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Gerdau (GGB) Stock Sinks As Market Gains: What You Should Know
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Gerdau (GGB - Free Report) closed the most recent trading day at $6.48, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.81% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the steel producer had gained 12.63% over the past month. This has outpaced the Basic Materials sector's gain of 11.08% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Gerdau as it approaches its next earnings release.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.98 per share and revenue of $13.9 billion. These totals would mark changes of -41.67% and -4.41%, respectively, from last year.
Any recent changes to analyst estimates for Gerdau should also be noted by investors. 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.
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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Gerdau currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 6.64. For comparison, its industry has an average Forward P/E of 4.57, which means Gerdau is trading at a premium to the group.
Investors should also note that GGB has a PEG ratio of 0.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.31 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Gerdau (GGB) Stock Sinks As Market Gains: What You Should Know
Gerdau (GGB - Free Report) closed the most recent trading day at $6.48, moving -0.46% from the previous trading session. This change lagged the S&P 500's 0.81% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.36%.
Prior to today's trading, shares of the steel producer had gained 12.63% over the past month. This has outpaced the Basic Materials sector's gain of 11.08% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Gerdau as it approaches its next earnings release.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.98 per share and revenue of $13.9 billion. These totals would mark changes of -41.67% and -4.41%, respectively, from last year.
Any recent changes to analyst estimates for Gerdau should also be noted by investors. 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.
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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Gerdau currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Gerdau is currently trading at a Forward P/E ratio of 6.64. For comparison, its industry has an average Forward P/E of 4.57, which means Gerdau is trading at a premium to the group.
Investors should also note that GGB has a PEG ratio of 0.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Producers was holding an average PEG ratio of 0.31 at yesterday's closing price.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.