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Alcoa Earnings Will Ride Rising Aluminum Demand: Strategist

Alcoa is one of the first Dow components to report second-quarter earnings and gives some sort of indication on how the economy is doing, Brian Stutland of Stutland Equities, told CNBC in an interview.

AA Earnings Trade

"You have people mining material, they sell to the basic materials [companies] like Alcoa, like a Dow Chemical , who then in turn sell to the manufacturer, who then in turn sell to the consumer. So certainly there is a huge demand coming out of these basic-material type stocks," Stutland said.

He adds that the chain of command demonstrates a boost on higher global aluminum demand.

"Analysts are expecting about 34 cents a share, that should be a huge increase from last quarter, about 160 percent gain in net income. I would definitely be a buyer here. It's trading at 22 times earnings P/E," Stutland said.

He added that commodities are also "looking great" and that he expects earnings to exceed. "Analysts are expecting about a 15 percent gain in Exxon Mobil , Chevron about 35 percent gain in net income...They're trading very cheap compared to the type of growth that they're getting," Stutland told CNBC.

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Disclosure information was not available for Brian Stutland or his company.