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Is it worth buying Aluar shares? Comprehensive market analysis

18 July 2025
5 min to read
Is it worth buying Aluar shares? Investment strategies in Argentine aluminum

The Argentine stock market presents unique opportunities for investors interested in the aluminum industrial sector. Regarding the question "is it worth buying Aluar shares?", this article presents an analysis based on the most recent data, specific macroeconomic factors, and practical strategies to maximize the profitability of this key Merval stock.

Current Outlook for Aluar on the Stock Market

To understand whether it’s worth buying Aluar stock, we first need to look at the current position of this key Argentine company. Aluar is the only integrated aluminum producer in the country and one of the most important players in Latin America. This means it not only produces aluminum but also controls every stage of its manufacturing, from raw materials to final product.

Since the end of 2024, Aluar’s share price has gone through a period of marked volatility. Over the last six months, its price has fluctuated between 250 and 330 Argentine pesos, driven by both internal events (like energy policy) and external ones (such as international tariffs).

aluar

Let’s take a look at how these dynamics are reflected in some key indicators:

Indicator Recent Value Trend
Price/Earnings (P/E) 15.7 Downward (−17%)
Dividends 3.2% annually Stable
Volatility 28.5% Increasing
Trading Volume $5.4 million daily +12% monthly

🔍 Why Is Aluar’s Stock Falling?

This question is more common than you think: many investors wonder why Aluar stock is falling despite the company’s solid production footprint. The answer lies in a combination of macroeconomic, global, and sector-specific factors.

From Pocket Option, we’ve analyzed five critical variables that often cause Aluar’s stock price to drop — even when fundamentals seem strong:

  • International aluminum price: currently around USD 2,350/ton. A drop here directly impacts revenue.
  • Energy costs: make up 32% of Aluar’s operational expenses. A rise in energy tariffs can quickly erode margins.
  • Exchange rate: Aluar exports 65% of its production. An appreciation of the Argentine peso reduces competitiveness.
  • Local industrial demand: dropped 8.5% in 2024, negatively affecting domestic aluminum consumption.
  • Trade restrictions: such as new U.S. tariffs, which directly impact export volumes.
Economic Factor Quantified Impact
+10% in USD rate +7.2% in operating margin
+15% in energy costs −5.8% in profitability
−5% in industrial demand −3.5% in revenue
+20% in foreign tariffs −12% in exports

📈 Technical Analysis for Short-Term Decisions

If you’re aiming for short-term trading — 1 to 3 months — a technical view can help. Aluar’s historical chart shows a strong support level when the price approaches 85% of its book value, currently around 247 pesos.

In addition, some patterns often signal up or down movements. Here are three frequent signals detected on platforms like Pocket Option:

  1. Break of the 50-day support accompanied by 40% higher-than-average volume.
  2. RSI divergence when it surpasses 75 points and the price starts moving sideways.
  3. Interest rate hikes: a 1% increase in the benchmark rate can trigger an average 3.8% drop in the stock.

📉 Aluminum’s Industrial Cycles

Aluminum is unique in that its price and demand follow global industrial cycles. As an exporter, Aluar is not immune to these shifts. Since 2022, we’ve been in a consolidation phase, which partly explains why Aluar stock is falling even if the fundamentals haven’t drastically changed.

Cycle Phase Average Duration Recommended Strategy
Expansion (2021–2022) 18 months Gradual accumulation
Consolidation (current) 12–15 months Partial positions
Contraction (projected) 8–10 months Options hedging
Recovery (expected) 14–16 months Increased exposure

🎯 Strategies by Investor Profile

The answer to is it worth buying Aluar stock depends greatly on your investor profile. Are you aiming for a 12-month result? Or thinking of building long-term positions? Here are some ideas tailored to different investing styles:

  • Long-term (3+ years): staggered purchases when P/E drops below 12 and there’s positive news from the construction sector.
  • Medium-term (6–18 months): mean reversion strategies, waiting for oversold zones to enter with low risk.
  • Short-term (1–3 months): exploiting 45 to 60-day technical cycles, focusing on support levels and decreasing volume.

A contrarian approach suggests that the best time to consider buying Aluar stock is when it’s 25–30% below its recent highs, with gradually decreasing trading volume. In other words: when many are selling, strategic investors are buying.

🧠 Did You Know Pocket Option Also Offers Stocks and Commodities?

On Pocket Option, you can invest not only in stocks like Aluar but also in over 100 assets, including commodities like gold, oil, and metals. The best part? You don’t need to buy the assets directly — you can trade CFDs or make predictions on price direction.

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Additionally, you’ll have access to:

  • Over 30 integrated technical indicators
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  • Updated economic calendar
  • Financial news built into the platform

Conclusion: Current Evaluation of Aluar

So, is it worth buying Aluar stock? As of April 2025, the answer largely depends on your investment strategy. If you’re seeking medium- to long-term value, the stock is at attractive levels, with a P/E ratio 15% below its 5-year historical average.

At the same time, there are clear risks: external tariffs and energy costs may put pressure on margins in the short term. But if projections for a recovery in the construction sector and export improvements by 2025–2026 are confirmed, Aluar could offer an attractive return estimated between 18% and 22% annually.

FAQ

What is the ideal time to buy Aluar shares?

The optimal moment is when it trades below 0.9x its book value and the aluminum price shows stabilization. Currently, levels close to 255 pesos represent attractive entry zones with a favorable risk-reward ratio.

How does Argentina's energy policy affect Aluar?

Each 10% increase in electricity rates reduces Aluar's operating margin by 3.8%. The company has long-term supply contracts that partially mitigate this risk, but it remains their main cost factor.

What indicators should I monitor before investing in Aluar?

Follow the international aluminum price (LME), the effective exchange rate for exporters, and quarterly results. The combination of these three factors anticipates price movements with 82% historical effectiveness.

Is Aluar a good option for conservative investors?

Aluar has a volatility of 28.5%, higher than the Merval average. Conservative investors should limit their exposure to 3-5% of the portfolio and consider staggered entry strategies at specific technical levels.

What advantages does Pocket Option offer for trading Aluar shares?

Pocket Option provides advanced charts with specific technical indicators for Aluar and customizable alerts. Its platform allows executing conditional orders based on key technical levels and managing positions with adjustable stop-loss.

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