E Daily Stock Pick: Gerdau (GGB)

This week, I'm looking for the sixth basic materials representative of nine for my Ivy portfolio.

The materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; steel; paper; silver; specialty chemicals; gold.

Today I'm reviewing a mid-cap steel company named Gerdau SA. Their trading ticker symbol is GGB

  • Gerdau SA produces steel and steel products. It operates in civil construction, agriculture, automotive, iron ore, exports, research and development, and home steel products sectors.
  • It offers products such as nails, rebar, columns, billets, slabs, piatina, tribar tutor, mechanical construction bars, reinforced steel locks.
  • The company has operations in Asia, the Americas, and Europe. It mainly distributes its products in North America and Brazil.
  • It sells its products through independent distributors, direct sales from the mills, and its retail network.
  • The company was founded in 1901 and is based in Sao Paulo, Brazil. Gerdau S.A. is a subsidiary of Metalúrgica Gerdau S.A.

I use three key data points to gauge GGB:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest. Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

GGB Price

Gerdau's price per share closed at $3.63 Friday. A year ago its price was $3.72. Price fell $0.09 or over  2.4% in the past year. Assuming Gerdau's stock trades in the range of $3.00 to $5.00 this year, Gerdau's recent $3.63 price could rise by $0.87 and go to $4.50 by mid-June, 2020.

GGB Dividends

Gerdau's most recent quarterly dividend was $0.018 declared May 1st and paid June 5th. That $0.018 Q payout equates to an annual dividend of $0.072 which produces a  yield of 1.98% based on yesterday's $3.63 closing price.

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This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation ...

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