How Wall Street Is Rating Aluminum Stocks in 3Q17
Earnings season for 2Q17 is nearly over. Most aluminum producers have reported their quarterly earnings. Alcoa (AA) reported its 2Q17 financial results on July 19 after the markets closed. You can read Alcoa’s 2Q17 Earnings: What Made Investors Nervous? for an overview of Alcoa’s 2Q17 earnings.
Norsk Hydro (NHYDY) released its 2Q17 earnings on July 25 while Rio Tinto (RIO) released its half-year earnings report on August 2. Century Aluminum (CENX) also released its 2Q17 financial results on August 2. Overall, it’s been a subdued earnings season for aluminum stocks. Especially Century Aluminum’s 2Q17 earnings triggered a selling spree in the stock.
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We’ve seen upward momentum in the base metals space over the last couple of weeks. Aluminum, which was among the best-performing base metals this year, has added to its 2017 gains. On the other hand, copper—which was among the weakest metals this year—has also shown strength. Supply-side concerns, coupled with a better-than-expected demand environment from China, are supporting copper prices (XME).
Analysts typically reassess their recommendations and target prices following a company’s earnings release to reflect the earnings and guidance provided by the company’s management. In this series, we’ll analyze how analysts rate aluminum stocks after their 2Q17 earnings releases. We’ll also see what aluminum industry executives had to say on the aluminum industry’s outlook during their 2Q17 earnings calls.
Let’s begin by analyzing how brokerages rate Alcoa after its 2Q17 earnings in the next part of this series.