Wall Street’s most bullish Gerdau S.A. (NYSE:GGB) analysts are predicting the share price to blow past $6.28 per share during the next 12 months. The current median share price forecast by them is $5.43, suggesting that the stock could increase 33.42% in that time frame. The average price target of $5.47 calls for a nearly 34.4% increase in the stock price.
Gerdau S.A. (GGB) trading activity significantly weakened as the volume at ready counter decreased to 8,095,451 shares versus 10,352,555 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 10,370,589 shares. The share price dropped -0.25% in recent trade and currently has a stock-market value of $6.66B. The shares finished at $4.07, after trading as low as $4 earlier in the session. It hit an intraday high Friday at $4.11. The stock is now 22.22% above against its bear-market low of $3.33 on June 27, 2018. It has retreated -30.71% since it’s 52-week high of $5.32 reached in March. Now the market price is down -3.54% on the year and up 8.24% YTD.
GGB’s 50 day simple moving average (SMA 50) price is $4.03 and its 200-day simple moving average (SMA 200) price is $4.12. The company’s stock currently has a total float of 1.05B shares. Its weekly volatility is hovering around 3.09% and felt 2.94% volatility in price over a month. On the upside, the share price will test short term resistance at around $4.12. On a downside, the stock is likely to find some support, which begins at $4.01. The failure to get near-term support could push it to $3.95.
It had seen a new analyst call from Goldman, which initiated the stock at Buy on December 13. Analysts at BofA/Merrill, started covering the stock on August 16 with a Buy rating. The stock lost favor of Morgan Stanley analysts who expressed their lack of confidence in it using a downgrade from Overweight to Equal-Weight on March 08. Credit Suisse analysts came out with bullish views on February 02 when the call was made. They think the stock is now Outperform compared to to their prior call for Neutral.
When looking at valuations, Gerdau S.A. (GGB) has a pricey P/E of 47.33x as compared to industry average of 9.83x. Moreover, it trades for 8.53 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.97x price/book and 0.55x price/sales. Compared to others, Gerdau S.A. is in a different league with regards to profitability, having net margins of 1.2%. To put some perspective around this, the industry’s average net margin is 2.16%. GGB’s ROE is 2.2%, which is also considerably worse than the industry’s ROE of 6.43%. It’s also very liquid in the near term, with a current ratio of 2.4. The stock has a debt/capital of 0.72.
Shares of Gerdau S.A. (GGB) have dropped -9.8% since the company’s last earnings report. Over the past 1 fiscal quarters, Gerdau S.A. (NYSE:GGB) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. GGB last reported earnings on November 07, 2018 when it released Dec-17 results that receded expectations. The company raked in -$0.15 per share, -99.87% change on the same period last year. That was worse than consensus for -$0.07. Revenue for the recent quarter stood at $9.82 billion, up 14% on last year and above the $9.4 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $47.45 billion to $49.89 billion, which should be compared with $42.39 billion generated last year. EPS is seen in a range of $4.42 to $415.15.