Alcoa is the world’s leading integrated aluminum company, they earning release and profit guidance is always one of the most expected announcement in the stock market.
Alcoa provides 763 aluminum products to a range of market such aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets.
One of the biggest advantage in the modern economy for Alcoa is that aluminum is infinitely recyclable, and 75% of all aluminum ever produced, is still in use today.
Alcoa share prices has fallen from $43 dollar in late 2008 when the financial crisis started and have since been trading in discounted range from $6 to $18. Its share prices have been under pressure as the market believe that for their product has declined in the current economy circle.
It could take for Alcoa a year or two to recover some of the value lost. As soon as global market recovery enter in a new gear, investors could expect Alcoa share prices to rise.
This is why its announcement is a leading indicator on the global economical condition, if Alcoa’s product are in demand and the company book order increases, it could be a signal to invest in Alcoa.
Alcoa will announce its earnings report after market closes.