10 Most Undervalued Stocks to Buy for Under $10

7. Cemex (NYSE:CX)  

Number of Hedge Fund Investors: 22  

Forward P/E Ratio as of October 8: 7.93  

Stock Price as of October 8: $6.07  

Cemex (NYSE:CX) is a global leader in building materials, with operations in more than 50 countries. Cemex (NYSE:CX)  produces cement, concrete, and aggregates used in construction projects worldwide. The company has a strong presence in the Americas, Europe, and Asia.

According to a report by Precedence Research, the global building materials market was valued at $1.35 trillion in 2024 and is expected to be worth around $2 trillion by 2034, at a CAGR of 4% from 2024 to 2034. As demand for infrastructure projects rises, particularly in emerging markets, Cemex (NYSE:CX) is positioned to benefit from long-term industry growth trends.

In Q2, Cemex (NYSE:CX) reported a 2% increase in EBITDA and a significant expansion of its EBITDA margin to the highest level since 2016. The company’s net sales remained flat compared to the same period last year, despite difficult weather conditions in key markets. Management attributed the strong results to the company’s effective commercial approach and growth strategy, which has enabled it to maintain a favorable price-to-cost dynamic.

Cemex (NYSE:CX) achieved several notable milestones during the quarter, including its second Investment Grade rating from Fitch Ratings and recognition as the top-scoring company in the World Benchmarking Alliance’s 2024 Climate and Energy Benchmark. The company’s free cash flow after maintenance expenditures was $252 million, and its growth investments accounted for 10% of total EBITDA. Cemex’s (NYSE:CX) Urbanization Solutions business also saw a 10% increase in EBITDA, while its European operations have nearly reached the company’s consolidated 2030 CO2 reduction target, six years ahead of schedule.

In terms of geographical performance, Cemex’s (NYSE:CX) Mexican operations reported a 6% increase in net sales and a 14% increase in EBITDA, with an EBITDA margin expanding to 32.9%. The company’s South, Central America, and Caribbean region reported a 3% increase in net sales and a 2% decline in EBITDA.

Furthermore, Cemex’s (NYSE:CX) valuation multiples suggest that the stock is undervalued compared to its peers. The company’s forward PE ratio of 7.93 is substantially below its sector median of 16.75. Analysts forecast that the company’s earnings will rise by an impressive 147.25% in the current year.