4-Star Stocks Poised to Pop: Alcoa

Based on the aggregated intelligence of 180,000-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

Headquarters (founded) New York (1888)
Market Cap $9.9 billion
Industry Aluminum
Trailing-12-Month Revenue $24.4 billion
Management Chairman/CEO Dr. Klaus-Christian Kleinfeld
CFO Charles McLane, Jr.
Return on Equity (average, past 3 years) 2.1%
Cash/Debt $1.7 billion / $9.5 billion
Dividend Yield 1.3%
Competitors Aluminum Corporation of China
Rio Tinto Alcan
RUSAL

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 3,655 members who have rated Alcoa believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star buffalonate, touched on the tailwinds working in Alcoa's favor:

I believe this company is a great bargain right now. ... Light-weighting cars for better gas mileage will require much greater use of aluminum going forward. Also the aviation industry is growing rapidly worldwide which means aluminum will be in high demand to make the planes for a long time. Just look at Boeing's plane backlog and that should tell you that Alcoa's future is bright.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Alcoa may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.


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  • Report this Comment On September 22, 2012, at 1:15 PM, ouruaw wrote:

    AA will lead the way as CNG becomes the number 1

    energy to run Autos Boats Trucks and replace dirty Gasoline

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