4-Star Stocks Poised to Pop: Alcoa

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

$9.0 billion



Trailing-12-Month Revenue

$25.0 billion


CEO Klaus-Christian Kleinfeld (since 2008)
CFO Charles McLane Jr. (since 2007)

Return on Equity (average, past 3 years)



$1.8 billion / $9.7 billion

Dividend Yield



Aluminum Corporation of China
Rio Tinto Alcan

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 3,640 members who have rated Alcoa believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, All-Star buffalonate, touched on the long-term trends working in Alcoa's favor:

I believe this company is a great bargain right now. ... Light-weighting cars for better gas mileage will require much greater use of aluminum going forward. Also the aviation industry is growing rapidly worldwide which means aluminum will be in high demand to make the planes for a long time. Just look at Boeing's plane backlog and that should tell you that Alcoa's future is bright.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Alcoa may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle 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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