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Gerdau Misses Q3 Earnings Forecast; Revenue Sees Positive Growth

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 11/21/2025, 4:41 pm ET 11/21/2025, 4:41 pm ET | 5 min 5 min read
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Gerdau S.A.’s stocks have been trading up by 5.03 percent following positive sentiment on strategic expansion and innovation efforts.

Materials industry expert:

Analyst sentiment – negative

Gerdau (GGB) demonstrates a robust market position with a pre-tax profit margin of 16.5 and a price-to-book ratio of 0.65, indicating the stock’s undervaluation. The company reported substantial revenue of BRL 68.92 billion, reflecting its capacity to generate significant sales despite market fluctuations. However, the challenges include a revenue decline over the past three and five years, suggesting an urgent need to revitalize its growth strategy. The return on equity of 11.58 reflects an efficient management of equity capital, indicating favorable management effectiveness.

Technically, Gerdau’s stock displays a steady downtrend, with weekly closing prices dipping from 3.50 to 3.4056, indicating weakening investor sentiment. Given this downward momentum, traders should adopt a cautious approach, shorting the stock on rallies towards resistance levels near 3.50 and setting stop-loss orders slightly above this point to mitigate risk. The low price of 3.38 provides immediate support, signaling a critical level to watch for potential rebounds or breakdowns that could solidify the bearish outlook.

The recent earnings report indicates a mixed performance for Gerdau. Despite increased net sales that exceeded analyst expectations, the drop in earnings per share to 0.54 Brazilian real, against the forecast of 0.61, reveals underlying profitability issues. This performance, contrasted with the broader Materials and Steel industry trends, underscores a need for cautious optimism. Looking ahead, Gerdau must strategically leverage its sales growth to improve profitability and adjust to evolving market dynamics. Critical resistance lies at 3.50, with downside risk towards support at 3.38. Overall, the sentiment is currently negative, necessitating decisive managerial action to alter the trajectory.

Candlestick Chart

Weekly Update Nov 17 – Nov 21, 2025: On Friday, November 21, 2025 Gerdau S.A. stock [NYSE: GGB] is trending up by 5.03%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Gerdau showed a mixed financial performance in the third quarter. While net sales climbed to 17.98 billion reais, marking a growth from the previous year’s 17.38 billion reais, this positive swing on the revenue front was overshadowed by a dip in earnings per share from 0.64 to 0.54 reais. The anticipated upswing in earnings failed to materialize, missing analyst expectations widely pegged at 0.61 reais. This discrepancy stems from potentially interacting financial dynamics, including fluctuating market demands and possibly escalating operational costs.

More Breaking News

The provided key ratios show Gerdau managing a decent level of profitability, with a pretax profit margin holding at 16.5%. Meanwhile, the P/E ratio of 8.37 demonstrates an attractive valuation standing against the backdrop of a challenging operating environment. In the context of stock metrics, Gerdau’s share price fluctuated recently, reflecting volatile investor sentiment influenced by the mixed financial signals emitted by their earnings report. The leverage ratio of 1.5 indicates a relatively balanced approach to total debt management amid this complex fiscal environment.

Conclusion

Gerdau’s third quarter underscores a classic disparity commonly observed in industrial sectors. Revenue success reflects underlying operational competencies, yet the earnings shortfall suggests crucial areas require refining. The ability to convert sales prowess into tangible profit growth will be pivotal as analysts decode forward-looking potential amid present fluctuations. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” This principle rings true for Gerdau as well, as they navigate the complexities of maintaining stability and rational decision-making amidst the unpredictable nature of fluctuating market landscapes. Hence, while sales resilience impresses, it is the effective addressing of cost factors that will shape Gerdau’s path forward.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”