Why Alumina Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, aluminum producer Alumina (NYS: AWC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Alumina and see what CAPS investors are saying about the stock right now.

Alumina facts

Headquarters (founded)

Southbank, Australia (1970)

Market Cap

$2.4 billion

Industry

Aluminum

Trailing-12-Month Revenue

$200 thousand

Management

CEO John Bevan (since 2008)
CFO Chris Thiris (since 2011)

Return on Equity
(average, past 3 years)

1.3%

Cash / Debt

$38.5 million / $640.9 million

Dividend Yield

6.1%

Competitors

BHP Billiton (NYS: BHP)
Rio Tinto (NYS: RIO)
RUSAL


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

On CAPS, 95% of the 267 members who have rated Alumina believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, WilliamCrook2003, succinctly summed up the bull case for our community:

Alumina stock is a bargain at this share price and five years from now will have appreciated more than the S&P will have done. Aluminum stock piles will have become depleted in 2013 and production will have to be increased to make up for the shortfalls of this resource.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Alumina may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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

The article Why Alumina Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above, and neither does The Motley Fool. 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.

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