Reliance Steel (RS) Gains But Lags Market: What You Should Know
In the latest trading session, Reliance Steel (RS) closed at $271.59, marking a +0.29% move from the previous day. The stock lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the metals service-center company had gained 16.62% over the past month. This has outpaced the Industrial Products sector's gain of 10.67% and the S&P 500's gain of 4.67% in that time.
Reliance Steel will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. In that report, analysts expect Reliance Steel to post earnings of $6.55 per share. This would mark a year-over-year decline of 28.42%. Meanwhile, our latest consensus estimate is calling for revenue of $3.96 billion, down 15.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.65 per share and revenue of $14.81 billion. These totals would mark changes of -24.58% and -13.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Reliance Steel. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.51% higher. Reliance Steel is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Reliance Steel is currently trading at a Forward P/E ratio of 11.96. For comparison, its industry has an average Forward P/E of 12.86, which means Reliance Steel is trading at a discount to the group.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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
