Alcoa Inc. (NYSE:AA) is set to report its third quarter earnings after the markets are closed today. The stock has performed poorly in the last year, falling over 24%. The company has not been a good indicator of the economy in recent months. Even when Alcoa announced a “good” quarter within the last year, the stock rallied slightly and the plummeted over time.
Alcoa specializes in manufacturing and producing aluminum products. However, a better way to play any good news that comes out of Alcoa, is to buy any other materials stock. When Alcoa beats estimates it tends to bring up its entire sector, including the other aluminum and steel stocks. A company such as US Steel has even outperformed Alcoa on good earnings. Alcoa is not the best long term play, as it has disappointed investors so often. When the material stocks get wet, Alcoa seems to rust the most.
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