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Gerdau (GGB) Stock Moves -0.65%: What You Should Know

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Gerdau (GGB - Free Report) closed the most recent trading day at $6.08, moving -0.65% from the previous trading session. This change was narrower than the S&P 500's 1.04% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 5.88%.

Coming into today, shares of the steel producer had gained 8.51% in the past month. In that same time, the Basic Materials sector gained 11.63%, while the S&P 500 gained 8.97%.

Gerdau will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.30, down 18.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.98 billion, up 2.95% from the year-ago period.

Any recent changes to analyst estimates for Gerdau should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 15.85% higher within the past month. Gerdau currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Gerdau currently has a Forward P/E ratio of 6.44. Its industry sports an average Forward P/E of 11.56, so we one might conclude that Gerdau is trading at a discount comparatively.

Investors should also note that GGB has a PEG ratio of 0.3 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 1.16 as of yesterday's close.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 18, which puts 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.

To follow GGB in the coming trading sessions, be sure to utilize Zacks.com.


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