Alert: Negative Investment/Fundamental Signals (9/20/24)-Gerdau SA (NYSE: GGB)

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Recent meaningful negative changes in fundamentals have impacted Gerdau SA (NYSE: GGB): significant quarterly sales deceleration occurred, significant quarterly earnings deceleration occurred, and the consensus estimate for December, 2025 decreased significantly.

Gerdau SA (NYSE: GGB) suffers from notable negative changes in investment behavior: the stock fell on very heavy volume.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

With future capital returns forecasted to exceed the cost of capital, GGB is expected to continue to be a modest Value Builder.

Gerdau has a current Value Trend Rating of C (High Neutral). This rating combines very contradictory signals from two proprietary PTR measures of a stock’s attractiveness. Gerdau has a very high Appreciation Score of 96 but a poor Power Rating of 23, and the High Neutral Value Trend Rating results.

Recent Price Action

Gerdau SA (NYSE: GGB) stock declined by -4.7% on 9/20/24. The shares closed at $3.26. Moreover, exceptionally high trading volume at 239% of normal accompanied the decline. The stock has been weak relative to the market over the last nine months and has declined -1.8% during the last week.

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