One Company Taking Advantage of Cheap Oil

Today, we’re taking a look at a company enjoying low oil prices…

The industrial sector – which includes manufacturing, mining, agriculture, and construction – accounts for a big chunk of total U.S. energy usage.

Within the sector, the cement industry is the most energy intensive, requiring large amounts of fuel and electricity.

And that means the price of fuel can make a big difference in the cement business…

With a market cap of nearly $14 billion, Cemex (CX) is one of the world’s largest cement producers.

Electricity and fuel make up a large percentage of its production costs.

And with oil trading for less than $50 a barrel, those costs are dropping… And Cemex’s profit margins are rising.

A quick look at Cemex shares shows how much cheap oil prices have padded the company’s bottom line.

Shares have soared from their January 2016 low, up more than 140% since then. And until oil prices reverse and head much higher, Cemex shares will likely continue to climb…

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Source: Daily Wealth’s Market Notes