Cemex Remains Set For Better Results, Even With Higher Costs Taking A Bite

 

I was definitely too eager to upgrade my view on Cemex (CX) back in September. Although demand remains healthy in most of the company’s key operating areas, more challenging comps and fierce cost inflation took a bigger bite in the second half than I expected. With that, the shares have lost about 30% of their value and significantly underperformed peers/comps like Buzzi (OTCPK:BZZUY), Cementos Argos (OTCPK:CMTOY), Heidelberg (OTCPK:HDELY), Holcim (OTCPK:HCMLY), and Martin Marietta Materials (MLM)

I do have some concerns about demand in Mexico in 2022 and costs clearly remain a key issue, but I think the share price weakness overstates the case. With a strong U.S. market and what I believe to be underrated opportunities in Europe, I think Cemex is set for some good years ahead even with the impact of lower margins. Below $9, I think these shares are worth another look.

 

Continue reading here: 

Cemex Remains Set For Better Results, Even With Higher Costs Taking A Bite