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.