15 Best NYSE Penny Stocks to Buy According to Hedge Funds

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

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.

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.