Gerdau SA faces pressure amid cautious market sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 14 2025
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Should l Buy GGB?
Source: Coinmarketcap
Gerdau SA (GGB) is currently trading down approximately 3.09%, hitting a 20-day low amid a broader market decline, with the Nasdaq-100 down 0.70% and the S&P 500 down 0.63%.
The stock's performance reflects cautious market sentiment, as GGB is down about 4.6% in the non-precious and non-metallic mining sector. This decline is occurring despite varied analyst ratings that suggest potential for a rebound, indicating that investor sentiment is heavily influenced by the overall market conditions and competitor performance, such as Southern Copper Corp and Howmet Aerospace Inc, which are also experiencing declines.
The implications of this situation suggest that while GGB is facing short-term pressure, the diversity in analyst opinions may present contrarian opportunities for investors looking for potential rebounds in the future.
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Analyst Views on GGB
About GGB
Gerdau SA is a Brazil-based manufacturer of steel products. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Colombia, the United States, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. The Firm’s product portfolio includes crude steel; finished products for the construction industry, such as rebar, wire-rods, structural shapes, hot-rolled coils and heavy plates; finished industrial products, such as commercial rolled-steel bars, light profiles and wires; agricultural products, such as stakes, smooth wire and barbed-wire; and special steel items. The Company’s activities include also operations of iron ore mines located in the state of Minas Gerais.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gerdau SA Reports Strong Q1 Results with 50% Net Income Increase
- Significant Performance Growth: Gerdau SA reported strong results in North America, achieving the best adjusted EBITDA since 2022, with consolidated net income reaching BRL 1 billion, a 50% increase from the previous quarter, demonstrating the company's robust competitive position in the market.
- Launch of Low-Carbon Product: The introduction of Gerdau New Eco, a low-carbon steel solution, expands the product portfolio while reducing carbon footprint, aligning with global sustainability demands and likely attracting environmentally conscious customers.
- Investment Project Plans: Gerdau plans to complete significant projects by the end of 2026, potentially adding nearly BRL 1.5 billion to annual EBITDA, indicating a proactive approach to future growth opportunities.
- Challenges in Brazilian Market: Despite strong performance in North America, the Brazilian market faces pressure from excessive steel imports, impacting profitability, and a notable decline in apparent consumption of long steel products is affecting overall performance.
See More
Gerdau Declares Quarterly Dividend of $0.0361
- Quarterly Dividend Announcement: Gerdau has declared a quarterly dividend of $0.0361 per share, indicating the company's ongoing cash flow and profitability, which is likely to attract more investor interest in its stock performance.
- Payment Date Schedule: The dividend will be payable on June 16, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders receive their returns promptly and boosting shareholder confidence.
- Dividend Growth Potential: Gerdau's strong dividend growth reflects its robust operations and profitability in the steel industry, potentially appealing to investors seeking stable income.
- Rating Change Impact: The upgrade of Gerdau's rating in contrast to Ternium's downgrade highlights increased market confidence in Gerdau, which may positively influence its stock price.
See More
Bank of America Upgrades Ternium to Buy with $47.50 Target
- Rating Upgrade: Bank of America upgraded Ternium from Neutral to Buy with a price target increase from $46 to $47.50, reflecting optimism about stronger-than-expected North American flat steel pricing, which is expected to drive the company's stock price higher.
- Capital Spending Inflection: Analysts highlighted that 2027 marks a capital spending inflection point for Ternium, as the completion of the Pesquería expansion is projected to yield approximately 10% free cash flow, enhancing the company's financial health and investment appeal.
- Trade Policy Beneficiary: Ternium is seen as a primary beneficiary of a potential USMCA renegotiation, which could lead to exemptions from U.S. tariffs, thereby further enhancing its market competitiveness and profitability.
- Industry Comparison: Bank of America also reiterated its Buy rating on Gerdau, noting its strong performance in North America and a backlog of approximately 90 days, indicating the company's relative strength in the industry.
See More
Gerdau Upgraded, Ternium Downgraded Amid Global Steel Market Turmoil
- Gerdau Upgrade: Scotiabank upgraded Gerdau (GGB) from Sector Perform to Sector Outperform, as analyst Alfonso Salazar sees an attractive risk/reward profile, expecting strong North American results bolstered by effective steel tariffs protecting domestic producers.
- Free Cash Flow Outlook: Salazar estimates Gerdau's (GGB) free cash flow yield will average 12.1% from 2026 to 2028, with improved generation as investments in Brazil and North America decline, leading to attractive shareholder distributions through dividends and buybacks.
- Ternium Downgrade: In contrast, Scotiabank downgraded Ternium (TX) from Sector Outperform to Sector Perform, citing a lack of conditions for a swift renegotiation of the USMCA agreement and concerns that U.S. steel tariffs from the Trump administration may persist.
- Market Uncertainty: The ongoing uncertainty surrounding USMCA may lead to questions about the economics of Ternium's (TX) investments in Mexico, as the benefits from increased integration could take longer than anticipated to materialize, dampening expectations for new investments.
See More
T. Rowe Elevates Stake in Brazil's Gerdau to 5.01% of Preferred Shares, According to Filing
- Stake Increase: T. Rowe Price has increased its stake in Gerdaus, now holding 5.01% of the preferred shares.
- Filing Announcement: The increase in stake was disclosed through a regulatory filing.
