Improving outlook should lift Alcoa

Article Excerpt

ALCOA CORP. $11 is still a buy. The company (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares o/s: 185.9 million; Market cap: $2.0 billion; Price-to-sales ratio: 0.2; No dividends paid; TSINetwork Rating: Extra Risk; is a leading producer of bauxite ore. It also operates refineries that convert bauxite into aluminum products. The stock continues to recover from its recent low of $5.16 on March 23, 2020, as more countries reopen their economies. In fact, Alcoa expects aluminum demand to pick up in the second half of 2020. China’s stimulus plan and new infrastructure spending should spur that gain. At the same time, Alcoa continues to close its older, less-efficient smelters. That should also help support aluminum prices. Alcoa is a buy. buy…

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