10 Undervalued Stocks with the Highest Upside Potential

5. Alcoa Corporation (NYSE:AA)

Forward P/E Ratio: 8.49x

Upside Potential: 54%

Number of Hedge Fund Holders: 47

Alcoa Corporation (NYSE:AA) is a worldwide aluminum producer with mining, refining, and smelting operations. Industrial demand worldwide has made Alcoa a global leader in the automobile, aerospace, and packaging industries.

Alcoa Corp. (NYSE:AA) reported Q4 2024 EPS of $0.76, 9.8% down from a year earlier due to declining aluminum prices. The company is, however, increasing low-carbon aluminum production in parallel with heightened demand for green metals for EV and renewable energy applications.

The company is investing in bauxite mining and refining of alumina and is driving cost and operational efficiency through restructuring. Future growth is supported by investment in industrial and infrastructure activity in emerging economies.

The analysts project a 54% rise from current price levels. Market trends, aluminum pricing, and cost-cutting initiatives will be reported in April 2025 with the next earnings announcement.