See More
GERDAU Files Form 20-F for Fiscal Year 2025
- Filing Announcement: On March 13, 2026, GERDAU S.A. filed its Form 20-F for the fiscal year ending December 31, 2025, with the SEC and CVM, ensuring compliance and enhancing transparency for stakeholders.
- Investor Relations Focus: The document is accessible on the company's Investor Relations website, reflecting GERDAU's commitment to investor communication and aiming to bolster investor confidence and market reputation.
- Free Copy Requests: Shareholders can request a free copy of the Form 20-F by contacting the Investor Relations team via email, demonstrating the company's dedication to shareholder rights and service commitment.
- Regulatory Compliance: This filing meets SEC and CVM regulatory requirements, reinforcing the company's compliance in international markets and enhancing its credibility and attractiveness in the capital markets.
See More
Gerdau SA Reports Strong Q1 Results with 50% Net Income Increase
- Significant Performance Growth: Gerdau SA reported strong results in North America, achieving the best adjusted EBITDA since 2022, with consolidated net income reaching BRL 1 billion, a 50% increase from the previous quarter, demonstrating the company's robust competitive position in the market.
- Launch of Low-Carbon Product: The introduction of Gerdau New Eco, a low-carbon steel solution, expands the product portfolio while reducing carbon footprint, aligning with global sustainability demands and likely attracting environmentally conscious customers.
- Investment Project Plans: Gerdau plans to complete significant projects by the end of 2026, potentially adding nearly BRL 1.5 billion to annual EBITDA, indicating a proactive approach to future growth opportunities.
- Challenges in Brazilian Market: Despite strong performance in North America, the Brazilian market faces pressure from excessive steel imports, impacting profitability, and a notable decline in apparent consumption of long steel products is affecting overall performance.
See More
Gerdau Declares Quarterly Dividend of $0.0361
- Quarterly Dividend Announcement: Gerdau has declared a quarterly dividend of $0.0361 per share, indicating the company's ongoing cash flow and profitability, which is likely to attract more investor interest in its stock performance.
- Payment Date Schedule: The dividend will be payable on June 16, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders receive their returns promptly and boosting shareholder confidence.
- Dividend Growth Potential: Gerdau's strong dividend growth reflects its robust operations and profitability in the steel industry, potentially appealing to investors seeking stable income.
- Rating Change Impact: The upgrade of Gerdau's rating in contrast to Ternium's downgrade highlights increased market confidence in Gerdau, which may positively influence its stock price.
See More
Bank of America Upgrades Ternium to Buy with $47.50 Target
- Rating Upgrade: Bank of America upgraded Ternium from Neutral to Buy with a price target increase from $46 to $47.50, reflecting optimism about stronger-than-expected North American flat steel pricing, which is expected to drive the company's stock price higher.
- Capital Spending Inflection: Analysts highlighted that 2027 marks a capital spending inflection point for Ternium, as the completion of the Pesquería expansion is projected to yield approximately 10% free cash flow, enhancing the company's financial health and investment appeal.
- Trade Policy Beneficiary: Ternium is seen as a primary beneficiary of a potential USMCA renegotiation, which could lead to exemptions from U.S. tariffs, thereby further enhancing its market competitiveness and profitability.
- Industry Comparison: Bank of America also reiterated its Buy rating on Gerdau, noting its strong performance in North America and a backlog of approximately 90 days, indicating the company's relative strength in the industry.
See More
Gerdau Upgraded, Ternium Downgraded Amid Global Steel Market Turmoil
- Gerdau Upgrade: Scotiabank upgraded Gerdau (GGB) from Sector Perform to Sector Outperform, as analyst Alfonso Salazar sees an attractive risk/reward profile, expecting strong North American results bolstered by effective steel tariffs protecting domestic producers.
- Free Cash Flow Outlook: Salazar estimates Gerdau's (GGB) free cash flow yield will average 12.1% from 2026 to 2028, with improved generation as investments in Brazil and North America decline, leading to attractive shareholder distributions through dividends and buybacks.
- Ternium Downgrade: In contrast, Scotiabank downgraded Ternium (TX) from Sector Outperform to Sector Perform, citing a lack of conditions for a swift renegotiation of the USMCA agreement and concerns that U.S. steel tariffs from the Trump administration may persist.
- Market Uncertainty: The ongoing uncertainty surrounding USMCA may lead to questions about the economics of Ternium's (TX) investments in Mexico, as the benefits from increased integration could take longer than anticipated to materialize, dampening expectations for new investments.
See More
T. Rowe Elevates Stake in Brazil's Gerdau to 5.01% of Preferred Shares, According to Filing
- Stake Increase: T. Rowe Price has increased its stake in Gerdaus, now holding 5.01% of the preferred shares.
- Filing Announcement: The increase in stake was disclosed through a regulatory filing.
See More
GERDAU Files Form 20-F for Fiscal Year 2025
- Filing Announcement: On March 13, 2026, GERDAU S.A. filed its Form 20-F for the fiscal year ending December 31, 2025, with the SEC and CVM, ensuring compliance and enhancing transparency for stakeholders.
- Investor Relations Focus: The document is accessible on the company's Investor Relations website, reflecting GERDAU's commitment to investor communication and aiming to bolster investor confidence and market reputation.
- Free Copy Requests: Shareholders can request a free copy of the Form 20-F by contacting the Investor Relations team via email, demonstrating the company's dedication to shareholder rights and service commitment.
- Regulatory Compliance: This filing meets SEC and CVM regulatory requirements, reinforcing the company's compliance in international markets and enhancing its credibility and attractiveness in the capital markets.
See More
