AA (Alcoa Inc.): Sell

1= Strong Buy 5=Strong Sell

Summary:

This stock is down 54.28% this year, which is far worse than the Dow and S&P.  The stock has a dividend yield of almost 2% but that's one of its sole positives.  The stock has 80% institutional ownership, which means less volatility in the share price but it has followed the dow decline very closely.  The P/E for AA comes inline with the industry average.  The down side for this stock is the fluctuating price in the metals markets as well as the willingness to spend money by the consumer.  As the consumers begin to conserve money for gas and other necessities as inflation rises people will be buying less things that have the aluminum in them from Alcoa such as cars.  It is for this reason we give AA a sell recommendation.