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Reliance Steel (RS) closed the most recent trading day at $173.24, moving +0.39% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.37%.
Heading into today, shares of the metals service-center company had lost 7.62% over the past month, outpacing the Industrial Products sector's loss of 11.44% and lagging the S&P 500's loss of 5.08% in that time.
Reliance Steel will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect Reliance Steel to post earnings of $9.02 per share. This would mark year-over-year growth of 78.26%. Meanwhile, our latest consensus estimate is calling for revenue of $4.58 billion, up 34.05% from the prior-year quarter.
RS's full-year Zacks Consensus Estimates are calling for earnings of $27.90 per share and revenue of $16.43 billion. These results would represent year-over-year changes of +26.13% and +16.59%, respectively.
Investors should also note any recent changes to analyst estimates for Reliance Steel. These revisions help to show the ever-changing nature of 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. 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 remained stagnant within the past month. Reliance Steel is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Reliance Steel currently has a Forward P/E ratio of 6.19. For comparison, its industry has an average Forward P/E of 5.43, which means Reliance Steel is trading at a premium to the group.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% 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.
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
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