Century Aluminum Co (NASDAQ:CENX) is staging a comeback and it might be just the right time to ride the stock. Charles Payne of Fox Business discussed the outlook for the company and the Aluminum industry with a couple of analysts on his show.
“[…] After a precipitous free fall in prices and demand, Aluminum is hot again, as exemplified by this company’s [Century Aluminum Co (NASDAQ:CENX)] last quarter earnings. They showed leverage, strong cash flow, lower debt. It might feel like you are chasing the stock, looking at the one year chart here, keep in mind that the stock did change hands at $73 a share back in April 2008. Now it is breaking out, a move north to $30 will set sparks […],” informed Payne.
Payne had a $40 price target for the stock. Century Aluminum Co (NASDAQ:CENX)’s stock price has tripled in value since the beginning of this year. It was trading at $29.46 when the closing bell rang yesterday and is up 1.49% in the Pre-market trading. The company is rising back.
Penn Financial Group founder, Matt McCall, who was also present in the discussion expressed his opinion that the demand for Aluminum is only going up in the future, whith the new F150 truck being launched by Ford Motor Company (NYSE:F), which uses Aluminum for the perfect combination of light weight and sturdiness.
There is even more good news for Century Aluminum Co (NASDAQ:CENX) in the form of high economic activity expected in both U.S. and China, two main countries in which Century Aluminum operates. From the looks of the third quarter earnings submitted by most public companies, the manufacturing business is thriving and many companies are expected to increase their capital expenditures.
Century Aluminum Co (NASDAQ:CENX) offers the most essential products needed for infrastructure for this kind of expansion.
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