Why Jim Cramer Says Buy Alcoa (AA) Stock as It Comes Down

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says the Alcoa  (AA) that he is used to, one buffeted by commodity prices for aluminum, is going away, replaced by a highly sophisticated, proprietary form of material.

Alcoa announced Monday morning that it had added to its titanium holdings through the acquisition of German company TITAL. Cramer points out that titanium and aluminum are the two main ingredients to construct an airplane, and he explains that Alcoa is "moving up the food chain to be more proprietary."

Cramer adds that this is a particular proprietary technology that Alcoa is buying, as well as titanium, which is the other product other than aluminum that matters to companies such as Boeing  (BA) and Airbus.

Must Watch: Jim Cramer Says Alcoa Moving to Becoming More Proprietary

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cramer calls this a "product fill out" and a "brilliant move." He says Alcoa is stalled right now with the rest of the big industrials because of worldwide growth concerns, but he suggests buying the stock as it comes down.

TheStreet Ratings team also rates Alcoa 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."

AA Chart AA data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Component Stocks Rise After Trump Reverses Decision on ZTE

Component Stocks Rise After Trump Reverses Decision on ZTE