10 Best Aluminum and Aluminum Mining Stocks to Buy Now

3. Alcoa Corporation (NYSE:AA)     

Number of Hedge Fund Holders: 40

Alcoa Corporation (NYSE:AA) is a global leader in bauxite, alumina, and aluminum products that are sold internationally. Established in 1888 and headquartered in Pittsburgh, Pennsylvania, Alcoa operates across the aluminum value chain, including mining, refining, and smelting. The Alumina segment involves mining bauxite, which is then refined into alumina to produce aluminum metal. The Aluminum segment comprises the smelting and casthouse systems.

In Q2 2024, Alcoa Corporation (NYSE:AA) achieved a revenue upsurge of 8.3% compared to the same quarter last year, driven by higher alumina and aluminum prices. Revenue in the Alumina segment rose by 5%, while the Aluminum segment saw a 16% surge, driven by higher third-party prices.

Consequently, the company turned around its previous loss to achieve a positive net profit this quarter. Adjusted EBITDA increased by $193 million. Alcoa Corporation (NYSE:AA) ended the quarter with a positive cash balance of $1.4 billion, with cash from operations of $287 million and free cash flow of $123 million. Working capital also improved.

Looking ahead, Alcoa Corporation (NYSE:AA) is making significant strides in its strategic initiatives. On June 28, the company, in collaboration with Rio Tinto, advanced its ELYSIS technology to eliminate all greenhouse gas emissions from the smelting process. Additionally, Alcoa’s profitability improvement programs are on track to achieve $645 million in cost savings by the end of 2025

If we look at the price movement, the stock has experienced a negative 1-month movement of 2.10% and a negative YTD movement of 4.6%. This decline is attributed to the uncertainty surrounding its proposed acquisition of Alumina Limited, which has raised concerns about stock dilution and integration risks. Moreover, China’s slow economic recovery and Alcoa’s decision to shut down its Kwinana alumina refinery have further impacted investor confidence.