The Drama Surrounding Gerdau S.A. (GGB), FMC Corporation (FMC)

A look at GGB technical analysis shows that its 14-day Relative Strength Index (RSI) is in a neutral zone after reaching 52.24 point. Its trading volume has lost -1916015 shares compared to readings over the past three months as it recently exchanged 9483985 shares. This means there is reduced activity from short-term traders as per session, its average trading volume is 11400000 shares, and this is 0.83 times the normal volume.

Gerdau S.A. (NYSE:GGB) dipped by -2.78% over the past three months which led to its overall six-month increase to stand at 2.41%. The equity price sank -3.46% this week, a trend that has led to both investors and traders taking note of the stock. A look at its monthly performance shows that its shares have recorded a 1.21% gain over the past 30 days. Over the past 12 months the stock has embarked on a drop that has seen it decline -0.93% and is now up by 11.44% since start of this year.

The shares of Gerdau S.A. dropped by -20.04% or -$1.05 from its last recorded high of $5.24 which it attained on June 03 to close at $4.19 per share. Over the past 52 weeks, the shares of Gerdau S.A. has been trading as low as $3.33 before witnessing a massive surge by 25.83% or $0.86. This price movement has led to the GGB stock receiving more attention and has become one to watch out for. It jumped by 1.95% on Tuesday and this got the market excited. The stock’s beta now stands at 2.09 and when compared to its 200-day moving average and its 50-day moving average, GGB price stands 2.15% above and 3.9% above respectively. Its average daily volatility for this week is 3.16% which is more than the 2.88% recorded over the past month.

Experts from research firms are bullish about the near-term performance of Gerdau S.A. (GGB) with most of them predicting a $5.67 price target on a short-term (12 months) basis. The average price target by the analysts will see a 35.32% rise in the stock and would lead to GGB’s market cap to surge to $9.3B. The stock has been rated an average 0, which roughly stands towards the bullish end of the spectrum. Reuters looked into the 3 analysts that track Gerdau S.A. (NYSE:GGB) and find out that 0 of them rated it as a Hold. 3 of the 3 analysts rated it as a Buy or a Strong Buy while 0 advised investors to desist from buying the stock or sell it if they already possess it.

The price of FMC Corporation (NYSE:FMC) currently stands at $82.26 after it went down by $-2.5 or -2.95% and has found a strong support at $80.66 a share. If the FMC price drops below that critical support, then it would lead to a bearish trend. In the short-term, a dip below the $79.06 mark would also be bad for the stock as it means that the stock would plunge by 3.89% from its current position. However, if the stock price is able to trade above the resistance point around $83.8, then it could likely surge higher to try and break the upward resistance which stands at $85.34 a share. Its average daily volatility over the past one month stands at 2.08%. The stock has plunged by 2.02% from its 52-weeks high of $80.6 which it reached on May. 18, 2018. In general, it is 15.68% above its 52-weeks lowest point which stands at $69.36 and this setback was observed on Dec. 26, 2018.

Analysts have predicted a price target for FMC Corporation (FMC) for 1 year and it stands at an average $100.56/share. This means that it would likely increase by 22.25% from its current position. The current price of the stock has been moving between $80.6 and $83.74. Some brokerage firms have a lower target for the stock than the average, with one of them setting a price target as low as $77. On the other hand, one analyst is super bullish about the price, setting a target as high as $118.

The FMC stock Stochastic Oscillator (%D) is at 77.38%, which means that it is currently neutral. The shares P/S ratio stands at 2.46 which compares to the 1.76 recorded by the industry or the 2.72 by the wider sector. The stock currently has an estimated price-earnings (P/E) multiple of 14.04, which is lower than the 20.06 multiple of 12-month price-earnings (P/E). The company’s earnings have gone down, with a quarterly decrease rate of -11.6% over the past five years.

Analysts view FMC Corporation (NYSE:FMC) as a Buy, with 2 consensus rating. Reuters surveyed 21 analysts that follow FMC and found that 3 of those analysts rated the stock as a Hold. The remaining 18 were divided, with 17 analyst rating it as a Buy or a Strong Buy while 1 analysts advised investors to desist from buying FMC Corporation (FMC) shares or sell it if they already own it.