We recently compiled a list of the 10 Best Affordable Stocks Under $10 to Buy. In this article, we are going to take a look at where CEMEX, S.A.B. de C.V. (NYSE:CX) stands against the other affordable stocks under $10 to buy.
The Rate Cut Debate Continues
The Fed commenced its easing cycle, however, the debate stands. Investors and analysts alike are fixated on what the Fed’s path will look like before the year comes to a close. On October 16, Seema Shah, Principal Asset Management’s chief global strategist, appeared in an interview on Yahoo Finance to discuss her rate cut expectations and thesis on the equity market.
Shah emphasizes that while the jobs report was strong, the data upholds an element of seasonality and volatility. She adds that it’s important that these numbers alone are not blown out of proportion or extrapolated to predict the Fed’s cycle. While she acknowledges that labor demand has been sluggish, she believes that the trends have not been as concerning so far.
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In addition to that, while the US economy has been sluggish, it is not showing signs of decline, indicative of the fact that a normalization process is underway. Shah believes a 25 basis point cut in November and December would be the most ideal situation. She adds that the Fed’s path is pretty clear for now and uncertainty will start to come in by mid-2025.
Strong Fundamentals are Key to Equities
People have kept aside cash for quite a while now, and like other investors and analysts, Seema Shah also sheds light on the situation and hints at risk assets becoming popular. Shah shares that there is approximately $6.6 trillion sitting in money market funds right now and she does not expect all of it to move to equities. In fact, part of the money sitting in cash will be used by people to create safety nets for themselves.
She adds that investors who had moved their investments into safe spaces during a period of high interest rates are more likely to move out their cash to other investment places as interest rates start to go down. With a soft landing in sight, Shah shares stocks are in a sweet spot, especially because the upside to equities is growing.
Overall, equities boast a continued upside, not as high as 2023, but solid regardless. The upside to equities is going to be primarily driven by fundamentals, especially earnings. Moreover, during growth periods, the market broadening out to other sectors is key, which has been the case for 2024. Since fundamentals are crucial at the moment, we have compiled a list of cheap stocks with strong fundamentals and solid earnings growth expectations. Let’s take a look at the 10 best affordable stocks under $10 to buy.
Our Methodology
To come up with the 10 best affordable stocks under $10, we studied stocks on the Finviz Stock Screener with a Forward P/E of under 15 and a share price of less than $10. We then examined the hedge fund sentiment of each stock and picked the most popular ones. Our list is in ascending order of the number of hedge fund holders as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of a construction site for a single family detached home.
CEMEX, S.A.B. de C.V. (NYSE:CX)
Number of Hedge Fund Holders: 22
Share Price as of October 18, 2024: $5.94
Forward P/E as of October 18, 2024: 7.97
CEMEX, S.A.B. de C.V. (NYSE:CX) ranks eighth on our list of the best affordable stocks to buy under $10. The multinational building materials company is headquartered in Mexico. The company aims to meet the sustainable construction needs of people from across the globe. Its major products include cement, ready-mix concrete, and urbanization solutions.
The company is expanding its footprint on a global scale. On October 15, CEMEX (NYSE:CX) supplied 100,000 cubic meters of concrete to Dubai, UAE, for the construction of the Hassyan Power Plant. The plant is high on efficiency. It significantly reduces fuel consumption and emissions and generates 2,400 megawatts of electricity, covering 25% of Dubai’s demand.
The company plans to become a net-zero CO2 company by 2050 and is actively engaged in achieving the target at the moment. By 2030, CEMEX (NYSE:CX) plans to celebrate a 58% reduction in CO2 emissions per ton of cementitious product, with 2020 as a base year. To achieve its 2030 sustainability goals, the company aims to invest $150 million annually. So far, the company has achieved a 33% reduction in net CO2 emissions per ton of cementitious product based on its levels in 1990.
The company is emerging as a global leader driving sustainability and positive social impact. Its large network along with its sustainable methods of production promise significant growth in the coming years. This explains why 22 hedge funds were bullish on the stock at the end of Q2 2024.
Overall CX ranks 8th among the 10 best affordable stocks under $10 to buy. While we acknowledge the potential of CX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.