Ford And Toyota Are Reasons Why Alcoa Might Be A Buy
Apr 4th 2013 2:17PM
Updated Apr 4th 2013 2:20PM
In this video, Motley Fool analyst Taylor Muckerman outlines three reasons to buy Alcoa . First, there is a rebound in the global economy, particularly in China and, to a lesser extent, the United States. Demand for aircraft, autos, and truck trailers are projected to drive aluminum demand. Second, Alcoa is actively restructuring its business and pursuing other means of reducing its costs. Lastly, Alcoa is set on maintaining its investor grade credit rating which means that it can expand its business through the debt market at attractive rates if it chooses.
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.
The article Ford And Toyota Are Reasons Why Alcoa Might Be A Buy originally appeared on Fool.com.Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Ford. 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.