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Gerdau (GGB) Gains But Lags Market: What You Should Know
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Gerdau (GGB - Free Report) closed the most recent trading day at $4.72, moving +0.43% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the steel producer had gained 9.56% over the past month. This has outpaced the Basic Materials sector's loss of 5.45% and the S&P 500's gain of 6.69% in that time.
Gerdau will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.96 billion, up 9.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.41 per share and revenue of $15.64 billion. These totals would mark changes of -16.07% and +7.56%, respectively, from last year.
Any recent changes to analyst estimates for Gerdau should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 9.9% lower. Gerdau is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 3.33. Its industry sports an average Forward P/E of 3, so we one might conclude that Gerdau is trading at a premium comparatively.
We can also see that GGB currently has a PEG ratio of 0.16. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 0.17 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Gerdau (GGB) Gains But Lags Market: What You Should Know
Gerdau (GGB - Free Report) closed the most recent trading day at $4.72, moving +0.43% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the steel producer had gained 9.56% over the past month. This has outpaced the Basic Materials sector's loss of 5.45% and the S&P 500's gain of 6.69% in that time.
Gerdau will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.43, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.96 billion, up 9.73% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.41 per share and revenue of $15.64 billion. These totals would mark changes of -16.07% and +7.56%, respectively, from last year.
Any recent changes to analyst estimates for Gerdau should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 9.9% lower. Gerdau is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 3.33. Its industry sports an average Forward P/E of 3, so we one might conclude that Gerdau is trading at a premium comparatively.
We can also see that GGB currently has a PEG ratio of 0.16. 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. Steel - Producers stocks are, on average, holding a PEG ratio of 0.17 based on yesterday's closing prices.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.