We recently published a list of 10 Firms Buck Broader Market Optimism. In this article, we are going to take a look at where Alcoa Corporation (NYSE:AA) stands against other firms buck broader market optimism.
Wall Street’s main indices finished in the green territory on Friday amid a series of catalysts buoying investor appetite.
The Dow Jones Industrial Average rose by 0.80 percent, while the S&P 500 and Nasdaq Composite rallied by 1.26 percent and 1.77 percent, respectively.
Despite the wider optimistic sentiment, 10 companies managed to post declines. Here is why:
To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
Industrial workers carrying out the complex production process of alloy ingot at a factory.
Alcoa Corporation (NYSE:AA)
Alcoa Corporation (NYSE:AA) saw its shares drop by 6 percent or 2.28 points to finish at $35.71 each as investors sold off positions amid the lack of clear catalysts to spark buying appetite.
As indicated by its 30-day performance, investors appeared to be cautious about the company’s growth prospects amid multiple macroeconomic factors that are putting brakes on the rally in aluminum prices seen through COVID-19. At present, aluminum prices are down by 35 percent to $2,580 from a high of about $4,000 per metric ton in March 2022.
Alcoa Corporation (NYSE:AA) produces and sells bauxite, alumina, and aluminum products, while also operating hydropower plants that generate and sell electricity to various industrial and wholesale markets.
Overall, AA ranks 5th on our list of firms buck broader market optimism. While we acknowledge the potential of AA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.