Gerdau S.A (GGB) Gaining Due to North American Expansion
Key takeaways
- Gerdau S.A (GGB) Gaining Due to North American Expansion Talha Qureshi Sun, June 21, 2026 at 1:53 AM GMT+7 2 min read GGB Gerdau S.A.
- The improvement in share price is partly driven by expanding North American operations.
- Notably, the North American segment delivered its best performance since 2022, driven by strong data center demand.
Gerdau S.A (GGB) Gaining Due to North American Expansion Talha Qureshi Sun, June 21, 2026 at 1:53 AM GMT+7 2 min read GGB Gerdau S.A. (NYSE:GGB) is one of the Best Undervalued Stocks to Buy Under $5. Gerdau S.A. (NYSE:GGB) has gained more than 5% since its fiscal Q1 2026 earnings and more than 25% over the past 6 months. It is also undervalued with a forward price to earnings ratio of 8, below the sector average of 16.76.
The improvement in share price is partly driven by expanding North American operations. Wall Street expects a modest 6.2% upside from the current levels. On April 28, the company released its fiscal Q1 2026 earnings. During the quarter, the company reported adjusted EPS of R$0.51, which missed the estimates of R$0.676. The revenue came in at R$16.72 billion, slightly below the expectations of R$17.06 billion.
Notably, the North American segment delivered its best performance since 2022, driven by strong data center demand. The segment accounted for more than 75% to the total adjusted EBITDA of R$3 billion. The company maintained its 2026 CapEx guidance at R$4.7 billion and expects to generate positive free cash flow throughout the year.