Alcoa Stock Soars 4.55% Ahead of Earnings Report

Alcoa's (AA) stock price surged 4.55% intraday, reaching its highest level since March 2025, marking a 3.24% increase for the day and a 5.90% rise over the past three days.

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 8.5%. The maximum drawdown during this period was 15.4%, which occurred in 2023, highlighting the strategy's resilience amid market volatility. While the strategy provided consistent returns, it was not without its challenges, as evidenced by the maximum drawdown. Overall, it proved to be a effective approach, delivering steady returns and making it a viable option for investors looking to capitalize on AA's performance post-high.

Recent market sentiment towards Alcoa has shown a noticeable increase in bearish sentiment, as evidenced by the significant trading volume of put options, particularly for July and August 2025. This trend suggests that investors may have negative expectations for the company's future stock performance.

Alcoa is anticipated to release its earnings report soon, with analysts projecting an earnings per share of $0.87 and revenue of $2.96 billion. The upcoming earnings report is expected to have a significant impact on the stock price, as it will provide insights into the company's financial health and future prospects.

Analyst ratings and stock insights have also played a role in shaping investor sentiment and decision-making. Recent discussions and perspectives from analysts can influence how investors view Alcoa, potentially affecting its stock price.

Additionally, Alcoa's announcement regarding the closing of the Ma'aden transaction on July 8, 2025, may have implications for its financial outlook and investor sentiment. This strategic move could impact how the market perceives the company's future performance and growth potential.