NEW YORK (TheStreet) -- Alcoa (AA) - Get Alcoa Corp. Report  is making a big bet to strengthen its jet engine segment while diversifying away from commodities with its plan to buy Germany's Tital.

The deal for Tital, announced Monday, brings Alcoa a specialist in titanium and aluminum structural castings for aircraft engines and airframes. Klaus Kleinfeld, Alcoa's chairman and CEO, told TheStreet's Jim Cramer during CNBC's "Squawk on the Street," "We're adding more titanium and bringing our commodity business down."

Alcoa shares are up less than 1% on the news. The stock is up 41% on the year to date, outpacing both the 7.7% gain in the S&P 500and the 3.3% gain in the Dow Jones Industrial Average

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Alcoa has been building on its aerospace expertise, in June buying Firth Rixson, a U.K.-based maker of jet-engine components for $3 billion. This was a great move for Alcoa at a time when it was battling a global slowdown in aluminum demand and weak pricing. Firth's position as the world’s largest supplier of seamless rings for aero-engines gave Alcoa an additional source of revenue with its rings and metal products business. 

Even before announcing the acquisition Alcoa had projected a 7% compounded annual growth rate through 2019 for commercial jets. The company sees nine-year production order book to return to 2013 delivery levels. Tital will help Alcoa exploit that growth, while at the same time helping it leverage its Firth deal.

So Alcoa is no longer just a play on aluminum, it becomes a manufacturer of titanium structural cast parts, selling to some of the world's largest jet engine companies. With Tital’s titanium revenue projected to grow 70% over the next five years, Alcoa now has a strong-performing asset, no matter how weak its aluminum business.

All told, this isn't the same Alcoa that was unceremoniously kicked out of the Dow Jones Industrial Average in September 2013. Alcoa has turned itself into a high-performance metals leader -- one that has attracted the attention of Ford (F) - Get Ford Motor Company Report and Boeing (BA) - Get Boeing Company Report , both of which have begun to use more aluminum in their vehicles and jets.

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TheStreet Ratings team rates ALCOA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALCOA INC (AA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

You can view the full analysis from the report here: AA Ratings Report

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. At the time of publication, the author held no positions in any of the stocks mentioned.