ALCOA CORPORATION ● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 35.67 USD in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 35.34 support.
● The company is in a robust financial situation considering its net cash and margin position.
● The stock, which is currently worth 2018 to 0.5 times its sales, is clearly overvalued in comparison with peers.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The group usually releases earnings worse than estimated.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 44.67 USD
