.032 billion USD. The stock currently trades at $26.44, with a price-to-earnings (P/E) ratio of 6.23 and a forward P/E of 6.48, indicating undervaluation relative to its earnings potential. The price-to-book (P/B) ratio of 1.04 suggests that the stock is fairly valued relative to its book value. The company’s price-to-sales (P/S) ratio of 0.48 highlights its ability to generate revenue efficiently. Alcoa’s return on equity (RoE) stands at 14.79%, reflecting strong profitability for shareholders. On the technical side, the stock’s average 20-day volume is 7.474 million shares, with a last price of $26.44. The short-term moving average (SMA 20) is $26.25, while the medium-term (SMA 50) and long-term (SMA 200) moving averages are $30.86 and $35.68, respectively. The Average True Range (ATR) of 1.94 indicates moderate volatility.

3-Month Forecast - Technical Outlook: The stock is currently trading slightly above its SMA 20 ($26.25) but below its SMA 50 ($30.86) and SMA 200 ($35.68), suggesting potential resistance at these levels. The ATR of 1.94 indicates moderate price movement, with potential volatility ranging between $24.50 and $28.38 in the near term. - Fundamental Outlook: With a P/E ratio of 6.23 and a forward P/E of 6.48, the stock may attract value investors seeking undervalued assets. The company’s strong RoE of 14.79% and low P/S ratio of 0.48 further support its fundamental strength. However, macroeconomic factors such as aluminum demand and energy costs could influence performance over the next quarter.