Ford Revs Up Alcoa's Prospects


The recent positive earnings report from Ford is yet another confirmation that the American auto industry is humming, growing, and offering a ray of hope to materials companies like Alcoa that have struggled for extended periods. When coupled with ongoing demand in China, Alcoa looks to have a brighter future than it could have claimed for years. With General Motors set to release earnings in early May, the time may be right to take a chance on Alcoa.

In the video below, contributor Doug Ehrman discusses how the auto industry and global demand are benefiting the company, and looks at how investors can position themselves to capitalize of this brighter outlook.

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.

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Motley Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors. 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.

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