– Still, YUM like many of the other companies mentioned herein, has come under pressure of late, falling 15% since marking its 52-week high earlier this spring. The problem is the same mentioned for the other legends herein, deteriorating Europe and slowing Chinese economic growth.
Alcoa (AA)
According to the company website Alcoa is the world’s leading integrated aluminum company, providing jobs to 61,000 employees across 31 countries. Alcoa’s main competitors in the metals and mining industry are Aluminum Corp. of China (ACH)
and Alumina (AWC). The company has been an integral part of the advancement of aerospace, automobiles and industrial markets. Which is why the company benefited greatly when the factory order report was released and it was announced that the orders had increased for the first time in three months. On the other hand though when payroll was released today and the numbers were lower than the forecasted growth the company took a hit.
As for the earnings report next week the current estimate shows a 78.1% decrease from last years second quarter when Alcoa reported earnings of 32 cents per share. This is partly due to the decrease in stock price from $9.60 to $8.90. Despite all these negative statistics, Alcoa is trying to build on four straight revenue increases. Which could be possible with the company’s announcement that it had reached an agreement to sell its 351-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners. This sale could boost earnings at the last minute and keep Alcoa’s quarterly revenue increase streak going.