CEMEX: Initiating Bullish Position On Positive Near-Term Trends (Technical Analysis)

2025-05-09 06:24:31 ET

Summary

• CEMEX, S.A.B. de C.V. presents a value investment opportunity with a strong balance sheet, undervalued valuation multiples, and a favorable debt-to-equity ratio of 0.51.
• Despite a long-term bearish trend, technical indicators like RSI, stochastics, and MACD suggest a potential rally to $8.50–$9 in the coming months.
• Intermediate technicals show bullish divergences and an ascending triangle formation, indicating buyer accumulation and a potential breakout.
• Initiating a buy rating on CX, driven by encouraging intermediate trends and a favorable risk/reward setup.

Intro

CEMEX, S.A.B. de C.V. ( CX ) came across our desk from a screen we ran, where the objective was to find profitable companies with strong balance sheets and a compelling valuation to boot. CEMEX, S.A.B. de C.V. is a Mexican outfit that engages in the production and distribution of cement and concrete-based materials. The company recently announced its Q1 earnings numbers (Released 4/28/2025), where we witnessed beats in both the top and bottom lines. As we see from the company's valuation-based metrics below, shares are currently trading with very keen P/E, P/S, P/B, and P/C multiples. Followers of our work will be aware that we favor value plays that have the wherewithal to report positive undervalued valuation multiples because it improves the odds of a successful internal investment environment in CX over time....

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