Reliance Steel (RS) Gains But Lags Market: What You Should Know
In the latest trading session, Reliance Steel (RS) closed at $256.83, marking a +0.04% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the metals service-center company had lost 2.56% over the past month, lagging the Industrial Products sector's loss of 0.88% and the S&P 500's gain of 3.71% in that time.
Reliance Steel will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2023. The company is expected to report EPS of $4.47, down 46.91% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.41 per share and revenue of $14.65 billion, which would represent changes of -28.7% and -13.93%, respectively, from the prior year.
Any recent changes to analyst estimates for Reliance Steel should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.64% higher within the past month. Reliance Steel is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that Reliance Steel has a Forward P/E ratio of 11.99 right now. Its industry sports an average Forward P/E of 11.99, so we one might conclude that Reliance Steel is trading at a no noticeable deviation comparatively.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow RS in the coming trading sessions, be sure to utilize Zacks.com.
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Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
