Cemex SAB De CV (CX) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Cemex SAB de CV (CX) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Cemex SAB de CV

(

CX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Cemex SAB de CV as such a stock due to the following factors:

  • CX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.3 million.
  • CX has traded 2.1 million shares today.
  • CX is trading at 2.08 times the normal volume for the stock at this time of day.
  • CX is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CX:

CEMEX, S.A.B. de C.V., a building materials company, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, and other construction materials in Mexico, the United States, Northern Europe, the Mediterranean, South America, the Caribbean, and Asia. Currently there are 3 analysts that rate Cemex SAB de CV a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Cemex SAB de CV has been 15.0 million shares per day over the past 30 days. Cemex SAB de CV has a market cap of $7.0 billion and is part of the industrial goods sector and materials & construction industry. Shares are down 45% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cemex SAB de CV as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The gross profit margin for CEMEX SAB DE CV is currently lower than what is desirable, coming in at 34.18%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.32% trails that of the industry average.
  • CX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 50.84%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Construction Materials industry average, but is greater than that of the S&P 500. The net income increased by 57.4% when compared to the same quarter one year prior, rising from -$96.61 million to -$41.12 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction Materials industry and the overall market on the basis of return on equity, CEMEX SAB DE CV underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • CX, with its decline in revenue, slightly underperformed the industry average of 8.2%. Since the same quarter one year prior, revenues fell by 16.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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