2 Mining Plays on Earnings

It is not typical for an entire industry to move on the earnings announcement of a single company, but in the case of Alcoa (NYSE: AA  ) that is exactly what happened during this past Tuesday's trading session. As a result of the moves in the materials sector, two names have emerged as solid plays that offer diversified exposure and positive upside: Cliffs Natural Resources (NYSE: CLF  ) and Freeport-McMoRan (NYSE: FCX  ) . Each of these companies offers good exposure to the sector and looks attractive at current levels.

In the below video, Motley Fool contributor Doug Ehrman discusses the investment opportunity presented by these two names and how they might fit into your portfolio.

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.


Read/Post Comments (0) | Recommend This Article (3)

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: 2360316, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:37:41 AM

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