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Gerdau (GGB) closed the most recent trading day at $4.61, moving +0.44% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.17%.
Heading into today, shares of the steel producer had lost 22.99% over the past month, lagging the Basic Materials sector's loss of 9.64% and the S&P 500's loss of 5.71% in that time.
Gerdau will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.51, up 18.6% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.57 per share and revenue of $20.36 billion. These totals would mark changes of -6.55% and +40.03%, respectively, from last year.
Any recent changes to analyst estimates for Gerdau should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Gerdau is currently a Zacks Rank #3 (Hold).
Investors should also note Gerdau's current valuation metrics, including its Forward P/E ratio of 2.93. For comparison, its industry has an average Forward P/E of 2.93, which means Gerdau is trading at a no noticeable deviation to the group.
Also, we should mention that GGB has a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Producers was holding an average PEG ratio of 0.15 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.