Lafarge, the world leader in cement production, #2 and #3 in aggregates and concrete, and #3 in gypsum (wallboard), is currently in the bargain bin. The company is based in France but derives 46% of its revenues (and 66% of operating income) from the Middle East, Africa, Latin America and Asia. The balance of its operations comes from North America, Western and Eastern Europe. Its main global competitors are Holcim and Cemex. The company has been around since 1884 and its shares have traded on the Paris Stock Exchange since 1923.

At the current price of €47, investors in Lafarge can realize a 14% compounded return over the next four years using very conservative assumptions, and up to a 37% IRR over the same period if the recovery picks up more quickly.

To bet on Lafarge is to bet that the world will continue to build things made out of cement such as buildings, roads, and other such structures. The company is rebounding from the severe slump of the past two years with North America leading the volume recovery. While the upturn develops, the stock pays a €2 dividend for a yield of 4.3%.