Earnings season is a few weeks away and Dow component and economic bellwether Alcoa is already on investors’ radar. David Silver, equity research analyst at Wall Street Strategies, shared his insights on the company.
“I don’t think Alcoa’s a buying opportunity yet,” Silver told CNBC. “I don’t think we’ve come far enough fundamentally to justify the movement in the price of stock.”
Silver said Alcoa so far has made a great move over the past 6 months, aluminum prices have soared and the end markets are looking better than they were earlier on in the year.
“Fundamentally, inventories are still extremely high,” he said. “It’s tough to be in an environment with rising prices, rising inventory levels and production that’s relatively flat.”
- Track Aluminum and Other Commodities Here
- Cramer: Avoid These 3 Dangerous Investments
- October To Be ‘Cruel For Markets’: Strategist
No immediate information was available for Silver or his firm.
Other Top Metals Companies:
Freeport-McMoRan Copper & Gold
United States Steel