After snapping that historic losing streak last quarter, Alcoa just followed up with its strongest post-earnings move in years, surging more than 12% on the day.
The reaction wasn't random or emotional; it was a repricing.
After years of negative reactions, the market finally rewarded improving fundamentals, signaling that sentiment around earnings has changed in a durable way.
These types of inflections tend to matter, especially when they occur after extreme pessimism.
And the fundamental backdrop supports the move.
Alcoa is the largest publicly traded aluminum company, supplying bauxite, alumina, and aluminum to the automotive, aerospace, construction, and energy infrastructure sectors.
In the latest quarter, production improved, costs declined, and profitability surged as higher aluminum prices and a sharply higher Midwest premium were reflected in results.
Management continues to rationalize higher-cost capacity, strengthen the balance sheet, and focus capital on its most competitive assets, precisely what you want to see as the cycle turns higher.
The price is now confirming what the earnings reactions suggested.
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