Alcoa Stock Surges 35% in a Year: Still Worth Buying?

From Nasdaq: 2025-02-19 15:00:00

Alcoa Corporation’s stock (AA) has surged 35% in the past year, outperforming industry and S&P 500 growth. The company’s Aluminum segment is driving momentum with increased demand in Europe and North America. Alcoa’s strategic actions, acquisitions, and dividends show promise. Earnings estimates for 2025 and 2026 have been revised upwards.

Despite strong performance, AA’s stock valuation is a concern at 8.69X forward P/E ratio. However, compared to market peer Metallus Inc. (MTUS), AA is undervalued. Analyst sentiment remains positive, making it a potential buy. Alcoa’s leading position in alumina and bauxite markets, along with strategic acquisitions, supports growth prospects.

Zacks Investment Research named Alcoa (AA) as a Buy with a Zacks Rank #2. The company’s momentum in Aluminum and Alumina segments, strategic acquisitions, and collaborations bode well for future growth. Analysts predict potential for impressive gains. Download Zacks’ 7 Best Stocks for the Next 30 Days for further insights.



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