Alcoa (AA) Could Rip as Demand Absorbs Aluminum Oversupply - Cramer

While Alcoa (NYSE: AA) is no longer the unofficial kick-off to a quarterly earnings season, one market watcher thinks the bad reputation is undeserved.

Stock sage Jim Cramer noted that Alcoa is actually two companies wrapped-up into one. The first is an aluminum producer has been bogging Alcoa down as the company has no control over the commodity and prices have been low recently due to too much supply.

The production part of the company is on fire, Cramer noted. Aerospace in particular has been strong, with a backlog in the sector of about 10,000 planes. Commercial construction and heavy machinery have also been seeing increased demand, a boon for Alcoa and its products.

Cramer thinks that Alcoa should be trading higher and, once supply meets demand, that might just be the case. Shares of Alcoa are up 2.4 percent Thursday.

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