Reliance Steel (RS) Gains As Market Dips: What You Should Know
In the latest trading session, Reliance Steel (RS) closed at $245.53, marking a +0.33% move from the previous day. This move outpaced the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.
Coming into today, shares of the metals service-center company had lost 0.5% in the past month. In that same time, the Industrial Products sector gained 0.48%, while the S&P 500 gained 7.71%.
Investors will be hoping for strength from Reliance Steel as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Reliance Steel to post earnings of $5.70 per share. This would mark a year-over-year decline of 32.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.95 billion, down 12.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.43 per share and revenue of $14.65 billion. These totals would mark changes of -28.64% and -13.94%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Reliance Steel. 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.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Reliance Steel is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Reliance Steel is holding a Forward P/E ratio of 11.42. This represents a no noticeable deviation compared to its industry's average Forward P/E of 11.42.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
