We still like them two years after breakup

Article Excerpt

On November 1, 2016, Arconic spun off its bulk aluminum business (Alcoa) as a separate company. Each investor received one Alcoa Corp. share for every three ARNC shares they owned. Both stocks have moved down lately, so they’re roughly flat since the split. Even so, we still like their long-term prospects. ARCONIC INC. $18 (New York symbol ARNC; Conservative Growth Portfolio, Manufacturing & Industry sector; shares outstanding: 483.2 million; Market cap: $8.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.3%; TSINetwork Rating: Average; www.arconic.com) is a leading maker of engineered aluminum products for cars, buildings and jet engines. In the three months ended September 30, 2018, Arconic’s earnings jumped 58.3%, to $163 million from $103 million a year earlier. Earnings per share gained 50.0%, to $0.33 from $0.22, on more shares outstanding. If you exclude unusual items, including charges related to the new U.S. tax laws, Arconic’s earnings per share rose 28.0%, to $0.32 from $0.25. Overall revenue in the quarter improved 8.9%, to $3.52 billion from $3.24…

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