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Gerdau (GGB) Dips More Than Broader Markets: What You Should Know

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Gerdau (GGB - Free Report) closed at $4.47 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's daily loss of 0.44%. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.72%.

Coming into today, shares of the steel producer had lost 4.6% in the past month. In that same time, the Basic Materials sector gained 1.47%, while the S&P 500 gained 4.46%.

Investors will be hoping for strength from GGB as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 5.07% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for GGB. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 6.58% higher. GGB is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, GGB currently has a Forward P/E ratio of 11.26. For comparison, its industry has an average Forward P/E of 11.26, which means GGB is trading at a no noticeable deviation to the group.

It is also worth noting that GGB currently has a PEG ratio of 0.39. 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. GGB's industry had an average PEG ratio of 1 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 44, which puts it in the top 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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