Buy Alcoa Shares: Analysis and Forecast

Published: November 2nd, 2021 by Andrew

Alcoa is one of the main American industries for the production of aluminum and its history is long and varied. This metal is increasingly in demand across multiple industries and this has led investors to buy Alcoa shares expecting that they could grow remarkably quickly.

But is it really so? Is a rise in the price of this stock likely?

You will find answers to these and many other questions in our detailed guide, in which we will evaluate:

  • The economic situation of the company
  • Growth prospects
  • Industry analysts’ forecasts

Here is a diagram highlighting the relevant data of this American company:

Listing 👜 New York Stock Exchange
ISIN 📌 ISIN: US0138721065

Benchmark

📃 NYSE
Established 📅1888
Sector 🧪Metallurgical
Ticker 🏷️AA
Turnover 💰 9,286 billions dollars
Best Platforms 📈 eToro / Trade.com

 

To buy Alcoa shares you need a broker, so here is a short list of the best online trading platforms on the market:

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    Alcoa live price

    Here is the real time price quotation of Alcoa Shares:

    Alcoa: the company

    Alcoa’s origins are very ancient, in fact it derives from the Pittsburgh Reduction Company, founded in 1888 thanks to Charles Martin Hall, who discovered the aluminum smelting process, almost simultaneously with the Frenchman Paul Héroult.

    The Hall-Héroult process is still one of the most important processes for the production of aluminum from bauxite.

    The company then took the name of Aluminum Company of America and consisted of some plants at Niagara Falls and in Quebec.

    In 1910 the name Alcoa was coined for two of the premises used in the production process and then became the company name in 1999.

    The American company has grown steadily in the following decades, also thanks to some important acquisitions. In 2007 it also attempted a takeover in Alcan to become the world’s leading aluminum producer, but without success.

    In 2016, the company split into:

    • Alcoa Corporation, which is engaged in the extraction and production of raw aluminum
    • Arconic, which deals with the processing of aluminum and other metals

    Alcoa’s headquarters recently returned to Pittsburgh as it originally was.

    How to buy Alcoa shares

    To buy Alcoa shares, you need a financial intermediary and there are two main types on the market:

    • Traditional brokers, which provide for the opening of a securities account, the payment of stamp duty and trading commissions.
    • CFD Brokers, who offer Contracts for Difference, do not need a securities account, do not pay stamp duty and do not provide for trading fees.

    The latter are undoubtedly more advantageous if we talk about online trading, especially if you do not have large capital and the commissions of traditional brokers affect a lot in profits.

    If, on the other hand, you are interested in investing in the long term or you have substantial capital, you can also evaluate the classic brokers, despite the higher costs.

    But CFD Brokers, being within everyone’s reach, remain the most frequent choice, here’s why:

    • You can do short selling
    • There are no trading fees
    • Even small investments can be made
    • The trading platforms are very intuitive
    • Demo account to practice

    Where to buy Alcoa shares

    What matters most in choosing a Broker, is the safety and reliability demonstrated. You cannot trust any broker, especially the unlicensed ones, they often hide real trading scams!

    So you only have to evaluate brokers who are in possession of a regular license, preferably issued by an undoubtedly reliable body such as CONSOB, CySEC or FCA.

    These authorizations are essential if you want to buy Alcoa shares safely, in fact in this guide we only deal with regulated brokers.

    In the next 3 paragraphs we have included some brief descriptions of the market leading CFD brokers: eToro and Trade.com, all great choices for buying Alcoa shares:

    eToro

    eToro is certainly one of the most popular financial intermediaries on the planet. It has convinced over 20 million users to subscribe to its platform and has obtained various licenses, including that of our CONSOB.

    Offers a large number of stocks and assets via CFDs. Specifically, in addition to stocks you can trade on indices, commodities, cryptocurrencies, forex, etc. Without paying trading fees.

    The fame of this broker is mainly due to its trading platform, considered among the most intuitive on the market.

    Here’s what the Alcoa stock looks like on the eToro platform:

    buy alcoa shares

    How do you buy Alcoa shares with eToro?

    • Register for free on eToro
    • Log into your Demo or real account (by depositing at least € 50)
    • Select the Alcoa stock and click “Trade”
    • Decide whether to buy or sell the shares and how much to bet in the operation
    Try the eToro platform for free

    But there is a tool developed by eToro that deserves to be mentioned, because it represents a real revolution in the world of automatic trading: Copy Trading.

    It is a system that allows you to copy the operations that are performed by the best traders in the world (chosen by you on the platform) and replicate them on your trading account.

    In this way you will get the same returns (based on the investment made) of the copied traders, automatically and without extra costs.

    Here are some of the traders you might copy:

    etoro copytrading

    Click here and choose which trader to copy

    Trade.com

    Trade.com has achieved a high level of notoriety throughout the European Union and is now making a name for itself in our country as well.

    In addition to international licenses, Trade.com has also obtained the prestigious CONSOB and CySec authorisations for Europe.

    With this Broker you can trade without paying commissions, not only in stocks but also in commodities, indices, cryptocurrencies, forex, etc.

    If you want to improve your operating results, the Trading Course developed by Trade.com is undoubtedly an excellent support, full of information and professional advice.

