Alcoa and Century Aluminum Gets Analyst Coverage: Is 2013 a Turnaround Year for Aluminum?

Wed Jan 23, 2013 8:03am EST

* Reuters is not responsible for the content in this press release.

LONDON, January 23, 2013 /PRNewswire/ --

    Basic Materials sector may not have the glamour of tech sector and internet stocks,
but it is ideally suited for low volatile, fundamentally driven investment. The sector
is inextricably linked to overall economy and acts as a proxy for broad economic trends.
StockCall analysts have completed two technical analysis for companies Alcoa Inc. (NYSE
: AA) and Century Aluminum Company (NASDAQ : CENX). Sign up to access these free reports
at http://www.stockcall.com/registration  

    Aluminum stocks are expected to fare relatively better in 2013 as Alcoa Inc. expects
global demand to grow by 7%, up from 6% growth rate it achieved in 2012. Aluminum sector
will also benefit from stabilizing auto sector, which is among the biggest revenue
generator for the sector. Similarly, improvement in the economy will also lead to growth
in the aviation sector, another major customer segment for aluminum companies. The
sector is steadily moving towards improvement as the other sectors grow strong with the
improvement in economy. Uptick in Housing and construction segment will also boost the
prospects for the companies like Century Aluminum Co. Register now and download the free
report on Century Aluminum at http://www.StockCall.com/CENX012313.pdf  

    Alcoa Up on Strong Quarterly Numbers  

    Alcoa Inc. [Free Technical Report on AA [http://www.stockcall.com/AA012313.pdf ]]
[1]continued its track record of meeting or exceeding consensus estimates for its
quarterly numbers. The company kicked off the earning season by reporting $5.9 billion
in revenue, beating estimates for revenue at $5.6 billion. Alcoa also approved quarterly
dividend of 3 cents per share, offering 1.3% dividend yield at current market price.
While the stock offered negative capital return in 2012, it has done fairly well so far
in the current year. The company boasts of a strong balance sheet and a healthy cash
position since it generated $933 million in cash flow from operations, up by $670
million from the previous quarter.  

    Alcoa currently offers good entry point. The company is expected to grow its EPS by
over 26% and its bottom-line is likely to benefit from recovering prices for aluminum.
However, at the very same time, it should also be kept in mind that the company's
revenue for its latest reported quarter actually 2% lower than the comparative quarter
of the last year. Alcoa, despite its leadership position in the sector, pays one of the
lowest dividend among its peers. It has also been slashing its dividends in the recent
past. So, if you are looking for an income stock, it would be better to go elsewhere.
However, Alcoa can be good bet in the medium- to long-run.  

    Century Aluminum Looking to Break Loss Streak  

    With $791 million market capitalization, Century Aluminum is one of the relatively
smaller players in the sector. The fact that it lost about half of its market value in
the past 24 months is not very helpful either. The stock also provided negative return
in 2012, largely in-line with the overall trend among the aluminum stocks. But it also
means that it has attractive Price to Book ratio as it has considerably higher valued
assets on its Balance Sheet.  

    Century Aluminum had reported its third quarter revenue at $304.6 million, beating
consensus estimate of $297.7 million. As the company is fundamentally strong, any
recovery in aluminum demand and pricing in 2013 is expected to have positive impact on
the stock.  

    Footer:  

        
        1) Alcoa Inc. Technical Analysis [
          http://www.StockCall.com/AlcoaInc012313.pdf ]


    About StockCall.com  

    StockCall.com is a financial website where investors can have easy, precise and
comprehensive research and opinions on stocks making the headlines. Sign up today to
talk to our financial analyst at http://www.stockcall.com   

StockCall.com

CONTACT:  William T. Knight, info@stockcall.com, +1-646-396-9857 (9:00 am
EST - 01:30 pm EST)
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.