Bull of the Day: Alcoa (AA)

There are so many reasons to be excited about the stock market right now. With a new Administration comes fresh ideas and hope. That has manifested itself into a nice stock market rally on day 1. But, eventually, it’s stocks with the strongest earnings trends that beat the market over the long run. One way to uncover these stocks is by leaning on the power of the Zacks Rank. Stocks in the good graces of our Zacks Rank have the strongest earnings trends.Today’s Bull of the Day counts itself among the few Zacks Rank #1 (Strong Buy) stocks. It’s Alcoa (AA). Alcoa is a global industry leader in bauxite, alumina and aluminum products. We have it in our Metal Products – Distribution industry which ranks in the Top 36% of our Zacks Industry Rank.The reason for the favorable rank comes down to analyst estimate revisions. Over the course of the last sixty days, three analysts on Wall Street have increased their earnings estimates for the stock while four have followed suit for next year. The bullish sentiment has increased our Zacks Consensus Estimate for the current year from 89 cents to 94 cents, while next year’s number is up from $2.98 to a staggering $4.27. That represents earnings growth of 354% over the current year numbers.This is forecast to come along with some revenue growth as well. Current year revenue growth is forecast to come in 11.48% better than last year, with next year swelling another 9.4% to $12.87 billion. That means Alcoa is currently trading at 9.26x forward earnings and less than 1x sales at 0.93.Image Source: Zacks Investment ResearchThe Price, Consensus and EPS Surprise Chart on Zacks tells the story of a stock that’s seen its earnings bottom out along with its stock price, and now it’s on the march higher. Year-over-year numbers continue to impress, with growth going out to 2026. Still, earnings are much lower than when the stock was trading over $90 per share.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alcoa (AA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks