Alcoa Inc. (NYSE:AA) Positive Outlook and Performance

Second Quarter 2014 Profits

Lightweight metal and alloys manufacturing giant Alcoa Inc. (NYSE:AA) today announced that profits increased in the second quarter as the Company’s portfolio transformation continues an upward trend. Alcoa is leaving no stone unturned to serve the light weight metal industries such as automotive and aerospace, while keeping the market competitive for same. According to the company’s CEO, Klaus Kleinfeld, the Alcoa transformation towards light weight metals industry is in high momentum and strategies towards the same are keeping the shareholder value sustainable.

Quarterly Dividends

The Board of Directors has declared the dividends to be paid to the shareholders. The shareholders on record would gain on common stock dividend of 3 cents per share payable on 15 August, 2014 as per business close on 8 August, 2014. A quarterly dividend of 93.75 cents per share would be paid to the shareholders on record on 1 October, 2014 at the close of business in 12 September, 2014.

The Gartman Guess

Television stock analyst, Gartman, said on CNBC that Aluminum stocks are best bet in the future. Gartman theory is that strict fuel efficiency rules from the U.S government would need the automobile industry to produce lighter and more fuel efficient cars.  In order to adhere to the U.S rules, the efficiency of the U.S cars on average are predicted to grow up from 29 miles per gallon to 54.5 miles per gallon by the year 2025. Aluminum, a light weight metal does help in this transformation process to develop light weight cars and more efficient engines. Alcoa Inc. (NYSE:AA) is placing itself at a vantage point to deliver light weight metals in both automotive and aerospace industry. Gartman predicts the Alcoa stock would hit $40 in the recent future.

TheStreet Rating

Analysts at the TheStreet give a buy rating to the Alcoa stock with a rating score of B-. Alcoa Inc. (NYSE:AA) shares rose to a 52 week high of $17.15 as on Tuesday 22 July, 2014. Such an upward movement arises from company’s strengths seen in stock performance, earnings per share, cash flow and increase in net income. Analysts believe the strengths outweigh minor disappointing equity returns. The company saw strong earnings growth of 209.09% and its stock has surged by 99.38% over the past year and thus has almost doubled.

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