NEW YORK ( TheStreet) -- The challenge imposed by the tough economic climate has served as a disruption for even the most fundamentally sound businesses.This reality makes it difficult to have anything but a dismal outlook for companies like Alcoa ( AA) that are in economically sensitive businesses such as aluminum. By and large, this has been what has kept investors at bay although Alcoa's stock remains undervalued from its true long-term potential. There's no question the stock will soon rebound because the economy is showing signs of improvement, albeit slowly. But I wonder, how long should investors wait and will the patience pay off?
While forecasting demand growth of 6% over the next several quarters, Alcoa expects other areas of its business to see significant improvements. These include gas turbine markets, food packaging and commercial transportation. Likewise, there are also plenty of growth opportunities in areas such as appliances where names including General Electric ( GE) might become significant consumers of aluminum. Alcoa stands to benefit immensely once the market rebounds.