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Gerdau (GGB) Gains As Market Dips: What You Should Know
Gerdau (GGB - Free Report) closed the most recent trading day at $5.47, moving +0.55% from the previous trading session. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.84%.
Coming into today, shares of the steel producer had lost 14.2% in the past month. In that same time, the Basic Materials sector lost 5.47%, while the S&P 500 lost 2%.
Gerdau will be looking to display strength as it nears its next earnings release. In that report, analysts expect Gerdau to post earnings of $0.27 per share. This would mark a year-over-year decline of 27.03%. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, down 4.55% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Gerdau. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 3.76% lower. Gerdau currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 6.08. This valuation marks a discount compared to its industry's average Forward P/E of 10.66.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.