Six Ways to Invest in Aluminum: The Most Abundant Metal in the World

Includes: AA, ACH, AL (defunct), CENX, KALU, NX
by: Stockerblog

Monday, September 10, 2007 Aluminum Stocks: the most abundant metal in the world

Aluminum is used in the following industries:

  • Aerospace
  • Cars, trucks, trains, planes, ships
  • CD's
  • Cookware
  • Doors, siding, window frames
  • Cans and cooking foil
  • Electrical transmission lines
  • Fireworks
  • Heat sinks
  • Knives and swords
  • Magnets
  • Paint
  • Water treatment
  • Here is a wrap-up of aluminum stocks worth looking at. All of the following have market caps in excess of $600 million.

  • Alcan, Inc. (NYSE:AL), is the second largest aluminum company in the world by sales. It is also the largest aluminum company in Canada. The Canadian Competition Bureau recently approved the friendly takeover of the company by Rio Tinto (RTP). The stock has a P/E of 19.4, a PEG of 1.06, and a small yield of 0.8%.
  • Alcoa Inc. (NYSE:AA), is the third largest aluminum producer in the world. The stock has a P/E of 13.14, a PEG of 1.04, and a decent yield of 2%.
  • Aluminum Corp. of China Ltd. (NYSE:ACH), is involved in the production and marketing of alumina, and aluminum in China. The stock has a P/E of 4.79, a PEG of 1.44, and a high yield of 4.5%.
  • Century Aluminum Co. (NASDAQ:CENX), is a Monterrey, California-based company which is a producer of aluminum in North America. It has a P/E of 28.18, and a PEG of 0.91.
  • Quanex Corp. (NYSE:NX), has an aluminum sheet building products division, and makes vehicle and building products. The stock has a P/E of 11.93, a PEG of 0.81, and a yield of 1.3%.
  • Kaiser Aluminum Corp. (NASDAQ:KALU), is a California-based producer of fabricated aluminum products, that has been in business since 1946. The stock has a forward P/E of 12.81, a PEG of 0.83, and a yield of 0.3%.
  • Tredegar Corp. (NYSE:TG), is a Richmond, Virginia-based company which produces aluminum extrusions uthat are used for numerous types of personal, and household care products. The stock has a P/E of 16.13, and a yield of 0.9%.
  • Disclosure: The author does not own any of the above.