Why Gerdau S.A. (GGB) Stock Price Dropped Up To -2.08% Today

Gerdau S.A. (NYSE:GGB) is a stock to watch today. At current price of $3.3, the shares have already lost -0.07 points (-2.08% lower) from its previous close of $3.37. The stock sets an active trading volume day with a reported 7787337 contracts so far this session. GGB shares had a relatively better volume day versus average trading capacity of 11.46 million shares, but with a 1.05 billion float and a -5.34% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for GGB stock indicates that the average analyst price target is $5.66 per share. This means the stock has a potential increase of 71.52% from where the GGB share price has been trading recently.There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $2.7.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Sarah Ketterer’s Top 5 New Buys” and dated May 16, 2019.

During the recent trading session for Gerdau S.A. (NYSE:GGB), the company witnessed their stock drop by $-0.23 over a week and tumble down $-0.5 from the price 20 days ago. When compared to their established 52-week high of $4.84, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 05/21/18. The recent low of $3.29 stood for a -32.99% since 05/17/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.93 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Gerdau S.A., the two-week RSI stands at 29.12. This figure suggests that GGB stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current GGB readings is similarly very revealing as it has a stochastic reading of 9.2% at this stage. This figure means that GGB share price today is being overbought.

Technical chart claims that Gerdau S.A. (GGB) would settle between $3.44/share to $3.52/share level. However, if the stock price goes below the $3.32 mark, then the market for Gerdau S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $3.28 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.11. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Goldman, assumed coverage of GGB assigning Buy rating, according to their opinion released on December 13. BofA/Merrill, analysts launched coverage of Gerdau S.A. (NYSE:GGB) stock with a Buy recommendation, according to their flash note issued to investors on August 16. Analysts at Morgan Stanley lowered the stock to a Equal-Weight call from its previous Overweight recommendation, in a research note that dated back to March 08.

GGB equity has an average rating of 1.33, with the figure leaning towards a bullish end. 3 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 3 analysts rated Gerdau S.A. (NYSE:GGB) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, GGB stock price is currently trading at 7.78X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.48 while for the average stock in the same group, the multiple is 0.79. Gerdau S.A. current P/E ratio of 10.03 means it is trading at a discount against its industry’s 11.47. In the past 5 years, this ratio for the stock has been fluctuating between 10.78 and 11.48.

Gerdau S.A. (GGB)’s current-quarter revenues are projected to climb by nearly -14.8% to hit $2.86 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -8.52% from $12.63 billion to a noteworthy $11.55 billion. At the other end of the current quarter income statement, Gerdau S.A. is expected to see its adjusted earnings surge by roughly -8.33% to hit $0.11 per share. For the fiscal year, GGB’s earnings are projected to climb by roughly 2.5% to hit $0.41 per share.