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Should Value Investors Buy Cemex (CX) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Cemex (CX - Free Report) . CX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.72, while its industry has an average P/E of 31.02. CX's Forward P/E has been as high as 79.63 and as low as 5.96, with a median of 17.79, all within the past year.

Investors should also recognize that CX has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.59. Over the past year, CX's P/B has been as high as 1.12 and as low as 0.23, with a median of 0.49.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CX has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.27.

These are only a few of the key metrics included in Cemex's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CX looks like an impressive value stock at the moment.


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