10 Worst Affordable Stocks Under $10

6. CEMEX, S.A.B. de C.V. (NYSE:CX)

Share Price: $6.44

Forward P/E Ratio: 8 

Earnings Growth This Year: 575.00% 

Number of Hedge Fund Holders: 22 

CEMEX, S.A.B. de C.V. (NYSE:CX) is one of the largest suppliers of cement in Latin America. The company sells a range of basic building materials to the native Mexico market, the United States, and internationally. It has operations in more than 50 countries.

The strategic edge of the company lies in its special focus on sustainability. The company has pledged to reduce its carbon dioxide emissions by 40% by 2030. This strategic focus has turned out to be one of the differentiating factors, especially with the current hype for sustainable and climate-friendly industries. Management and analysts alike expect that the sustainability motto of CEMEX, S.A.B. de C.V. (NYSE:CX) will help it win crucial government contracts as governments around the world are struggling to balance the growing need for construction with climate priorities.

The company in its second quarter 2024 results highlighted that it has been facing some challenges from the weather conditions, which resulted in flat net sales during the quarter. However, it was still able to increase its EBITDA by 2%, marking the 6th consecutive quarter of growth, with the highest EBITDA margin in 8 years.

The growth was due to management’s strategic focus on investments. It has more than 400 ongoing projects out of which 299 have been completed. These growth investments contributed around 10% to the overall earnings of the company.

Although CEMEX, S.A.B. de C.V. (NYSE:CX) ranks as one of the worst affordable stocks under $10, the figures and investment case discussed above point towards improved prospects of growth for the company.