CENX is Trading Near 52-Week High: Here's How to Play the Stock

Core Insights - Century Aluminum Company's (CENX) shares have surged 121.7% over the past six months, significantly outperforming the Zacks sub-industry's growth of 22.1% and the S&P 500's growth of 3.3% [1][7] - The stock is currently trading near its 52-week high of $59.12, closing at $57.71, which is 2.4% below this peak [1][7] - The company is benefiting from strong aluminum demand and favorable pricing conditions, with plans to restore capacity at its Mt. Holly smelter and develop a new aluminum smelter in Oklahoma [7][10][18] Company Performance - CENX operates primary aluminum smelters in the U.S. and Iceland, with a combined annual production capacity of approximately 770,000 tons [9] - The company produced approximately 638,000 tons of primary aluminum in 2025 and is working to restore curtailed capacity at the Mt. Holly smelter by mid-2026 [9] - Century Aluminum has secured a power service agreement for the Mt. Holly smelter, ensuring electricity supply through 2031, which will enhance production capacity [9] Market Position - The company holds a 55% stake in the Jamalco bauxite mining and alumina refining joint venture in Jamaica, ensuring a steady supply of alumina [10] - CENX is actively implementing cost-reduction strategies and had cash and cash equivalents of $134.2 million at the end of Q4 2025, with cash provided by operating activities amounting to $185 million [11] Valuation Metrics - Century Aluminum is trading at a trailing price-to-earnings ratio of 8.52X, significantly lower than the industry average of 16.06X, and compared to Kaiser Aluminum and ESAB Corp. at 15.84X and 17.22X, respectively [17] Future Outlook - The Zacks Consensus Estimate for CENX's bottom line for 2026 has increased by 42.1% in the past 60 days, indicating positive market sentiment [15] - The company's strong liquidity and cost-control measures position it for sustained growth, making it an attractive opportunity for potential investors [18]