Valuation analysis for Alcoa Inc (NYSE:AA)

September 30, 2016, 10:11 am ET, BY Thomas H. Kee Jr - Editor, Stock Traders Daily | Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Based on a valuation metric that compares earnings growth for Alcoa Inc (NYSE:AA) to PE multiples, Stock Traders Daily recognizes recently declining EPS growth rates but also expects earnings growth to increase aggressively between 2016 and 2017 and that will make the current multiple look much more reasonable than it does today.

That should reduce the multiple to a 17-handl at the end of 2017 if price remains the same, but 2015 multiples look hard to come by unless the stock falls again.  Technically, that could happen, but upside potential outweighs downside risk in he charts.

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Support and Resistance Plot Chart for AA

AA Growth rate - Yearly

AA PE chart

AA PEG chart

Blue = Current Price
Red = Resistance
Green = Support

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