Arconic stock: buy or sell?

ARNC stock price: $24.32 -3.11% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

2

Arconic closed today at $24.32 and slipped a terrible -3.11%. With Friday it's been 3 sliding days in a row, loosing $-0.91 (-3.64%).

Arconic Inc. engineers, manufactures, and sells lightweight metals of aluminum, titanium, and nickel worldwide. It operates through three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions.

Should I buy Arconic stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Arconic stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Arconic stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we gathered 6 ratings published for ARNC stock in the last 30 days.

The general sentiment of these ratings is bullish for ARNC stock, with 3 positive ratings.
Is ARNC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-7BarclaysEqual WeightOverweight
2019-7-18Longbow ResearchBuyNeutral
2019-7-1Jefferies Financial Groupn/aBuy
2019-5-2Goldman Sachs GroupNeutralBuy
2019-2-8Cowenn/aHold
2019-1-14JPMorgan Chase & Co.OverweightNeutral

Arconic stock analysis

Daily outlook

Arconic slipped a terrible -3.11% and closed at $24.32.

Arconic slipped a terrible -3.11% and closed at $24.32. On June, SMA100d and SMA200d crossed up triggering a rise of 0.79%. On April ARNC price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock.

ARNC stock chart (daily)

Weekly outlook

Arconic declined a tragic -2.09% this week. Late July ARNC plummed a frightening -8.25% in just one week. Early August ARNC boosted an outstanding 5.79% in just one week.

From a weekly outlook, ARNC marked an uptrend of rising tops and rising bottoms. Since its last top early July at $26.38, price slid and bounced up back from $23.15. Breaking down under $23.15 would cancel the current uptrend and it might test lower supports. Note that $26.38 might act as a resistance line. By mid June, SMA20w and SMA40w crossed up triggering a rise of 5.92%. Since price and SMA40w lines crossed up late April, ARNC climbed $4.31 (21.54%).

ARNC stock chart (weekly)

Arconic stock price history

Arconic stock historical price chart

ARNC stock reached 52-week highs on July at $26.38, and all-time highs 2007-07-16 with a price of 92.96.

Arconic stock price target is $26.80

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' ARNC stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 4 price forecasts for Arconic stock:
ARNC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-7BarclaysUpgrades$20.00$31.0055%
2019-7-1Jefferies Financial GroupRaises Target$23.00$30.0030.4%
2019-5-2Goldman Sachs GroupUpgrades$21.00$26.0023.8%
2019-2-8CowenReiteratesn/a$20.00-
(in average)$21.30$26.8026.0%
The price target for Arconic stock is $26.80, moving in a range between $31.00 and $20.00. In average, analysts' outlook on ARNC price target is positive, increasing the forecast by a 26.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Arconic reported its latest financial data, posting a beatiful gain for the Earnings per Share (EPS). Analyst were expecting $0.30 per share, but Arconic posted $0.33.
ARNC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.46n/a
2017-Q32017-10-230.270.26-3.7%
2017-Q42018-02-050.240.3129.2%
2018-Q12018-04-300.320.346.3%
2018-Q22018-07-310.290.3727.6%
2018-Q32018-10-300.30.326.7%
2018-Q42019-02-080.30.3310.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a great increase of 8.13% to $14,014.00 million USD. Instead, its earnings margin (compared to sales) rose to 4.58%, that is $642.00 million.

ARNC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$12,542 M-$268 M2.1%-
2015$12,413 M-1.03%$-322.00 M-2.6%-220.15%
2016$12,394 M-0.15%$-941.00 M-7.6%192.24%
2017$12,960 M4.57%$-74.00 M-0.6%-92.14%
2018$14,014 M8.13%$642 M4.6%-967.57%

Quarterly financial results

Arconic posted $3,472.00 million in revenues for 2018-Q4, a -1.48% decline compared to previous quarter. Reported quarter earnings marked $218.00 million with a profit margin of 6.28%. Profit margin inched a 1.71% compared to previous quarter when profit margin was 4.57%. When comparing turnover to same quarter last year, Arconic sales marked a remarkable gain and escalated a 6.14%. Looking back to recent quarterly results, Arconic posted 2 negative quarters in a row.
ARNC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,260 M-$212 M6.5%-
2017-Q3$3,236 M-0.74%$119 M3.7%-43.87%
2017-Q4$3,271 M1.08%$-727 M-22.2%-710.92%
2018-Q1$3,445 M5.32%$143 M4.2%-119.67%
2018-Q2$3,573 M3.72%$120 M3.4%-16.08%
2018-Q3$3,524 M-1.37%$161 M4.6%34.17%
2018-Q4$3,472 M-1.48%$218 M6.3%35.40%
2019-Q1$3,541 M1.99%$187 M5.3%-14.22%

Arconic ownership

When you are planning to invest in a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Arconic, 0.34% of all outstanding shares are owned by its staff.

Bearish positions for ARNC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Arconic:

ARNCAPWCKALU
Market cap$11.0 B$28.2 M$1.4 B
Total shares453.1 M13.8 M16.1 M
Float shares386.8 M3.2 M15.5 M
  - Institutional holdings (%)90.5%5.6%100.6%
  - Insider holdings (%)0.3%75.5%3.3%
Shares in short selling0.0%0.0%0.0%

Arconic summary

Friday, August 23rd, 2019
Open$24.90
Close$24.32
Day range$24.11 - $25.27
Previous close$25.10
Session gain-3.11%
Average true range$0.66
50d mov avg$25.01
100d mov avg$23.30
200d mov avg$21.15
Daily patternlt11c
Weekly pattern lb03a

Arconic performance

To measure stock performance is always good to compare with competitors or related stocks. For Arconic, the benchmark is made against Asia Pacific Wire & Cable and Kaiser Aluminum.
Stock3m6m12m
ARNCArconic9.40%33.26%10.29%
APWCAsia Pacific Wire...-7.27%-13.92%-17.74%
KALUKaiser Aluminum-1.58%-15.92%-15.63%

Arconic competitors

Choosing a list of competitors for Arconic it's difficult. We selected 2 public companies that are related to and can be considered as competitors of Arconic:

Latest Arconic stock news