Alcoa (AA US) has struggled this week, slipping ~0.6%, in line with the underlying commodity. US steel and aluminium stocks surged Monday after President Trump said he would impose 25% duties on all metals imports into the U.S., but the initial gains from Nucor Corp (NUE US) and U.S. Steel (X US) have been mainly lost. AA had climbed ~4% last month after the company’s fourth-quarter results beat estimates on the top and bottom lines. Alcoa reported $1.04 in adjusted earnings per share, above the estimated 97c, on quarterly revenue of $3.48 billion, beating analyst estimates of $3.33 billion, up 29% YoY. We never like to see stocks falling on “good news”, and a test of $30 by AA wouldn’t surprise us.
- We have no plans to add AA to our International Equities Portfolio’s Hitlist.
NB Alcoa Corp-CDI’s trade on the ASX under ticker code AAI.
MM is neutral towards Alcoa Corp (AA US)
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