Mexico-based cement manufacturer CEMEX (CX) looks well-positioned to benefit from the reopening of construction activities globally. And we think the company’s solid financials and impressive growth prospects make it an ideal investment bet now.Headquartered in San Pedro Garza García, Mexico, CEMEX, S.A.B. de C.V. (CX) manufactures and sells assorted construction materials to customers worldwide. With a market capitalization of almost $12 billion, CX is one of the leading players in the cement and construction industry. Shares of CX have gained 165.1% over the past year and 60% year-to-date.
Earlier this year, the company played a major role in addressing the cement shortage and supply chain disturbances in the Western states. CX invested $15 million to recommission a kiln production facility in Mexico to meet surging demand for cement and other construction materials in California, Arizona, and Nevada. As a result, the company’s revenues increased 335% year-over-year to $3.86 billion in its fiscal second quarter ended June 30. Its earnings per ADS rose 2,353% from the prior-year quarter to $0.18.
This trend is likely to continue because CX is expected to benefit significantly from the $1 trillion infrastructure package to restructure U.S. infrastructure that is now working its way through the U.S. Senate. .