Ticker (Exchange) – AA (NYSE)
ISIN - US0138721065
Current price – $36.73
Target price – $44.14
Growth potential – 20.2%🔥
Dividend yield – 1.2%💵
Investment horizon – 1 year
Alcoa Corporation (Aluminum Company of America) is an American industrial company, one of the world's largest aluminum producers. It also holds leading positions in bauxite mining and alumina production. The latest quarterly report showed that Alcoa is returning to profitability. Combined with the optimistic outlook for the aluminum market, this makes the company's shares attractive for purchase. The fair value of Alcoa shares is estimated at $44.14, representing an upside potential of 20.2%. The dividend yield is 1.2%.
Investment thesis
🔼 Return to Profitability. Alcoa's financial report for Q2 2024 demonstrated positive trends in the company. Revenue increased by 8.3% y/y, reaching $2.9 bln. Adjusted net profit amounted to $30 mln ($0.16 per share) compared to a loss of $145 mln ($0.81 per share) in the same period year ago. Both figures exceeded market expectations. In August, Alcoa completed the acquisition of Alumina Limited, which will strengthen its position in the aluminum market and save $100 million after consolidating its tax structure.
🔼 Optimistic Outlook. A positive mid-term factor for Alcoa shares is the favorable market conditions for aluminum. The market is expected to grow at an average annual rate of 6% until 2033, reaching $311 billion. The company itself forecasts sustained profitability in 2024-2025.
🔼 Dividends. Alcoa returns profits to investors through dividends. The expected dividend yield is 1.2%, which is a decent indicator.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US0138721065
Current price – $36.73
Target price – $44.14
Growth potential – 20.2%🔥
Dividend yield – 1.2%💵
Investment horizon – 1 year
Alcoa Corporation (Aluminum Company of America) is an American industrial company, one of the world's largest aluminum producers. It also holds leading positions in bauxite mining and alumina production. The latest quarterly report showed that Alcoa is returning to profitability. Combined with the optimistic outlook for the aluminum market, this makes the company's shares attractive for purchase. The fair value of Alcoa shares is estimated at $44.14, representing an upside potential of 20.2%. The dividend yield is 1.2%.
Investment thesis
🔼 Return to Profitability. Alcoa's financial report for Q2 2024 demonstrated positive trends in the company. Revenue increased by 8.3% y/y, reaching $2.9 bln. Adjusted net profit amounted to $30 mln ($0.16 per share) compared to a loss of $145 mln ($0.81 per share) in the same period year ago. Both figures exceeded market expectations. In August, Alcoa completed the acquisition of Alumina Limited, which will strengthen its position in the aluminum market and save $100 million after consolidating its tax structure.
🔼 Optimistic Outlook. A positive mid-term factor for Alcoa shares is the favorable market conditions for aluminum. The market is expected to grow at an average annual rate of 6% until 2033, reaching $311 billion. The company itself forecasts sustained profitability in 2024-2025.
🔼 Dividends. Alcoa returns profits to investors through dividends. The expected dividend yield is 1.2%, which is a decent indicator.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
