Arconic Inc. (ARNC) Buy or Sell Stock Guide

Last updated: Sep 23, '17

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 forward dividend yield is 0.99%, higher than the industry (0.07%) and sector (0.07%) forward dividend yields.

5. ARNC PEG ratio (P/E adjusted for growth) is 0.90, and it’s low compared to its industry peers’ PEG ratios.

6. ARNC average analyst rating is Buy.

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.

4. ARNC quarterly revenue growth was 0.80%, lower than the industry and sector average revenue growth (1.55% and 1.55%, respectively).

5. ARNC profitability is declining. The YoY profit margin change was -5.00pp.

6. ARNC average analyst price target ($24.14) is below its current price ($26.21).

What are your thoughts on ARNC?

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