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

Century Aluminum Company’s CENX shares have been showing impressive gains of late, trading close to its 52-week high of $59.12. The stock closed at $57.71 yesterday, 2.4% below the highest point. Shares of the primary aluminum producer have surged 121.7% in the past six months, outpacing the Zacks sub-industry’s and the S&P 500’s growth of 22.1% and 3.3%, respectively.

Other industry players like Kaiser Aluminum Corporation KALU and ESAB Corporation ESAB have surged 56.4% and declined 5%, respectively, over the said time frame.

CENX Outperforms Industry & S&P 500

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The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.

CENX Shares Trading Above 50-Day and 200-Day SMA

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Factors Favoring the Company

Century Aluminum is poised to benefit from strong global demand for aluminum, supported by improving industrial activity and steady consumption across key end markets. Aluminum prices are influenced by the London Metal Exchange (LME) along with regional premiums, which have remained supportive for producers. Higher regional premiums and favorable market dynamics are likely to aid Century Aluminum’s pricing and profitability.

CENX operates primary aluminum smelters in the United States and Iceland, with a combined annual production capacity of approximately 770,000 tons. In 2025, Century Aluminum produced approximately 638,000 tons of primary aluminum, with operations at facilities including Grundartangi in Iceland, Sebree in Kentucky and Mt. Holly in South Carolina. The company is currently working to restore curtailed capacity at the Mt. Holly smelter, with plans to return the facility to full production by mid-2026. In October 2025, CENX finalized an extended power service agreement with Santee Cooper for the Mt. Holly smelter, securing electricity supply through 2031. This should further enhance the company’s production capacity.

Century Aluminum also owns a 55% stake in the Jamalco bauxite mining and alumina refining joint venture in Jamaica, which helps ensure a steady supply of alumina, a key raw material for aluminum production. Also, in January 2026, the company inked a joint development deal with Emirates Global Aluminium to build a new aluminum smelter in Oklahoma. This is expected to produce 750,000 tons of aluminum annually, increasing domestic production in the United States.

Century Aluminum is actively implementing several strategies aimed at reducing costs and conserving cash amid challenging market conditions. Through effective management of controllable expenses, the company anticipates bolstering its financial performance in the short term. At the end of the fourth quarter of 2025, the company had cash and cash equivalents of $134.2 million. Cash provided by operating activities was $185 million.

CENX operates in the highly competitive primary aluminum market, which includes major industry players such as Kaiser Aluminum and ESAB Corp.

Estimate Revisions

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The Zacks Consensus Estimate for CENX’s bottom line for 2026 has increased 42.1% in the past 60 days.

Valuation

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From a valuation standpoint, Century Aluminum is trading at a trailing price-to-earnings ratio of 8.52X compared with the industry average of 16.06X. In comparison, Kaiser Aluminum and ESAB Corp. are trading at 15.84X and 17.22X, respectively.

Conclusion

Century Aluminum is benefiting from strong aluminum demand and supportive pricing. The company is restoring capacity at its Mt. Holly smelter and expanding through a new aluminum smelter project in Oklahoma. The company’s solid liquidity and cost-control measures position it for sustained growth, creating an attractive opportunity for potential investors to bet on this Zacks Rank #1 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Kaiser Aluminum Corporation (KALU): Free Stock Analysis Report

Century Aluminum Company (CENX): Free Stock Analysis Report

ESAB Corporation (ESAB): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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