Gerdau (GGB) Gains As Market Dips: What You Should Know
Gerdau (GGB) closed the most recent trading day at $5.46, moving +0.74% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 1.58%.
Coming into today, shares of the steel producer had lost 14.24% in the past month. In that same time, the Basic Materials sector lost 3.6%, while the S&P 500 gained 0.84%.
Investors will be hoping for strength from Gerdau as it approaches its next earnings release. The company is expected to report EPS of $0.27, down 27.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, down 4.55% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Gerdau. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.19% lower. Gerdau is currently a Zacks Rank #3 (Hold).
Digging into valuation, Gerdau currently has a Forward P/E ratio of 6.06. Its industry sports an average Forward P/E of 10.57, so we one might conclude that Gerdau is trading at a discount comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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
