Can Alcoa (AA) Turn It Around in 2012?
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2011 has been one brutal year for Alcoa Inc. (NYSE: AA). Shares of the aluminum maker are down an astonishing 43.45 percent so far in 2011, making it the second worst performer in the Dow behind Bank of America (NYSE: BAC).
Alcoa has missed profit views for the past two quarters as aluminum prices plunged even as demand rose. Economic problems in Europe only exacerbated the issues. China continues to be a bright spot, although worries about a slowing Chinese economy have investors on edge.
The company is set to kick-off the fourth-quarter earnings season on January 9th. On average, analysts see the company earning $0.04 in the quarter although even some of the most bullish analysts see breakeven results or even a loss.
With such a dismal performance this year, investors can hope for better days ahead in the new year.
Analysts at Jefferies recently cut their price target on Alcoa, but the new $12 price target still suggests 39 percent upside. Over the shorter-term the firm believes shares could bounce back 20 percent with the improving U.S. economic data. Jefferies rates the shares a “Buy.”
Alcoa has missed profit views for the past two quarters as aluminum prices plunged even as demand rose. Economic problems in Europe only exacerbated the issues. China continues to be a bright spot, although worries about a slowing Chinese economy have investors on edge.
The company is set to kick-off the fourth-quarter earnings season on January 9th. On average, analysts see the company earning $0.04 in the quarter although even some of the most bullish analysts see breakeven results or even a loss.
With such a dismal performance this year, investors can hope for better days ahead in the new year.
Analysts at Jefferies recently cut their price target on Alcoa, but the new $12 price target still suggests 39 percent upside. Over the shorter-term the firm believes shares could bounce back 20 percent with the improving U.S. economic data. Jefferies rates the shares a “Buy.”
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