NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Alcoa (AA - Get Report) is the most important stock for trying to figure out the economy, and the aluminum producer plans to report earnings on Tuesday, July 8.
Cramer says many investors will focus on Alcoa's recent acquisition of jet engine components manufacturer Firth Rixson. This could put Alcoa in a similar situation to Timken, which split into a specialty division and basic division and brought out tremendous value. But Cramer does not think Alcoa CEO Klaus Kleinfeld will talk about this.
Instead, he thinks Kleinfeld will discuss the uptick in different areas of his business, such as trucks, non-residential construction and aerospace, about which Kleinfeld has already been bullish. Cramer also wants to hear what he says about China, which had stalled but could be coming back online.
He also wants to hear Kleinfeld's comments on autos, particularly because of Ford's (F - Get Report) recent switch to lightweight aluminum from steel for the outside of its F150 trucks. Cramer suggests investors watch Alcoa and its different divisions for Klienfeld's outlook.
TheStreet Ratings team rates ALCOA INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCOA INC (AA) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
- You can view the full analysis from the report here: AA Ratings Report