Reliance Steel (RS) Stock Sinks As Market Gains: What You Should Know
Reliance Steel (RS) closed at $254.85 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the metals service-center company had gained 7.57% in the past month. In that same time, the Industrial Products sector gained 8.46%, while the S&P 500 gained 6.1%.
Wall Street will be looking for positivity from Reliance Steel as it approaches its next earnings report date. This is expected to be July 27, 2023. On that day, Reliance Steel is projected to report earnings of $6.59 per share, which would represent a year-over-year decline of 27.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.86 billion, down 17.51% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for Reliance Steel. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.87% higher. Reliance Steel is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Reliance Steel is holding a Forward P/E ratio of 11.71. This valuation marks a discount compared to its industry's average Forward P/E of 12.47.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% 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.
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
