I think this makes Alcoa Corporation (NYSE: AA) a brilliant buy for the next 10 years. This US stock is one of the 10 biggest aluminium producers on the planet. Alcoa also set up a joint venture to enter the high-purity alumina market to meet increasing demand for sustainable products too. Applications here include the manufacture of lithium-ion batteries for EVs.

Alcoa may not have to wait long to receive a big profits bump either. Aluminium prices have just hit their highest since 2008 due to coronavirus-related production stoppages in China. Analysts are expecting material shortages to worsen considerably on the back of these stoppages too.

ING Bank for one now expects an aluminium deficit of 1.7m tonnes in 2022, up 200,000 tonnes from predictions of just a few months ago. The shortfall could get much worse too as Covid-19 problems worsen in China, the world’s number one aluminium producer.

Today, Alcoa trades on a forward price-to-earnings (P/E) ratio of 9.4 times. This sits below the well-regarded value benchmark of 10 times. I think the company’s a top buy even though demand could slump if China’s economy sharply cools.

Another of the best cheap stocks to buy right now!

Residential Secure Income (LSE: RESI) is a stock that’s closer to home that I’m also considering buying. I like this particular UK share because it offers plenty of all-round value right now. The commercial landlord trades on a forward price-to-earnings growth (PEG) multiple of 0.8. This is below the benchmark of 1 that suggests a stock could be undervalued.

Meanwhile, Residential Secure Income offers big dividend yields, thanks to its status as a real estate investment trust (REIT). This classification means at least 90% of the company’s annual profits must be paid out in the form of dividends. And it means this property stock’s yield sits at a big 4.8% today.

Profits are leaping at Residential Secure Income because the UK has a huge shortage of rental properties. This is, in turn, pushing private rents through the roof. In fact, the average rent has just reached its highest for 13 years and looks set to keep growing.

It will take years for the country’s rental homes shortage to be properly addressed, meaning tenant costs should continue rising for some time. But this is not the only reason I like Residential Secure Income today. I also reckon its exposure to the shared ownership and retirement housing sectors should pay off handsomely.

I’d buy this cheap UK share even though rising interest rates could damage demand for its properties from homebuyers.

In particular, concerns over smelter shutdowns in China are fanning fears over dwindling supply. Production has been closed as major aluminium-producing provinces in the country struggle to curb their carbon emissions. This is a story that could provide long-term support to metal prices as Beijing grapples to meet emissions targets. In addition, prolonged political strife in key aluminium producer Guinea could also keep prices strong.

A cheap US share to ride the aluminium boom

All this bodes well for bauxite, alumina, and aluminium company Alcoa Corporation (NYSE: AA), one of the biggest aluminium producers on the planet. Soaring prices of the commodity drove revenues at the US miner 63% higher in the three months to June. Though soaring aluminium values aren’t the only reason why Alcoa’s top line is rocketing. Production across all three of its business segments remains strong, and in the last quarter alumina output hit near-record levels.

Alcoa has plans to hike production at its Western Australian assets to keep the bottom line rising over the long term too.

Threats to Alcoa’s profits

There are significant risks to Alcoa’s top and bottom lines, naturally. Robust aluminium prices could lead to a raft of new production capacity from other mining companies entering the market. The subsequent supply rise could in turn weigh heavily on metal prices.

Furthermore, profits at Alcoa could suffer in the short-to-medium term if a sharp slowdown in the economic recovery materialises. The latest industrial production data coming out of China was particularly concerning. This showed factory output rise 6.4% in July, slumping from growth of 8.3% in June and the fifth straight monthly decline.

7.9% dividend yields!

That being said, I think these threats could be baked into Alcoa’s share price at current levels. City analysts think the US mining stock will bounce into the black in 2021 as commodity demand recovers from last year’s subdued levels. Earnings per share of around 505 US cents are anticipated. Consequently Alcoa trades on a forward price-to-earnings (P/E) ratio of just 9 times.

An added bonus is that Alcoa also packs plenty of punch from an income perspective. City brokers think the aluminium ace will start paying dividends from this year after failing to pay out at all in 2020, 2019, and 2018. Forecasters are predicting total payouts of 1.9 US cents and 3.8 US cents per share this year and next respectively.

As a result Alcoa’s meaty 4% yield for 2021 marches to an eye-popping 7.9% for next year. Alcoa clearly isn’t without its share of risk. But at current prices of $46.40 per share I think this US share could be too cheap for me to miss.

A top UK banking share

British bank shares like FTSE 100 giants Lloyds or Barclays are popular among many investors because of their big dividend yields. The figures for these particular two sit at a handsome 5% and 4%, respectively. But I’d much rather spend my hard-earned cash on Bank of Georgia Group (LSE: BGEO) shares instead.

This isn’t just because this cheap UK share’s dividend yields sit at a superior 5.3% for 2021. It’s due to the bright outlook for the Georgian economy which (beyond this year at least) looks far better than that of the British one. In this environment, Bank of Georgia’s much more likely to generate better profits growth than the FTSE 100 firms.

What’s more, banking industry penetration in the eurasian country is extremely low versus here in the UK. And Bank of Georgia is the nation’s second-biggest bank, giving it the clout to exploit this opportunity. The FTSE 250 firm’s market share sits at a huge 40% and 37% in the retail banking and corporate and investment banking fields, respectively. Furthermore, the company has invested huge amounts in the fast-growing fields of digital banking and mobile money to keep growing its customer base too.

These qualities all give Bank of Georgia excellent growth possibilities over the long term. However, I will keep in mind that low interest rates pose a risk to its profit margins. Rock-bottom central bank rates reduce the difference between what banks can charge borrowers and give to savers.

A US share on my radar

I’m also casting my net outside of the London Stock Exchange in an effort to make great returns from my investment portfolio. And one cheap US share that’s on my radar today is Alcoa Corporation (NYSE: AA). This particular stock trades on an ultra-low forward P/E ratio of 9 times. Moreover, its 4.2% dividend yield for 2020 beats the forward average of many other US and British stocks.

This US stock makes bauxite, alumina, and aluminium. Indeed, in 2020 it was the sixth-largest aluminium producer on the globe. Prices of the lightweight metal just hit their most expensive for 10 years above $2,700 per tonne at the London Metal Exchange. I think they could continue rising as the economic recovery plays out. Further, aluminium plants in China are shuttered as the country struggles to meet its climate targets. The aluminium-smelting process requires vast amounts of electricity.

Alcoa’s fortunes are tied closely to the condition of the broader global economy. And so its outlook for the short-to-medium term remains pretty uncertain as the number of Covid-19 cases spike across many parts of the planet. Still, I think this threat is reflected in Alcoa’s low earnings multiple.