Dow Jones Review: Alcoa

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out Alcoa. This company is down around about 4% in 2012 compared with just a 5% or so gain for the Dow average as a whole. Alcoa is also somewhat tied to the global economy, which hasn't been great. John and David gave Alcoa an outperform versus the market, and so far the market is winning. The company is a leading aluminum producer, but falling prices have really put pressure on it and competitors like BHP Billiton and Rio Tinto. Alcoa continues to find ways to be more productive, but it's a tough job. And as companies like General Electric and Boeing start to do more design with ceramics and carbon fiber, there could be demand pressure coming in the future. It's a tough call. Even well-run companies can suffer in cyclical industries. John and David now think that this one might be an "underperform" going forward.

Alcoa isn't one of the biggest dividend payers in the Dow.If you're interested learning about some outstanding high-yielding companies, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1954953, ~/Articles/ArticleHandler.aspx, 9/17/2014 3:50:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement