Analysts at HSBC Securities cut their rating on shares of CEMEX, S.A.B. de C.V. (NYSE:CX) from Buy to Hold in their opinion released on August 16. Exane BNP Paribas analysts have downgraded their rating of CX stock from Outperform to Neutral in a separate flash note to investors on July 31. Analysts at Longbow downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to April 27.
By watching the trading activity of corporate insiders, it will become easier to get a sense of CEMEX, S.A.B. de C.V. (NYSE:CX)’s prospects.
CEMEX, S.A.B. de C.V. (CX) is expected to jump by 84.14 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $10.2-month high price target. This represents a whopping 104.82 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $8.87, which represents a return potential of 78.11 percent when compared to the closing price of the stock of $4.98 on Thursday, December 06. The lowest price target for the stock is $5.5 — slightly more than 10.44 percent from CX’s current share price.
The shares are currently floating around the first support level of $4.82. Below this, the next support is placed in the zone of $4.66. Till the time, the CX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 44.17 on daily chart, which may remain a cause for concern. If the price breaks below $4.66 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $5.06 mark may result into a pull-back move towards $5.14 level.
CX shares accumulated 0.09 points or 1.84 percent on Thursday to $4.98 with a heavy trade volume of 10.359 million shares. After opening the session at $4.78, the shares went as high as $4.98 and as low as $4.74, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.23 billion and now has 1.45 billion shares outstanding. CEMEX, S.A.B. de C.V. (CX) stock has lost -9.12 percent of market value in 21 trading days.
CX stock has a trailing 3-year beta of 1.73, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.29 a share in the trailing twelve months. The stock’s value has fallen -33.6 percent year to date (YTD) against a decline of -31.69 percent in 12 month’s time. The company’s shares still trade -41.48 percent away from its 1-year high of $8.51 and 11.41 percent up from 52-week low of $4.47. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of CEMEX, S.A.B. de C.V. (CX) are trading at a P/E ratio of 16.08 times earnings reported for the past 12 months. The industry CX operates in has an average P/E of 46.62. Its P/E ratio went as low as 19.56X and as high as 837.33 over the 5-year span. Further, it is sporting a 0.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.68. 34.1 percent is the gross profit margin for CEMEX, S.A.B. de C.V. and operating margin sits at 9.6 percent. Along with this, the net profit margin is 3.4 percent.
CX will be showing off its Q4 earnings on February 07. Analysts are forecasting revenue to climb 3.4 percent to $3.54B in the next fiscal quarter, while earnings are seen soaring by nearly -210 percent to $0.11 per share. History has shown that shares in CEMEX, S.A.B. de C.V. have gone down on 11 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.1 per share, worse than the $0.16, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.75B, better than the $3.7B analysts expected. Earnings are estimated to increase by -11.2 percent this year, 13.55 percent next year and continue to increase by 14.1 percent annually for the next 5 years.