Gerdau SA (Brazil) Buy Hold or Sell Recommendation

GGBR3 Stock  BRL 20.02  0.24  1.21%   
Assuming the 90 days trading horizon and your complete indifference towards market risk, our recommendation regarding Gerdau SA is 'Strong Buy'. Macroaxis provides Gerdau SA buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding GGBR3 positions. The advice algorithm takes into account all of Gerdau SA's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Gerdau SA's buy or sell advice are summarized below:
Real Value
20.03
Hype Value
20.02
Market Value
20.02
Naive Value
20.04
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Gerdau SA given historical horizon and risk tolerance towards Gerdau SA. When Macroaxis issues a 'buy' or 'sell' recommendation for Gerdau SA, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Gerdau SA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Gerdau and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Gerdau SA. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Execute Gerdau SA Buy or Sell Advice

The Gerdau recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Gerdau SA. Macroaxis does not own or have any residual interests in Gerdau SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Gerdau SA's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Gerdau SABuy Gerdau SA
Strong Buy

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Gerdau SA has a Risk Adjusted Performance of (0.03), Jensen Alpha of (0.18), Total Risk Alpha of (0.38) and Treynor Ratio of (0.11)
Our trade recommendations module complements current analysts and expert consensus on Gerdau SA. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure Gerdau SA is not overpriced, please check out all Gerdau SA fundamentals, including its price to earning, price to sales, gross profit, as well as the relationship between the price to book and revenue .

Gerdau SA Trading Alerts and Improvement Suggestions

Gerdau SA generated a negative expected return over the last 90 days
The company has R$12.92 Billion in debt which may indicate that it relies heavily on debt financing
About 98.0% of the company shares are held by company insiders

Gerdau SA Returns Distribution Density

The distribution of Gerdau SA's historical returns is an attempt to chart the uncertainty of Gerdau SA's future price movements. The chart of the probability distribution of Gerdau SA daily returns describes the distribution of returns around its average expected value. We use Gerdau SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Gerdau SA returns is essential to provide solid investment advice for Gerdau SA.
Mean Return
-0.08
Value At Risk
-2.22
Potential Upside
2.25
Standard Deviation
1.32
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Gerdau SA historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Gerdau SA Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gerdau SA or Basic Materials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gerdau SA's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gerdau stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.18
β
Beta against NYSE Composite0.77
σ
Overall volatility
1.32
Ir
Information ratio -0.16

Gerdau SA Volatility Alert

Gerdau SA exhibits very low volatility with skewness of -0.01 and kurtosis of 0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gerdau SA's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gerdau SA's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Gerdau SA Fundamentals Vs Peers

Comparing Gerdau SA's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Gerdau SA's direct or indirect competition across all of the common fundamentals between Gerdau SA and the related equities. This way, we can detect undervalued stocks with similar characteristics as Gerdau SA or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Gerdau SA's fundamental indicators could also be used in its relative valuation, which is a method of valuing Gerdau SA by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Gerdau SA to competition
FundamentalsGerdau SAPeer Average
Return On Equity0.3-0.31
Return On Asset0.15-0.14
Profit Margin0.16 %(1.27) %
Operating Margin0.22 %(5.51) %
Current Valuation54.97 B16.62 B
Shares Outstanding571.93 M571.82 M
Shares Owned By Insiders97.54 %10.09 %
Shares Owned By Institutions1.05 %39.21 %
Price To Earning8.75 X28.72 X
Price To Book0.87 X9.51 X
Price To Sales0.56 X11.42 X
Revenue78.35 B9.43 B
Gross Profit20.82 B27.38 B
EBITDA23.93 B3.9 B
Net Income15.49 B570.98 M
Cash And Equivalents2.57 B2.7 B
Cash Per Share1.51 X5.01 X
Total Debt12.92 B5.32 B
Debt To Equity60.10 %48.70 %
Current Ratio1.89 X2.16 X
Book Value Per Share29.47 X1.93 K
Cash Flow From Operations12.52 B971.22 M
Earnings Per Share8.05 X3.12 X
Target Price19.0
Number Of Employees30 K18.84 K
Beta1.22-0.15
Market Capitalization46.14 B19.03 B
Total Asset73.81 B29.47 B
Z Score2.88.72
Annual Yield0.15 %
Five Year Return2.62 %
Net Asset73.81 B
Last Dividend Paid3.63

Gerdau SA Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Gerdau . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Gerdau SA Buy or Sell Advice

When is the right time to buy or sell Gerdau SA? Buying financial instruments such as Gerdau Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Gerdau SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Iron Thematic Idea Now

Iron
Iron Theme
Companies involved in production of steel and iron. The Iron theme has 47 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Iron Theme or any other thematic opportunities.
View All  Next Launch
Check out Gerdau SA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note that the Gerdau SA information on this page should be used as a complementary analysis to other Gerdau SA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for Gerdau Stock analysis

When running Gerdau SA's price analysis, check to measure Gerdau SA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gerdau SA is operating at the current time. Most of Gerdau SA's value examination focuses on studying past and present price action to predict the probability of Gerdau SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gerdau SA's price. Additionally, you may evaluate how the addition of Gerdau SA to your portfolios can decrease your overall portfolio volatility.
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Please note, there is a significant difference between Gerdau SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gerdau SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gerdau SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.