Gerdau S.A. (NYSE:GGB) is one of the 15 best NYSE penny stocks to buy according to hedge funds.
As of the close of play on July 7, Gerdau S.A. (NYSE:GGB) carried a moderately bullish consensus sentiment. Based on a median 1-year price target of $5.63, the stock yields more than 28% upside potential for investors.
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On June 25, JPMorgan increased its target price for Gerdau S.A. (NYSE:GGB) from $5.50 to $6, resulting in an adjusted upside potential in excess of 36% at the prevailing level. The firm reiterated an Overweight rating on the stock.
Earlier on June 22, Gerdau S.A. (NYSE:GGB) announced that it entered into an agreement to purchase a 23.03% stake held by Companhia Paranaense de Energia (Copel) in Dona Francisca Energĩ S.A. This will result in the company’s 100% ownership of the hydropower company, located in Rio Grande do Sul.
The deal values DFESA at around 150 million Reais, equivalent to $27 million. Gerdau will finance the acquisition with its own funds, subject to customary approvals by relevant authorities. The agreement also entails Copel giving up its pre-emptive rights on another transaction, which involves utility company Celesc.
Gerdau S.A. (NYSE:GGB) produces steel and operates across various locations. It also deals in various other products such as rebars, bars, wire, thick plate, hot-rolled coil, and specialty steels for the agricultural, automotive, construction, and industrial markets.
While we acknowledge the risk and potential of GGB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GGB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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