Why Alcoa Is Ready to Rebound

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 and see what CAPS investors are saying about the stock right now.

Alcoa facts

Headquarters (Founded)

New York (1888)

Market Cap

$9.0 billion

Industry

Aluminum

Trailing-12-Month Revenue

$23.7 billion

Management

Chairman/CEO Dr. Klaus-Christian Kleinfeld
CFO Charles McLane Jr.

Return on Equity (Average, Past 3 Years)

2.7%

Cash / Debt

$1.9 billion / $8.8 billion

Dividend Yield

1.4%

Competitors

Aluminum Corp. of China (NYSE: ACH  )
Century Aluminum
(NASDAQ: CENX  )

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

On CAPS, 93% of the 3,679 members who have rated Alcoa believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, NoblyNaive, succinctly summed up the Alcoa bull case for our community:

Aluminum manufacturers as a whole are looking for about a 9% bump in demand, which should impact profits favorably. U.S. commercial aerospace has huge backlog of aluminum planes to pump out and is ramping up production considerably. No hiccup in the recovery will stop this bump in AL demand. This stock price has sunk to the point that under anything better than incompetent management, it can only go up if the economy stays on track for 2013.

Of course, that short pitch doesn't even come close to telling the entire story for Alcoa. You're in luck, though. The Fool's brand-new premium report on Alcoa looks at all sides of one of the most compelling material plays in the market. You can grab your copy here, which comes with free updates for 12 months.

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


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