Yahoo Finance Reliance Steel (RS) Outpaces Stock Market Gains: What You Should Know
Reliance Steel (RS) closed the most recent trading day at $245.95, moving +1.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Coming into today, shares of the metals service-center company had lost 3.12% in the past month. In that same time, the Industrial Products sector lost 7.58%, while the S&P 500 gained 3.13%.
Investors will be hoping for strength from Reliance Steel as it approaches its next earnings release, which is expected to be April 27, 2023. The company is expected to report EPS of $5.70, down 32.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, down 12.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $21.43 per share and revenue of $14.65 billion, which would represent changes of -28.64% and -13.94%, respectively, from the prior 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.74% higher. Reliance Steel is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Reliance Steel currently has a Forward P/E ratio of 11.29. For comparison, its industry has an average Forward P/E of 11.29, which means Reliance Steel is trading at a no noticeable deviation to the group.
The Metal Products - Distribution industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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
