5-Star Stocks Poised to Pop: Cemex

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Mexican cement giant Cemex (NYSE: CX) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cemex's business and see what CAPS investors are saying about the stock right now.

Cemex facts

Headquarters (Founded)

Garza Garcia, Mexico (1906)

Market Cap

$9.89 billion

Industry

Construction materials

Trailing-12-Month Revenue

$16.91 billion

Management

CEO Lorenzo Trevino (since 1985)
CFO Rodrigo Trevino (since 1997)

Return on Equity (Average, Past 5 Years)

15.6%

Cash / Debt

$978.6 million / $19.26 billion

Competitors

Vulcan Materials (NYSE: VMC)
Martin Marietta Materials (NYSE: MLM)

CAPS Members Bullish on CX Also Bullish on

General Electric (NYSE: GE)
Johnson & Johnson (NYSE: JNJ)

CAPS Members Bearish on CX Also Bearish on

Ford Motor (NYSE: F)
Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98.2% of the 1,464 All-Star members who have rated Cemex believe the stock will outperform the S&P 500 going forward. These bulls include TMFSTX and JakilaTheHun, both of whom are ranked in the top 3% of our community.

Just last month, TMFSTX tapped Cemex as a solid way to play a pair of powerful trends: "Large infrastructure projects pending in the USA and Mexico. Industry consolidation."

In a pitch from one week later, JakilaTheHun expanded on Cemex as a good, but not great, value proposition:

Cemex has good growth prospects. They are well positioned in emerging markets. Historical earnings and cash flows have been around the $0.75 - $1.30 range. I liked this a lot when it crept under $7; and especially under $5, where it was an outright steal! At $13, I'm becoming more neutral on it. ... While cash flows are strong, I believe they support a valuation somewhere in the $14 - $23 range.

What do you think about Cemex, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Cemex is a Motley Fool Stock Advisor pick and a former Global Gains choice, Vulcan is an Inside Value choice, and Johnson & Johnson is a selection of Income Investor. The Fool owns shares of Cemex. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 02, 2009, at 3:11 PM, ClementB wrote:

    Cemex seems a great company. J'am still worry about her debts.

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11/24/2009 4:00 PM
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