Ryerson Holding (RYI) Gains But Lags Market: What You Should Know
In the latest trading session, Ryerson Holding (RYI) closed at $33.02, marking a +0.49% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the metal products distributor and processor had gained 35.9% over the past month. This has outpaced the Basic Materials sector's gain of 2.89% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Ryerson Holding as it approaches its next earnings report date. This is expected to be November 2, 2022. On that day, Ryerson Holding is projected to report earnings of $2.47 per share, which would represent a year-over-year decline of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, down 5.38% from the prior-year quarter.
RYI's full-year Zacks Consensus Estimates are calling for earnings of $13 per share and revenue of $6.23 billion. These results would represent year-over-year changes of +74.26% and +9.77%, respectively.
Any recent changes to analyst estimates for Ryerson Holding should also be noted by investors. These revisions help to show the ever-changing nature of near-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. Within the past 30 days, our consensus EPS projection remained stagnant. Ryerson Holding is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Ryerson Holding is currently trading at a Forward P/E ratio of 2.53. Its industry sports an average Forward P/E of 3.43, so we one might conclude that Ryerson Holding is trading at a discount comparatively.
The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 9% 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.
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