Alcoa's (NYSE: AA ) earnings release on Monday primed the materials sector to surge higher on Tuesday based on some bullish comments made by the company. One beneficiary of the remark was rare-earth element standard bearer Molycorp (NASDAQOTH: MCPIQ ) . The stock has struggled all year, but has been fighting off of recent all-time lows as it looks to regain investor confidence.
In the video below, Fool.com contributor Doug Ehrman discusses the importance of the Alcoa news on Molycorp, the outlook for the company for the rest of the year, and what positions you may wish to take as the stock moves ahead.
Materials industries are traditionally known for their high barriers to entry, and the aluminum industry is no exception. Controlling about 15% of global production in this highly consolidated industry, Alcoa is in prime position to take advantage of growth that some expect will lead to total industry revenue approaching $160 billion by 2017. Based on this prospect and several other company-specific factors, Alcoa is certainly worth a closer look. For a Foolish investment perspective on this global giant simply click here now to get started.