5 Best Mid-Cap Stocks To Buy Now

4. Alcoa Corporation (NYSE:AA)

Market Cap as of October 14: $6.90 Billion

Number of Hedge Fund Holders: 39

Alcoa Corporation (NYSE:AA) is a leading American miner that produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and international markets. At the close of Q2 2022, 39 hedge funds were bullish on Alcoa Corporation (NYSE:AA) and held stakes worth $1.24 billion in the company.

On September 27, B. Riley analyst Lucas Pipes revised his price target on Alcoa Corporation (NYSE:AA) to $51 from $54 and reiterated a Neutral rating on the shares. On October 6, UBS analyst Andreas Bokkenheuser started coverage of Alcoa Corporation (NYSE:AA) with a $43 price target and a Neutral rating.

Alcoa Corporation (NYSE:AA) is trading cheaply relative to earnings and is also paying dividends. As of October 14, Alcoa Corporation (NYSE:AA) has a trailing twelve-month PE ratio of 7.96 and is offering a forward dividend yield of 1.04%. The company has a trailing twelve-month operating margin of 21.69% and has free cash flows of $1.15 billion. Alcoa Corporation (NYSE:AA) is a profitable and undervalued mid-cap stock to buy now.

As of June 30, Soroban Capital Partners is the top shareholder in Alcoa Corporation (NYSE:AA) and has stakes worth $234.54 million in the company.