    This is a free pdf, here is the official link to download it:

    Download the Trading Course for free by clicking here

    There are two trading platforms made available by Trade.com: MetaTrader 4 and the Web Platform.

    To buy Alcoa shares on Trade.com you need to follow these simple guidelines:

    • Register for free on Trade.com
    • Access to the “real” account and deposit at least 100€
    • Select the Alcoa asset and click on “Buy” or “Sell” depending on your strategy
    • Decide how much to invest in the operation
    Click here and register for free on Trade.com

    Alcoa business model

    Alcoa’s business model is that of a company engaged in the production of bauxite, alumina and aluminum products.

    It operates across the segments:

    • Bauxite, which represents the company’s global bauxite mining operations.
    • Alumina, which includes the company’s worldwide refining system, which transforms bauxite into alumina.
    • Aluminum. which manages the smelting operations to produce primary aluminum.

    The following are the relevant data from Alcoa:

    • Quotation: NYSE
    • Ticker: AA
    • Index: Russell 1000
    • ISIN: US0138721065
    • Sector: Metals
    • Founded: Pittsburgh, Pennsylvania, United States (1888)
    • Founder: Charles Martin Hall
    • Headquarters: Pittsburgh, Pennsylvania
    • CEO: Roy Harvey
    • Revenue: $ 9.286 billion (2020)
    • Net profit: – $ 170 million (2020)
    • Number of employees ~ 14,600

    Is it worth buying Alcoa shares?

    To understand whether it is worthwhile to buy Alcoa shares we need to analyze some factors:

    • Aluminum prices are rising
    • The company is looking to exploit the electric vehicle market

    As you can see in the graph below, the Alcoa stock, after the drawdown in March 2020 (due to the global pandemic) has recovered very well and is continuing with a strong upward trend:

    buy-alcoa-shares-chart-max

    The two factors we have considered are just some of those that contribute to the growth of the Alcoa stock but they are undoubtedly relevant. Analysts argue that aluminum will be increasingly used by industry, especially that of electric vehicles.

    Alcoa ISIN

    The ISIN code of Alcoa is US0138721065. 

    Alcoa Competitors

    Alcoa’s main competitors are the largest companies in the sector operating worldwide, including:

    • Kaiser Aluminum
    • Precision Castpart
    • ATI
    • UAC
    • Doncasters
    • CPP Corporation

    Alcoa shares forecast

    Alcoa recently restarted an aluminum smelter in Brazil that had been inactive since 2015 and plans to get it up and running in a few months to be able to meet the increased demand.

    Among other things, high-purity aluminum is an indispensable raw material for synthetic sapphire, used among other things in semiconductors and LED lights and, more recently, in lithium-ion batteries that power electric vehicles.

    buy-alcoa-shares-chart-6months

    Here are the estimates and price targets on Alcoa, issued by some of the major international investment banks:

    • JPMorgan Chase & Co. increased its price target for Alcoa from $ 50.00 to $ 52.00.
    • Argus upgraded Alcoa from a pending rating to a buy rating and raised its price target for the stock from $ 49.94 to $ 58.00.
    • Deutsche Bank Aktiengesellschaft raised its price target on Alcoa from $ 48.00 to $ 60.00 and assigned the stock a buy rating.
    • Credit Suisse Group raised its Alcoa price target from $ 51.00 to $ 56.00, and gave the company a “superior performance” rating.
    • Zachs Investment Research moved Alcoa from a hold rating to a buy rating and set a price target of $ 55.00 for the company.
    • Jefferies Financial Group raised its Alcoa price target from $ 35.50 to $ 40.00 and gave the company a “pending” rating.

    Alcoa target price

    According to ratings issued by 10 analysts over the past year, the forecasts for the Alcoa stock are positive and based on the current 3 hold and 7 buy ratings issued by these industry experts.

    The twelve-month average price target for Alcoa stock is $ 52.00 with a high price target of $ 62.00 and a low price target of $ 38.00.

    buy alcoa shares

    Conclusions

    With the soaring demand for both semiconductors and lithium-ion batteries, Alcoa is looking to diversify production to become a key player in the burgeoning electric vehicle market.

    Aluminum prices are on the rise and despite a 2020 with the handbrake on, already in 2021 Alcoa has shown a remarkable recovery in terms of turnover and profits.

    Buying Alcoa stock is certainly a promising investment, especially if you decide to follow short-term swings, which can offer great returns.

    CFD brokers are perfect for this kind of trading, you will save on commissions and you can also aim downwards when necessary.

    Before investing any money, if you do not have enough experience, practice on a Demo account, offered by the CFD Brokers we have proposed. This way you can optimize your strategy without taking any risks.

    Here are the links to immediately access the Demo accounts:

    When was Alcoa born?

    Alcoa derives from the Pittsburgh Reduction Company, founded in 1888.

    Where is Alcoa based?

    Alcoa’s current headquarters are in Pittsburgh, USA.

    What is Alcoa’s target price?

    The twelve-month average target price for Alcoa stock is $ 52.00.

    How to buy Alcoa shares?

    With eToro, an extremely reliable CFD Broker, which allows you to trade on the markets without paying commissions.

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