4-Star Stocks Poised to Pop: Alcoa

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum giant Alcoa (NYS: 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.

Alcoa facts

Headquarters (Founded)New York (1888)
Market Cap$11.5 billion
IndustryAluminum
Trailing-12-Month Revenue$24.6 billion
ManagementCEO Dr. Klaus-Christian Kleinfeld (since 2008)
CFO Charles McLane, Jr. (since 2007)
Return on Equity (Average, Past 3 Years)(1%)
Cash/Debt$1.34 billion / $9.31 billion
Dividend Yield1.1%
Competitors

BHP Billiton (NYS: BHP)

Rio Tinto (NYS: RIO)

Vale (NYS: VALE)

Sources: Capital IQ (a division of Standard & Poor's) and 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.

What do you think about Alcoa, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackAlcoa?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.

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