Yahoo Finance Reliance Steel (RS) Dips More Than Broader Markets: What You Should Know
Reliance Steel (RS) closed the most recent trading day at $239.39, moving -0.95% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the metals service-center company had lost 0.77% in the past month. In that same time, the Industrial Products sector gained 2.92%, while the S&P 500 gained 4.14%.
Reliance Steel will be looking to display strength as it nears its next earnings release. In that report, analysts expect Reliance Steel to post earnings of $6.59 per share. This would mark a year-over-year decline of 27.98%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.86 billion, down 17.57% from the year-ago period.
RS's full-year Zacks Consensus Estimates are calling for earnings of $22.07 per share and revenue of $14.6 billion. These results would represent year-over-year changes of -26.51% and -14.26%, respectively.
It is also important to note the recent changes to analyst estimates for Reliance Steel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.07% higher. Reliance Steel is currently a Zacks Rank #3 (Hold).
In terms of valuation, Reliance Steel is currently trading at a Forward P/E ratio of 10.95. Its industry sports an average Forward P/E of 12.08, so we one might conclude that Reliance Steel is trading at a discount comparatively.
The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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
