Has Alcoa Corporation (AA) Changed The Narrative?

The average 12-month price target analysts expect from Alcoa Corporation (NYSE:AA) is $47.21. This mean price target represents 79.92% upside over its previous closing price. The stock enjoyed an overall downtrend of -1.28% from the beginning of 2019. The closing share price quoted for January 02, 2019 was $26.24. The -1.28% drop might have been tempting for an investor to sell at this point but in fact that would prove a short-sighted mistake, as sell-side analysts think there is almost 109.6% more gain yet to come for shareholders. Analysts seemed to set $55 as highest price target on its way to greater gains. The median price target they presented was $49.5 for the next 12-months, which suggests a 88.64% upside from current levels. Some analysts have a lowest price target on the stock of $31, which would mean a 18.14% gain in value.

To help you decide whether it’s worth the wait (and the money), Alcoa Corporation (NYSE:AA) is currently trading at 904.83X the company’s trailing-12-month earnings per share, which represents a premium compared to the sector’s 11.11X and comes in above its industry’s 16.71X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $0.03. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Wednesday, January 02 of 2019 shows that the price on average moves $1.45. The average daily volatility is 5.53% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Alcoa Corporation (AA) volume, you will see that it has changed to 3.07 million shares versus the average daily volume of 3.89 million shares.

When you look at the daily chart for AA, you will observe the stock held -42.81% losses in the 6-month period and maintains 4.92% distance from its most recent low. The past 5-day performance for the share stays positive at 4.33% but down -7.4% from its three-week moving average. Comparing to 50-day SMA, Alcoa Corporation shares price is now down -18.82%. It also closed -38.49% lower from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Wednesday with a 1-month performance at -15.33%.