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Gerdau (GGB) closed at $4.76 in the latest trading session, marking a +0.63% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.81%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 1.69%.
Heading into today, shares of the steel producer had gained 8.02% over the past month, outpacing the Basic Materials sector's gain of 5.2% and the S&P 500's gain of 3.56% in that time.
GGB will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, up 5.07% from the year-ago period.
It is also important to note the recent changes to analyst estimates for GGB. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 35.53% higher within the past month. GGB currently has a Zacks Rank of #2 (Buy).
Digging into valuation, GGB currently has a Forward P/E ratio of 8.89. This valuation marks a discount compared to its industry's average Forward P/E of 10.67.
Meanwhile, GGB's PEG ratio is currently 0.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Producers industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Gerdau S.A. (GGB) : Free Stock Analysis Report
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