Why Alcoa, Encana, and Penn National Gaming Jumped Today
The stock market again was relatively calm on Wednesday, failing to react to Tuesday night's Senate vote to approve the tax bill and President Trump's signature Wednesday to enact the measure into law. Tax cuts for corporations could mean big earnings boosts for many companies, but major benchmarks didn't make any abrupt movements, reflecting the widespread belief before the formal vote that passage was almost certain. Although the broader market finished little changed, some companies saw their shares rise on positive news. Alcoa (NYSE: AA), Encana (NYSE: ECA), and Penn National Gaming (NASDAQ: PENN) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Shares of Alcoa climbed 6% after getting a positive review from a major stock analyst. Credit Suisse upgraded shares of the aluminum and light-metals specialist from neutral to outperform, with a $19 boost to its target price on Alcoa to $61 per share. Many see the fundamental characteristics for the aluminum market improving in 2018, with oversupply problems easing and a big uptick in demand likely. A potential infrastructure package could also help to bolster the company's prospects by increasing the use of various lightweight metals in anticipated construction projects. Alcoa has already seen substantial share-price gains in anticipation of such a move, so it remains to be seen how much more the stock could rise even if those projects materialize.
Image source: Alcoa.
Source: Fool.com
