12 Best Strong Buy Penny Stocks to Invest In Now 

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6. Gerdau S.A. (NYSE:GGB)

Number of Hedge Fund Holders: 22

Gerdau S.A. (NYSE:GGB) is one of the best strong buy penny stocks to invest in now. Gerdau S.A. (NYSE:GGB) received a rating update from BTG Pactual on July 7. The firm upgraded the stock to Buy from Neutral, setting a price target of R$28 on the shares. For reference, in its financial results for fiscal Q1 2026, Gerdau S.A. (NYSE:GGB) reported that it closed the quarter with an adjusted EBITDA of R$3.0 billion, with an adjusted EBITDA margin of 17.7%. Adjusted net income for the quarter totaled R$1.0 billion between January and March, while net revenue reached R$16.7 billion and physical steel sales totaled 2.8 million tons.

The company further reported that results in the period were positively influenced by strong performance in North America, with the Brazilian market continuing to be affected by the excessive imports of steel. In fiscal Q1 2026, Gerdau S.A. (NYSE:GGB) invested R$1.1 billion, with 43% allocated to maintenance and 57% to expansion and technological modernization projects. The company’s investment plan for 2026 is estimated at R$4.7 billion.

Gerdau S.A. (NYSE:GGB) produces and commercializes steel products. The company’s operations are divided into the following segments: Brazil Operation, North America Operation, South Africa Operation, and Special Steels Operation.

While we acknowledge the potential of GGB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GGB and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Strong Buy Penny Stocks to Invest In Now.

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