Aluminum Stock Gains Support Ahead of Earnings

Alcoa Corp (NYSE:AA) is scheduled to report earnings after the close on Thursday, July 16. According to Zacks Research, analysts expect earnings of $2.41 per share on $3.93 billion in revenue in its upcoming report.

 

Options traders are pricing in a relatively modest post-earnings reaction. The options market implies a next-day move of 10.4%, double AA's average post-earnings move of 5.2% over the last eight quarters. The aluminum name has closed lower six times within the last eight reports. It is worth noting that the stock popped 12.6% after its October report.

 

The stock has shed 42.7% since its June 2 record high of $84.31, but fresh support has emerged from its 280-day moving average, however.