Home / Street Sector / Stocks under Profitability Radar: Alcoa Corporation (NYSE:AA), Transocean Ltd. (NYSE:RIG)

Stocks under Profitability Radar: Alcoa Corporation (NYSE:AA), Transocean Ltd. (NYSE:RIG)

Alcoa Corporation (NYSE:AA) persists its position slightly strong in context of buying side, while shares price eased up 0.60% during latest trading session. Cowen and Company assumed coverage on shares of Alcoa Inc. (NYSE:AA) in a research note issued on Monday. The brokerage set a “market perform” rating and a $29.00 price target on the stock. Cowen and Company’s target price suggests a potential downside of 8.52% from the stock’s current price.

Alcoa (AA) last released its quarterly earnings results on Tuesday, October 11th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.21. Alcoa had a negative net margin of 0.88% and a positive return on equity of 3.87%. The business had revenue of $5.21 billion for the quarter.

Profitability Ratio Analysis; to measure firm’s performance and profitability, we focus on ordinary profitability ratio, AA has gross profit margin of 14.50% for trailing twelve months, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the firm’s ROI concludes as -4.40%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments.

To make strengthen this views, the active industry firm has Quick Ratio of 0.60, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.03, sometimes its remain same with long term debt to equity ratio. Taking notice on volatility measures, price volatility of stock was 4.95% for a week and 6.13% for a month.

By tracking previous views Transocean Ltd. (NYSE:RIG) also in plain sight to attract passive investors, shares in most recent trading session slightly up -0.93% after traded at $11.66.

For trailing twelve months, RIG attains gross profit margin of 53.10% and operating margin stands at 30.60%, that are showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as 5.10%; it gives answer about efficiency of different investments in different securities. The returns on assets of firm also presenting perceptible condition of profitability, it has ROA of 4.50%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials, price volatility of stock was 3.25% for a week and 4.36% for a month. The performance of firm for the quarter recorded as 15.56% and for year stands at -19.48%, while the YTD performance was -5.82%. The co attains 0.46 for Average True Range for 14 days. The stock price of RIG is moving up from its 20 days moving average with 11.70% and isolated positively from 50 days moving average with 15.50%.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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