Down -19.65% in 4 Weeks, Here's Why Gerdau (GGB) Looks Ripe for a Turnaround

Core Viewpoint - Gerdau (GGB) has experienced significant selling pressure, resulting in a 19.7% decline over the past four weeks, but analysts anticipate a potential earnings rebound as the stock is now in oversold territory [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) for GGB is currently at 29.9, indicating that the stock is oversold and may be nearing a price reversal [3][4]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically signaling an oversold condition [3]. Group 2: Fundamental Analysis - Over the last 30 days, the consensus earnings per share (EPS) estimate for GGB has increased by 33.6%, suggesting a positive outlook for the company's earnings [4]. - GGB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating strong potential for price appreciation [4].