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Is Gerdau (GGB) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Gerdau (GGB - Free Report) is a stock many investors are watching right now. GGB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

GGB is also sporting a PEG ratio of 0.45. 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 has an average PEG of 0.51 right now. Over the last 12 months, GGB's PEG has been as high as 5.36 and as low as -7.74, with a median of 0.60.

Investors should also recognize that GGB has a P/B ratio of 1.81. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.27. Over the past 12 months, GGB's P/B has been as high as 1.97 and as low as 0.49, with a median of 1.21.

These are just a handful of the figures considered in Gerdau's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GGB is an impressive value stock right now.


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