Among the Zacks Rank #1 (Strong Buy) list, Alcoa Corporation AA and Kinder Morgan KMI are two stocks to keep an eye on ahead of their Q4 reports on Wednesday, January 22.

To that point, the strong price performances of these highly ranked stocks could continue with Alcoa and Kinder Morgan shares up +80% and +40% in the last year respectively.   

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Alcoa Q4 Expectations

As a global leader in the production of bauxite and aluminum products, Alcoa’s Q4 sales are thought to have spiked 30% to $3.38 billion compared to $2.6 billion in the prior year quarter. Even better, Q4 earnings are expected to climb swing to $0.91 per share versus an adjusted EPS loss of -$0.56 a year ago.

Alcoa is slated to round out fiscal 2024 with total sales increasing 11% to $11.76 billion. More importantly, annual earnings are expected to soar to $0.94 per share versus an adjusted loss of -$2.27 a share in 2023.  

Kinder Morgan Q4 Expectations

Pivoting to Kinder Morgan, a leader in midstream energy infrastructure, Q4 sales are expected to increase 3% to $4.16 billion. Furthermore, Q4 EPS is expected at $0.33 compared to $0.28 per share in the comparative quarter.

Annual earnings are slated to increase 9% to $1.17 per share despite total sales forecast of $15.27 billion versus $15.33 billion in 2023.

FY25 Outlook & EPS Revisions

Suggesting Alcoa and Kinder Morgan could offer positive guidance during their Q4 reports is their FY25 projections. 

Based on Zacks estimates, Alcoa’s total sales are projected to expand another 9% this year to $12.87 billion. Better still, FY25 EPS is expected to soar over 350% to $4.27. It’s also noteworthy that over the last 60 days, FY24 EPS estimates are up 4% while FY25 estimates have climbed more than 40%.

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As for Kinder Morgan, its top line is forecasted to rebound and rise 5% this year with FY25 sales projections at $15.99 billion. Plus, Kinder Morgan’s annual earnings are projected to increase another 5% in FY25 to $1.23 per share.

Over the last 60 days, earnings estimate revisions for FY24 have remained unchanged although FY25 EPS estimates are slightly up.

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Bottom Line

Considering their increased profitability, now appears to be an ideal time to buy Alcoa Corporation and Kinder Morgan stock with both shaping up to be viable investments for 2025 and beyond.

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