Why You Should Add Century Aluminum Stock to Your Portfolio

Century Aluminum Company CENX is benefiting from strong demand in a variety of intermediate and end markets, driven by robust manufacturing operations, particularly in the United States.Century Aluminum Stock’s Price PerformanceShares of Century Aluminum have shot up 51.6% in the past year against a 33.5% decline of the industry.Image Source: Zacks Investment ResearchStrong Demand, Acquisitions to Aid CENXCentury Aluminum is well-positioned to benefit from an uptick in global aluminum demand, which is exceeding global supply growth. With expectations of resuming long-term growth rates, aided by falling interest rates and improved GDP growth in the United States and EU markets, as well as initiatives such as the Inflation Reduction Act and similar spending programs in the EU and other regions, the company anticipates a sustained increase in aluminum demand, particularly in automotive and renewable energy applications. Also, the global shifts toward electrification and lightweighting will continue to increase the demand for aluminum.Century Aluminum's acquisition of Jamalco strengthened its raw material supply network and created prospects for value expansion through capital and operational enhancements. The company aims to spend between $10 million and $15 million on sustaining capital expenditures, like Jamalco. In the first quarter of 2024, the company invested $17 million in the Iceland casthouse project, using cash from its dedicated Grundartangi casthouse credit facility.Lower Cost to Boost Century Aluminum’s MarginsDespite the adverse market conditions, the company is actively exploring many cost-cutting and cash-saving approaches. The company expects to improve its short-term financial performance by effectively managing controllable expenses.CENX’ Zacks Rank & Other Key PicksCENX currently sports a Zacks Rank #1 (Strong Buy).  You can see the complete list of today's Zacks #1 Rank stocks here.Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, New Gold Inc. NGD and CF Industries Inc. CF. Carpenter Technology currently sports a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 141% in the past year. New Gold, which currently carries a Zacks Rank #2 (Buy), beat the consensus estimate in three of the trailing four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 37.5%, on average. NGD’s shares have rallied 70.5% over the past year. CF currently has a Zacks Rank #2, beat the consensus estimate in two of the last four quarters and missed twice, with the average earnings surprise being 10.3%. CF has gained around 6.6% in the past year. Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report New Gold Inc. (NGD): Free Stock Analysis Report Century Aluminum Company (CENX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks