Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum giant Alcoa (NYSE: AA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Alcoa's business and see what CAPS investors are saying about the stock right now.
||New York (1888)
||CEO Dr. Klaus-Christian Kleinfeld (since 2008)
CFO Charles McLane, Jr. (since 2007)
|Return on Equity (Average, Past 3 Years)
||$1.34 billion / $9.31 billion
BHP Billiton (NYSE: BHP )
Rio Tinto (NYSE: RIO )
Vale (NYSE: VALE )
Sources: S&P Capital IQ, Motley Fool CAPS.
On CAPS, 94% of the 3,463 members who have rated Alcoa believe the stock will outperform the S&P 500 going forward. These bulls include piranha60565 and dougherty7.
Late in September, piranha60565 tapped the stock as a solid turnaround opportunity: "Aluminum is making a comeback and [Alcoa] will benefit the most. Competition in China is tough but I trust their management and experience."
Over the next five years, in fact, Alcoa is expected to grow its bottom line at a brisk rate of 37% annually. That's much faster than competitors like BHP (16%), Rio Tinto (9%), and Vale (7%).
CAPS member dougherty7 expands on the big trend working in Alcoa's favor:
I expect aluminum to become increasingly important to automakers. Fuel economy regulations are set to ramp up aggressively over the next 10-20 years. When tweaking the engine leaves a car short of the industry requirement, the automaker will have no choice but to save weight. Aluminum's strength and lightness will make it a crucial part of every car.
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