Alcoa Inc is going to start the
US earning season kickoff and will indicate the state of economy. For the last
2 year, company is facing dwindling earning due to glut in Aluminum market
price and lackluster demand from key sectors like auto and aerospace.
The share price of $9.9 is very attractive entry point for the value investor and investor may require to be invested for next 3 to 4 quarter to reap in the solid return.
The replacement market trend
indicates the revival of replacement cycle which will push the price of
commodity to a level which will add to company EBITA.
The base of the company is very
strong with very entrenched reach within the auto and aerospace industry. The
expected upturn of auto and aerospace industry post the slow and steady
recovery of US economy will act as fuel for the organization. Its advisable to
invest before they release their result post the trading day of 11th July 2016.
