Alcoa Shares Soar 4.38% on Strong Earnings

Alcoa Inc. (AA) shares rose to their highest level since April 2025 today, with an intraday gain of 4.38%.

The strategy of buying AA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.5% annualized return and a 37.5% total return as of the latest data point in June 2025. However, the volatility was significant, with a maximum drawdown of 15.2% during the period. The Sharpe ratio was 0.48, indicating a reasonable risk-adjusted return. Overall, the strategy showed some promise but came with considerable volatility. Further optimization and backtesting may be necessary to fine-tune the approach.

Alcoa's recent stock price surge can be attributed to several key factors. The company, along with CSX Corp., reported quarterly results that exceeded market expectations, sparking a rally in the stock market. This positive earnings report suggests a potentially strong earnings season, which likely influenced Alcoa's stock price to rise.

Additionally, Alcoa experienced significant revenue growth of 29.63% in the quarter ending March 31, 2025. This substantial increase contributed to a total of $12.67 billion in revenue over the last twelve months, further bolstering investor confidence and potentially driving the stock price higher.

These factors collectively indicate that Alcoa's strong financial performance and positive earnings reports have been instrumental in the recent increase in its stock price. Investors are likely optimistic about the company's future prospects, given its robust revenue growth and strong quarterly results.