Investment thesis
Yesterday, Alcoa Corporation (NYSE:AA) fell 8.47% amid no significant news which could explain it. Earlier, on April 16, 2021, the stock rose 8.5% due to the good quarterly 1Q FY2021 results (8-K
Alcoa Corporation: Time To Buy The Dip
Summary
- Yesterday, Alcoa Corporation fell 8.47% amid no significant corporate news which could explain it.
- Earlier, on April 16, 2021, the stock rose 8.5% due to the good quarterly 1Q FY2021 results.
- The global aluminum market is projected to grow at a CAGR of 5.5% for the next 6-7 years due to increased demand from different economic sectors.
- Valuation multiples show the potential undervaluation of the company.
- Based on the financial analysis performed, I believe that the drawdown may be a good opportunity for mid- and long-term investors to increase the allocation of their portfolios to aluminum by buying Alcoa stock.
Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.
He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in AA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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