No. 5: Alcoa
Q3 Return: +1%
YTD Return: +2%
Investor: Jeff Reeves
It’s been an up-and-down year, but Alcoa (NYSE:AA) could be perfectly poised for a fourth-quarter run to shake up the standings. The company broke into the top five with a two-spot gain over the last three months.
It hasn’t necessarily been pretty, though. Even recently, Alcoa has struggled, facing an 18% drop in “realized prices” during Q2 for a whopping 50% price drop over the past year.
But, as InvestorPlace Editor Jeff Reeves told us, investors already have baked in the low prices for aluminum — and they have low expectations for the company. Plus, the current low prices also confirm his original thesis: Aluminum prices and demand have no where to go but up.
All of it could mean the perfect storm for Alcoa — unless the usual woes of the global economy that FedEx warned about prove Reeves’ prediction wrong.
Disclosure: Jeff Reeves owns a personal position in Alcoa stock.