7. Gerdau ( GGB) is an integrated steel player operating in Brazil, North America, and Latin America.

On average, analysts expect the company to deliver a net profit growth of around 10% in 2011, riding on the back of improving fundamentals.

Net revenue increased 20% year-over-year during the third quarter, backed by improved sales. However, higher production costs dented profitability. Gross income declined 7% during the period.

To consolidate its growth plans, Gerdau recently announced the acquisition of Acos Villares, a company engaged in the production of long-steel. Through this acquisition, Gerdau expects to increase its exposure in specialty steel. In August 2010, Gerdau had acquired Gerdau Ameristeel.

The stock is trading at 7-7.2 times its estimated 2011 enterprise value per EBITDA, compared to the peer average of 6-6.2 times. In addition, the company has a dividend yield of 1.7%.

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