Arconic (ARNC) Stock Sinks As Market Gains: What You Should Know
Arconic (ARNC) closed the most recent trading day at $25.87, moving -1.07% from the previous trading session. This change lagged the S&P 500’s 0.77% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.75%.
Heading into today, shares of the maker of engineered products for the aerospace and other industries had gained 15.97% over the past month, outpacing the Basic Materials sector’s gain of 12% and the S&P 500’s gain of 8.19% in that time.
Wall Street will be looking for positivity from ARNC as it approaches its nex t earnings report date. The company is expected to report EPS of $0.49, up 32.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.64 billion, up 1.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.86 per share and revenue of $14.33 billion. These totals would mark changes of +36.76% and +2.23%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ARNC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.48% higher. ARNC is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note ARNC’s current valuation metrics, including its Forward P/E ratio of 14.08. This represents a discount compared to its industry’s average Forward P/E of 15.44.
The Mining – Non Ferrous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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