By
Brian D. Pacampara
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More Articles
October 12, 2009
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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum giant Alcoa (NYSE: AA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Alcoa's business and see what CAPS investors are saying about the stock right now.
Alcoa facts
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Headquarters (Founded)
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Pittsburgh (1888)
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Market Cap
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$13.9 billion
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Industry
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Metals and mining
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Trailing-12-Month Revenue
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$18.7 billion
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Management
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CEO Dr. Klaus Kleinfeld (since 2008)
CFO Charles McLane, Jr. (since 2007)
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Return on Equity (Average, Past 3 Years)
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5.2%
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Cash / Debt
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$1.1 billion / $10.1 billion
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Competitors
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Aluminum Corp. of China (NYSE: ACH )
Century Aluminum (Nasdaq: CENX )
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CAPS Members Bullish on AA Also Bullish on
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Apple (Nasdaq: AAPL )
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CAPS Members Bearish on AA Also Bearish on
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Ford Motor (NYSE: F )
Citigroup (NYSE: C )
Bank of America (NYSE: BAC )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.2% of the 948 All-Star members who have rated Alcoa believe the stock will outperform the S&P 500 going forward. These All-Star bulls include 00100 and CaptBS, both of whom are ranked in the top 10% of our community.
Just last week, 00100 singled out Alcoa as a classic case in contrarianism:
Negative cash flow. Low 5 year growth rate. Ok quick ratio and debt ratio. Idling production resources until demand recovers. They'll make it.
In an earlier pitch, CaptBS also sees a shiny future for the stock:
Once a $40 stock, this is an easy long-term recovery pick. Right now, aluminum demand is relatively low and inventories are generally overstocked, but if you take a look at the stimulus package, most of the actual construction/infrastructure work that it covers is due to start in 2010. With an increased emphasis on lighter-weight, environmentally friendly materials (especially in the transportation sector), aluminum demand should pick up significantly when these projects get the green light and as the broader economy recovers.
What do you think about Alcoa, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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