Arconic Inc. (ARNC) Buy or Sell Stock Guide

Last updated: Jun 04, '18

The analysis below may be helpful to you if you have any of the following questions about ARNC stock:

  • Is ARNC a buy or a sell?
  • Should I sell or hold ARNC stock today?
  • Is ARNC a good buy / a good investment?
  • What are ARNC analyst opinions, recommendations, ratings?

Here are ARNC stock buy reasons/signals:

1. We are in the early innings of the current aerospace upcycle, and Arconic’s increased aerospace exposure positions the company for substantial growth.

2. Arconic will benefit as aluminum takes share from steel in the automotive space.

3. Arconic will remain highly acquisitive, increasing its exposure to attractive growth markets and cutting-edge technologies such as 3-D printing.

4. ARNC stock price ($17.75) is close to the 52-week low ($16.93). Perhaps now is a good time to buy?

5. ARNC quarterly revenue growth was 10.20%, higher than the industry and sector average revenue growth (1.53% and 1.53%, respectively).

6. ARNC profitability is improving. The YoY profit margin change was 7.02pp.

7. ARNC forward dividend yield is 1.02%, higher than the industry (0.08%) and sector (0.08%) forward dividend yields.

8. ARNC forward P/E ratio is 11.23, and it’s low compared to its industry peers’ P/E ratios.

9. ARNC Price/Sales ratio is 0.66, and it’s low compared to its industry peers’ P/S ratios.

10. ARNC PEG ratio (P/E adjusted for growth) is 0.69, and it’s low compared to its industry peers’ PEG ratios.

11. ARNC average analyst rating is Buy.

12. ARNC average analyst price target ($24.14) is above its current price ($17.75).

Here are ARNC stock sell reasons/signals:

1. Expectations for commercial aircraft deliveries will prove lofty, weighing on profits from the EPS segment.

2. Higher aluminum prices will drive up unit costs, reducing profits for the company’s aluminum product lines.

3. Arconic will overpay for acquisitions in an effort to rapidly diversify away from aluminum product lines.

What are your thoughts on ARNC?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Comments (0)expand_more