Gerdau (GGB) closed the most recent trading day at $5.55, moving +1.46% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.38%. At the same time, the Dow lost 1.26%, and the tech-heavy Nasdaq lost 5.67%.
Prior to today’s trading, shares of the steel producer had lost 15.33% over the past month. This has lagged the Basic Materials sector’s loss of 1.48% and the S&P 500’s gain of 3.87% in that time.
Investors will be hoping for strength from Gerdau as it approaches its next earnings release. The company is expected to report EPS of $0.27, down 27.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.69 billion, down 4.55% from the prior-year quarter.
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.
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.
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. The Zacks Consensus EPS estimate has moved 9.15% higher within the past month. Gerdau is currently a Zacks Rank #3 (Hold).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 6.11. This represents a discount compared to its industry’s average Forward P/E of 10.82.
The Steel – Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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