1. CEMEX, S.A.B. de C.V. (NYSE:CX)
Average Analyst Price Target Upside: 45.10%
Number of Hedge Fund Holders: 22
CEMEX, S.A.B. de C.V. (NYSE:CX) is a Mexican multinational building materials company based in San Pedro, Nuevo León. It is recognized as one of the largest cement producers globally. It operates in over 50 countries with a diverse product range including cement, ready-mix concrete, and aggregates. It tops our list of the best construction stocks to buy according to analysts.
The company’s solutions are designed to meet the evolving needs of its customers, from sustainable building materials to advanced construction technologies. The company was founded in 1906 and over the years it has expanded through strategic partnerships and acquisitions.
On September 3, CEMEX (NYSE:CX) announced its acquisition of a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling firm within the Heim Group. The acquisition will complement its Regenera division, which focuses on providing circular solutions to prolong the life cycle of construction materials through their reuse in value-added products.
The recycling facility can process up to 400,000 tons of material annually, transforming it into repurposed aggregates for concrete production and reintegrating them into the construction sector.
Analysts have quite bullish sentiments on CEMEX (NYSE:CX) as it has been covered by 18 analysts and a majority of them maintain a Buy-equivalent rating on the company stock. Their average price target of $9.25 represents an upside of 45.10% to the company’s stock at current levels on September 25.
On August 21, The Fly reported that JP Morgan resumed coverage of the company with an Overweight rating and a price target of $8. Despite a generally bearish outlook on the U.S. construction materials sector, the analyst finds the company’s stock valuation to be “extremely attractive.” The firm views its recent divestments as a positive move, which would increase its exposure to less favorable emerging markets and strengthen its balance sheet.
On September 9, CEMEX (NYSE:CX) received a Buy rating from Barclays analyst Benjamin Theurer with a $9 price target.
While we acknowledge the potential of CEMEX, S.A.B. de C.V. (NYSE:CX) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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