Alcoa’s Outlook Implies Large Market Gains Ahead; Will JP Morgan Follow?
This earnings season just kicked off with a major surprise from Alcoa. It wasn’t what Alcoa (AA) did – it’s what it said. Although last quarter’s earnings came in under analysts’ already reduced estimates, management kept its sales growth forecasts virtually unchanged. “Kept” implies a passive, do-nothing attitude. Actually, it’s an active statement founded on management’s convictions.
There are two components of this growth projection, and each could fuel stock market gains, particularly the latter.
This article is posted on SeekingAlpha.com
