Gerdau S.A. (NYSE:GGB) is among the top gainers of the stock market today, skyrocketing 3.15% or (0.1 points) to $3.12 from its previous close of $3.02. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1997470 contracts so far this session. GGB shares had a relatively better volume day versus average trading capacity of 9.31 million shares, but with a 1.05 billion float and a 0.67% 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 $5.46 per share. This means the stock has a potential increase of 75% from where the GGB share price has been trading recently which is between $2.96 and $3.06. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $3.55. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $5.28.
During the recent trading session for Gerdau S.A. (NYSE:GGB), the company witnessed their stock drop by $-0.03 over a week and tumble down $-0.24 from the price 20 days ago. When compared to their established 52-week high of $4.71, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 02/11/18. The recent low of $2.73 stood for a -33.86% since 08/27/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.88 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. At the moment, the median target price for GGB is set at $4.56, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for Gerdau S.A., the two-week RSI stands at 48.93. This figure suggests that GGB stock, for now, is neutral, meaning that the shares are 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 30.11% at this stage. This figure means that GGB share price today is being neutral.
Technical chart claims that Gerdau S.A. (GGB) would settle between $3.07/share to $3.11/share level. However, if the stock price goes below the $2.97 mark, then the market for Gerdau S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $2.91 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.04. 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.
Moving on, GGB stock price is currently trading at 8.23X forward 12-month Consensus EPS estimates, and its P/E ratio is 10.7 while for the average stock in the same group, the multiple is 6. Gerdau S.A. current P/B ratio of 0.8 means it is trading at a premium against its industry’s 0.7.