Yahoo Finance Gerdau (GGB) Dips More Than Broader Markets: What You Should Know
Gerdau (GGB) closed at $5.07 in the latest trading session, marking a -1.93% move from the prior day. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Heading into today, shares of the steel producer had lost 5.14% over the past month, lagging the Basic Materials sector's loss of 4.43% and outpacing the S&P 500's loss of 5.39% 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 $0.27, 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.
GGB's full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $16.38 billion. These results would represent year-over-year changes of -8.93% and +2.62%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.79% lower. Gerdau is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Gerdau has a Forward P/E ratio of 5.78 right now. This represents a discount compared to its industry's average Forward P/E of 9.95.
The Steel - Producers industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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.
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Gerdau S.A. (GGB) : Free Stock Analysis Report
