5. Gerdau ( GGB) is an integrated steel player operating in Brazil, North America and Latin America. On average, analysts expect the company to deliver net profit growth of around 10% in 2011, riding on the back of improving fundamentals. Net revenue increased 18% year-over-year during the latest first quarter, backed by improved sales. However, higher production costs dented profitability year-over-year, while margins increased sequentially. Gross margin stood at 13.9% and EBITDA margin increased to 13.2% for the quarter. To consolidate its growth plans, Gerdau recently announced the acquisition of Acos Villares, a company engaged in the production of long steel. The proportion of North American sales increased to 35% in overall sales during the quarter, while domestic sales declined. The stock is trading at 13.5 times its 2011 earnings and analysts expect an upside of 42%, with a buy rating of 56%.