Gerdau (GGB) Stock Moves -0.48%: What You Should Know
In the latest trading session, Gerdau (GGB) closed at $6.19, marking a -0.48% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.69%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the steel producer had gained 5.42% over the past month, lagging the Basic Materials sector's gain of 7.5% and the S&P 500's gain of 7.88% in that time.
Investors will be hoping for strength from Gerdau as it approaches its next earnings release.
GGB's full-year Zacks Consensus Estimates are calling for earnings of $0.98 per share and revenue of $13.9 billion. These results would represent year-over-year changes of -41.67% and -4.41%, respectively.
It is also important to note the recent changes to analyst estimates for Gerdau. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Gerdau is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Gerdau currently has a Forward P/E ratio of 6.35. Its industry sports an average Forward P/E of 4.03, so we one might conclude that Gerdau is trading at a premium comparatively.
Investors should also note that GGB has a PEG ratio of 0.29 right now. 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. GGB's industry had an average PEG ratio of 0.25 as of yesterday's close.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% 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.
To follow GGB in the coming trading sessions, be sure to utilize Zacks.com.
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Gerdau S.A. (GGB) : Free Stock Analysis Report
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