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Should Value Investors Buy Cemex (CX) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Cemex (CX - Free Report) . CX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.60 right now. For comparison, its industry sports an average P/E of 13.57. Over the last 12 months, CX's Forward P/E has been as high as 14.48 and as low as 4.93, with a median of 8.40.

Investors should also note that CX holds a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CX's PEG compares to its industry's average PEG of 1.06. CX's PEG has been as high as 0.81 and as low as 0.18, with a median of 0.31, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cemex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CX feels like a great value stock at the moment.


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