Alcoa Stock Soars 3.23% on Earnings, Tariff Easing

Alcoa's stock price surged to its highest level since March 2025 today, with an intraday gain of 3.23%.

The strategy of buying AA shares after they reached a recent high and holding for 1 week yielded moderate returns over the past five years, with an average annual return of 7.5%. The maximum drawdown during this period was 15%, which occurred in 2020, highlighting the strategy's ability to withstand market volatility. While the strategy provided consistent returns, the overall performance was modest, making it suitable for investors seeking stability rather than high growth.

Alcoa's recent stock performance has been influenced by several key factors. The release of the company's Q2 2025 earnings report, despite showing a sequential decline in revenue and profitability, sparked a surge in the stock price. This suggests that investors may have been encouraged by other aspects of the earnings call or the company's future outlook.

Additionally, the easing of tariff concerns has likely contributed to the rise in Alcoa's stock price. However, ongoing US tariffs have pressured the company's operations in Canada, leading to the halting of growth projects in the region.

Investor confidence in Alcoa's future prospects has also been bolstered by the South Dakota Investment Council taking a position in the company and Carmel Capital Partners LLC increasing their stake. These developments may have positively impacted the stock price, reflecting a growing optimism among investors about Alcoa's long-term potential.