|Contributor / Partner
Strategy published on : 11/19/2020 | 03:21
Entry price : 20.97BRL
Target : 23.5BRL
Stop-loss : 19.5BRL
Potential : 12.06%
Gerdau S.A.'s shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Investors have an opportunity to buy the stock and target the BRL 23.5.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● As regards fundamentals, the enterprise value to sales ratio is at 1.13 for the current period. Therefore, the company is undervalued.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the past twelve months, EPS forecast has been revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 14.71 BRL
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The group usually releases earnings worse than estimated.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.