Aluminium is racing ahead of other industrial metals including steel (in some areas) in terms of end use. From swank constructions to spacecraft the light metal is finding a place in every sector in various forms. Yet the metal has been experiencing extreme volatility since the past one year. The scenario is slightly looking up in the recent times but there is still enough headspace for aluminium to make a turnaround. Overproduction from China adding to the global glut is simply not letting the prices go up.
Nevertheless, there are still few aluminium stocks which are worth investing in. These are:
As per analysts, Century Aluminum stands as the best bet now. The pure-play upstream primary aluminium producer has enough earning prospects.
Kaiser Aluminum is a downstream company. Despite the losses it recorded in 2015 and in last quarter there are possibilities that the company would surmount the difficulties. Going by its financials, Kaiser Aluminum boasts a strong balance sheet - $173 million of net debt squares up nicely to last year's EBITDA of $179 million and an equity value at current prices of about $1.5 billion.
Alcoa, though a 'complicated case' in the eyes of analysts, stands out as a good bet for the venturesome investors.
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The aluminium giant is all set for a split into upstream Alcoa and downstream Arconic companies very soon. It remains to be seen how well the two businesses deliver over the time and investors react to them based on which a much deeper insight can be gained.
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