During earnings season, one often gets to see glaring examples of how irrational the stock markets can be. Alcoa reported its second-quarter numbers on July 15 after market close. It was the company's strongest quarter since 2016, when it became an independent upstream aluminum company after the-then Alcoa split into two.
The aluminum stock's second-quarter earnings failed to impress, but the market could have missed the good points.
Alcoa (NYSE: AA) shares shot through the roof on Tuesday, jumping as high as 10.7% as of 2:40 p.m. EDT. With yet another analyst joining the bandwagon who believes Alcoa shares have significant upside ahead, more and more investors are betting on the stock. Morgan Stanley turned bullish about the metals and mining sector in June and singled out Alcoa as a top pick.