Alcoa Inc (AA): Today's Featured Metals & Mining Laggard
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
Alcoa ( AA) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Alcoa fell $0.09 (-1.0%) to $8.70 on average volume. Throughout the day, 14,530,599 shares of Alcoa exchanged hands as compared to its average daily volume of 18,807,200 shares. The stock ranged in price between $8.60-$8.80 after having opened the day at $8.78 as compared to the previous trading day's close of $8.79. Other companies within the Metals & Mining industry that declined today were: Cardero Resources Corporation ( CDY), down 9.6%, L & L Energy ( LLEN), down 9.1%, Kimber Resources ( KBX), down 7.7% and Pacific Booker Minerals ( PBM), down 5.6%.
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Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. Alcoa has a market cap of $9.5 billion and is part of the basic materials sector. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 1.3% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Alcoa a buy, 4 analysts rate it a sell, and 6 rate it a hold.
TheStreet Ratings rates Alcoa as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
- You can view the full Alcoa Ratings Report .
On the positive front, Quest Rare Minerals ( QRM), down 38.0%, Molycorp ( MCP), down 31.3%, Rare Element Resources ( REE), down 28.0% and Entree Gold ( EGI), down 26.7% , were all gainers within the metals & mining industry with ArcelorMittal ( MT) being today's featured metals & mining industry leader.
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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).