Alcoa stock: buy or sell
Updated on:
May 17th, 2021
1
Alcoa stock brief
- Alcoa stock moved up 1.46% to close at $39.70 on the stock market last Friday.
- Price is drawing a scaled uptrend since last January with higher tops and higher bottoms. Up to date, shares made a 129.48% profit since the beginning of this rally
- Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Brazil, Canada, and internationally.
Should I buy Alcoa stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AA stock a buy?
In the current situation of Alcoa there is not any eligible buy setup. This doesn't mean $AA will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Alcoa stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies allow us to avoid impulsive decisions based on our sentiments or the noise that surrounds the market. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for shorting Alcoa stock
A guiding principle is that you must never keep a trading operation that generates losses greater than those expected upon purchase. When to sell shares should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Alcoa stock?
In the current situation of Alcoa there is not any eligible sell setup, so Alcoa stock holders with operations in profit can keep their positions
Alcoa ratings
In the last month, 3 brokerage ratings were published for Alcoa. General sentiment is bullish, with 2 out of 3 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| Apr 19th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
| Apr 30th, 2021 | |
| B. Riley | Neutral → Neutral |
| May 10th, 2021 | |
| JPMorgan Chase & Co. | Buy |
Alcoa stock analysis
Since last January, Alcoa has been printing an uptrend that by now marked an amazing 129.48%. Rising highs and lows can be seen easily on a chart and how price provided very few entry points on the breakouts. Latest pullback was last March, when price bounced at $27.11. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $44.42 and $27.11
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on May 7, the price sliced by 4.06%
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for 1 day (weak signal). The RSI value last Friday was 61.63
Alcoa stock price history
Alcoa went public on Jan 2nd, 1962 priced at $0.00 per share1. Since then, AA stock surged by -, with an average of 0.00% per year. If you had invested thousand dollars in Alcoa stock on the IPO, it would be valued $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Alcoa stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.
Along with buy or sell recommendations, financial institutions publish their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial information by the company, and usually. Again, these predictions are not direct recommendations for individual traders and should not be trusted blindly.
There are 3 price forecasts posted for Alcoa that average $45.00. That is a 13.35% than the last price ($39.70).
| Brokerage firm | Price target |
|---|---|
| Apr 19th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $36.00 → $41.00 |
| Apr 30th, 2021 | |
| B. Riley | $36.00 → $45.00 |
| May 10th, 2021 | |
| JPMorgan Chase & Co. | $39.00 → $49.00 |
Earnings and financials
Investors event was hosted by Alcoa ($AA) in mid-April after presenting the financial report. Alcoa presented earnings of $0.79 per share on sales of $2.9 billion. The market estimate was $0.46 per share on revenue of $2.7 billion.
Same quarter one year ago, reported EPS was $-0.23, so recently reported EPS means an improvement of 443.48%. Sales skyrocketed a 20.54% on an annualized basis in the , from $23.8B to $28.7B last quarter.Alcoa ($AA) will host the Q2 earnings call next July. Market analysts analysts estimate of $1.16, that is a 46.84% higher than previous quarter.
Alcoa performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Alcoa ($AA) | 16.70% | 79.70% | 156.30% |
Important note:
The comments expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual scenarios of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for educative reasons onlyAlcoa summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $39.1 |
| Close | $39.7 |
| Day range | $38.65 - $39.98 |
| Previous close | $39.13 |
| Session gain | 1.46% |
| Average true range | $2.53 |
| 50d mov avg | $33.73 |
| 100d mov avg | $28.18 |
| 200d mov avg | $21.81 |
| Earnings date | July 14th, 2021 |