Title: CEMEX S.A.B. de C.V. (CX): The Undervalued Bargain Stock with Strong Growth Potential
CEMEX S.A.B. de C.V. (NYSE:CX) has emerged as a great bargain stock that investors should consider. Despite its recent trading performance, the company’s underlying fundamentals and growth prospects make it an attractive investment opportunity.
With a beta value of 1.44, CEMEX has proven to be more volatile than the broader market. However, this volatility presents an opportunity for investors looking to capitalize on short-term price fluctuations. In the last trading session, the stock traded 7.28 million shares, indicating a strong investor interest.
Currently valued at $9.98 billion, CEMEX closed the last trade at $6.69 per share, representing a gain of $0.12 or 1.83% during that session. Although the stock is 9.87% off its 52-week high of $7.35, it remains 52.17% above the 52-week low of $3.20.
Analysts’ consensus view on CEMEX is that it is an overweight stock, with a recommendation rating of 2.30. Out of 22 analysts, 13 rate it as a buy, while 8 rate it as a hold. Only 1 analyst recommends it as overweight, with none suggesting a sell. The expected earnings per share for the stock is $0.19.
Although the stock has faced some downward pressure in the last five days, it gained 1.83% in the most recent trading session. On July 7, 2023, the stock reached its highest price of $6.69, representing a 6.04% increase. Year-to-date, CEMEX shares have shown strong growth of 65.19%, despite a 4.29% decline in the past five days.
CEMEX has outperformed the wider relevant industry, with the company’s shares gaining 52.74% in the past six months and a year-to-date growth rate of 94.44%, compared to the industry’s 16.80%. Furthermore, the company has increased its growth outlook for the 2023 fiscal year revenue. Analysts estimate a revenue growth of 216.70% for the current quarter and 5.60% for the following quarter. The revenue growth for the last financial year was estimated to be 8.10%.
Wall Street analysts have set a consensus price target for CEMEX at $7.52, indicating a potential 11.04% increase from current levels. The price target range varies from a low of $4.70 to a high of $9.50, suggesting a potential decline of 29.75% or a significant hike of 42.0% respectively.
CEMEX has a significant institutional holding, with 29.16% of shares held by institutions. Baillie Gifford and Company is the largest institutional holder with over 75.58 million shares, followed by FMR, LLC with over 50.0 million shares. These holdings represent 4.99% and 3.30% of the shares outstanding, respectively.
As the company prepares to release its next earnings report in August, investors remain eager for potential dividends despite CEMEX’s ongoing debt issue. While insiders own 0.00% of the company shares, the encouraging number of investors is testimony to the market’s confidence in CEMEX’s future prospects.
In conclusion, CEMEX S.A.B. de C.V. (CX) presents a compelling investment opportunity for those seeking an undervalued bargain stock with strong growth potential. The stock has shown resilience despite recent market volatilities, and analysts predict robust revenue growth. Investors should consider adding CEMEX to their portfolios for potential long-term gains.
