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, 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.

Motley Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.