Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cemex SAB de CV ( CX) as a "dead cat bounce" (down big yesterday but up big today) 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 $149.3 million.
  • CX has traded 374,839 shares today.
  • CX is up 4.1% today.
  • CX was down 6.6% yesterday.

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More details on CX:

CEMEX, S.A.B. de C.V. produces, markets, distributes, and sells cement, ready-mix concrete, clinker, aggregates, and other construction materials for home construction and concrete pavement applications. Currently there are 8 analysts that rate Cemex SAB de CV a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Cemex SAB de CV has been 13.1 million shares per day over the past 30 days. Cemex SAB de CV has a market cap of $10.7 billion and is part of the industrial goods sector and materials & construction industry. Shares are down 7.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cemex SAB de CV as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • CEMEX SAB DE CV has improved earnings per share by 36.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CEMEX SAB DE CV continued to lose money by earning -$0.66 versus -$0.76 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$0.66).
  • CX, with its decline in revenue, underperformed when compared the industry average of 13.7%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CEMEX SAB DE CV is currently lower than what is desirable, coming in at 34.14%. Regardless of CX's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.53% trails the industry average.
  • CX has underperformed the S&P 500 Index, declining 21.45% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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