(C) Reuters. Cemex vs. U.S. Concrete: Which Infrastructure Stock is a Better Buy?
Cemex, S.A.B. de C.V. (CX), and U.S. Concrete (USCR) are two stocks that will likely benefit from the infrastructure package. Already, these stocks are rallying and seeing nice earnings growth but the passage of the bill could lead to even bigger gains.Congressional negotiations are ongoing over an infrastructure package. However, there was a big breakthrough last week as Senate moderates on both sides of the aisles came to an agreement that President Biden said he would sign.
It’s going to be a major catalyst for several cyclical and materials stocks. These stocks have had nice rallies over the past year, but they remain quite cheap on a valuation basis which means they have more upside.
Without further ado, let’s take a look at the following infrastructure stocks: Cemex, S.A.B. de C.V. (CX), and U.S. Concrete (USCR).
CX is one of the world’s top cement businesses. With a production capacity of nearly 80 million metric tons, CX is clearly a powerhouse in its industry. The company operates four subsidiaries across four continents. These subsidiaries produce, distribute, market, and sell cement, linker, aggregates, and ready-mix concrete. CX is also the globe’s top white cement producer.
CX has a forward P/E ratio of 12.14. This ratio is an indication that the stock is fairly priced or possibly even underpriced. CX has a beta of 1.26. This is a reasonable beta that indicates the stock probably won’t fluctuate too much should the market undulate. CX is currently priced at around $8.45. The stock’s 52-week high is $9.09. CX’s 52-week low is $2.61.
Cemex vs. U.S. Concrete: Which Infrastructure Stock is a Better Buy?
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