Despite a formidable rise of 125% since the March lows of this year, at the current price of around $12 per share, Alcoa stock (NYSE: AA) has still not reached its near-term potential. Alcoaâs stock has rallied from $5.48 to $12.30 off the recent bottom compared to the S&P which increased 47% during the same period. The stock was able to beat the broader market in the last 6 months as aluminum prices rebounded and started to rise since April following the US government announcing a string of measures along with stimulus packages announced in other economies to keep businesses afloat. Also, with the Chinese economy opening up, the market is expecting a rise in aluminum demand.
With the stock still about 25% lower than its pre-Covid peak (February 2020), we believe that the stock has an upside of more than 15% from its current level. Our dashboard What Factors