The recent positive earnings report from Ford (NYSE: F ) is yet another confirmation that the American auto industry is humming, growing, and offering a ray of hope to materials companies like Alcoa (NYSE: AA ) that have struggled for extended periods. When coupled with ongoing demand in China, Alcoa looks to have a brighter future than it could have claimed for years. With General Motors set to release earnings in early May, the time may be right to take a chance on Alcoa.
In the video below, Fool.com contributor Doug Ehrman discusses how the auto industry and global demand are benefiting the company, and looks at how investors can position themselves to capitalize of this brighter outlook.
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.