Why Kaiser Aluminum 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 products company Kaiser Aluminum has earned a respected four-star ranking.

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

Kaiserfacts

Headquarters (founded)

Foothill Ranch, Calif. (1946)

Market Cap

$1.2 billion

Industry

Aluminum

Trailing-12-Month Revenue

$1.4 billion

Management

Chairman/CEO Jack Hockema

CFO Daniel Rinkenberger

Return on Equity (average, past 3 years)

4.3%

Cash/Debt

$358.4 million / $385.0 million

Dividend Yield

1.9%

Competitors

Alcoa

Hydro Aluminum

Rio Tinto Alcan


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

On CAPS, 91% of the 317 members who have rated Kaiser believe the stock will outperform the S&P 500 going forward.

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

One of the best managed (if not the best managed) companies in the sector. Aluminum manufacturers as a whole are looking for about a 9% bump in demand, which should impact profits favorably. U.S. commercial aerospace ... has huge backlog of aluminum planes to pump out and is ramping up production considerably. No hiccup in the recovery will stop this bump in AL demand.

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

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

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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