Trump Stocks to Watch: Cemex (CX)
Year-to-Date Gains: 10.1%
52-Week Performance: 49.8%
Price Target: $9.75
This Mexican company Cemex SAB de CV (ADR) (NYSE:CX) is the world’s third-largest cement producer, though it might as well be a U.S. company because it gets most of its sales from The Land of the Free and Home of the Brave, where it has 13 plants.
It stands to benefit from Trump’s $1 trillion infrastructure plan and, ironically, his “Great, Great Wall” along the U.S.-Mexico border that may cost an eye-popping $40 billion. According to the Wall Street Journal, Cemex chairman Rogelio Zambrano got lots of grief from politicians in Mexico when he told a newspaper that the company “will gladly” provide estimates for supplying cement for The Trump Wall.
However, media and analyst coverage is sporadic. Shares fell more than 5 percent on Thursday, and I can find no explanation for it. The stock surged 8 percent the day before, when CX stock settled a tender offer that will let it pay down some of its high debt load. The company recently reported its best full-year profit in nearly a decade thanks to cost cuts and asset sales.
Verdict: There are better choices than CX out there for investors.