Gerdau S.A. (NYSE:GGB) traded at $2.79 at last check on Monday, June 29, making an upward move of 1.44% on its previous day’s price.
Looking at the stock we see that its previous close was $2.77 and the beta (5Y monthly) reads 2.12 with the day’s price range being $2.7850 – 2.8650. The company has a 12-month trailing PE ratio of 33.86. In terms of its 52-week price range, GGB has a high of $5.34 and a low of $1.65. The company’s stock has gained about 9.92% over that past 30 days.
Gerdau has a market cap of $4.76 Billion and is expected to release its quarterly earnings report in July. With its Forward Dividend at 0.02 and a yield of 0.89%, the company’s investors could be anxious for the GGB stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $0.1, with the EPS growth for the year raised at $1.5 for 2020 and $0.91 for next year. These figures represent 10.54% and at -0.39% growth in EPS for the two years respectively.
Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $8.86 Billion, with a low of $8.86 Billion and a high of $8.86 Billion. The median projection represents growth adding up to -12.8% compared to sales earnings for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecasts for 2020 are expected to hit $39.02 Billion, or -1.6% down from figures reported last year.
There have been 1 upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the GGB stock, short term indicators assign the stock an average of Hold, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of 50% Sell.
Based on estimates by 12 analysts where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 5 have rated the Gerdau S.A. (GGB) stock as a Hold, while 5 rate it as a Buy. None analysts rate it as outperform while 1 of them rated it as underperform, whereas 1 suggests the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.
Looking further, we note that the PEG ratio for the GGB stock currently stands at 11.46, and the current price level is -2.73% off its SMA20 and 14.68% from its 50-day simple moving average. The RSI (14) is pointing at 52.55 while the volatility over the past week is 5.68% and jumps to 6% over the past one month. The beta value is 2.24, while the average true range (ATR) is currently pointing at 0.19. The average price target for the stock over the next 12 months is $2.76, with the estimates having a low of $1.69 and a high of $3.7. These price ends are -39.43% and +32.62% off the current price level respectively, although investors could be excited at the prospect of a +0% if the GGB share price touches on the median price of $2.79.
Let’s briefly compare Gerdau (GGB) stock to its peers. We find that today’s price change of +1.44% and -28.05% over the past 12 months for GGB betters that of Posco ADR (PKX), which has seen its stock price fall -1.15% in the latest trading session and is -29.5% over the last one year. Another of its peers Nucor Corp (NUE) has climbed 1.33% today, but is -25.6% down over the past year, while Arcelormittal (MT) is also up 1.44% yet its price remains in the red at -28.05% over the same period. Posco has a P/E ratio of 9.73 compared to Gerdau’s 25.89 and Nucor’s 15.77. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at 1.81% and 1.11%, respectively, in early deals.
Coming back to Gerdau S.A. (NYSE:GGB), we note that the average 3-month trading volume was 10.8 Million, while that of the preceding 10-day period stands at 11.97 Million. Current shares outstanding are 1.7 Billion.
According to data from Thomson Reuters, insiders hold 0% of the company’s shares while institutions hold 21.91%. The data shows that short shares as of June 14, 2020, stood at 39.37 Million at a short ratio of 4.55. This represents a 2.77% Short interest in Shares outstanding on June 14, 2020. Shares short dropped in June from the previous month at 39.69 Million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock -43.47% down in year-to-date price movement.