Reliance Steel (RS) Dips More Than Broader Markets: What You Should Know
Reliance Steel (RS) closed the most recent trading day at $252.43, moving -1.42% from the previous trading session. This move lagged the S&P 500's daily loss of 0.47%. Elsewhere, the Dow lost 0.72%, while the tech-heavy Nasdaq lost 5.08%.
Prior to today's trading, shares of the metals service-center company had gained 4.34% over the past month. This has lagged the Industrial Products sector's gain of 8.3% and the S&P 500's gain of 5.36% in that time.
Investors will be hoping for strength from Reliance Steel as it approaches its next earnings release, which is expected to be July 27, 2023. In that report, analysts expect Reliance Steel to post earnings of $6.59 per share. This would mark a year-over-year decline of 27.98%. Meanwhile, our latest consensus estimate is calling for revenue of $3.86 billion, down 17.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.07 per share and revenue of $14.6 billion. These totals would mark changes of -26.51% and -14.26%, respectively, from last year.
Any recent changes to analyst estimates for Reliance Steel should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.87% higher within the past month. Reliance Steel currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Reliance Steel is currently trading at a Forward P/E ratio of 11.6. This valuation marks a discount compared to its industry's average Forward P/E of 12.63.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
