Back to top

Image: Bigstock

Has Reliance Steel (RS) Outpaced Other Industrial Products Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Reliance Steel (RS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.

Reliance Steel is a member of our Industrial Products group, which includes 223 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Reliance Steel is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for RS' full-year earnings has moved 12.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, RS has returned 32.1% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 13.8% on average. This means that Reliance Steel is outperforming the sector as a whole this year.

Another Industrial Products stock, which has outperformed the sector so far this year, is ScanSource (SCSC - Free Report) . The stock has returned 22.8% year-to-date.

For ScanSource, the consensus EPS estimate for the current year has increased 0.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Reliance Steel belongs to the Metal Products - Distribution industry, a group that includes 6 individual companies and currently sits at #110 in the Zacks Industry Rank. On average, stocks in this group have gained 42.6% this year, meaning that RS is slightly underperforming its industry in terms of year-to-date returns.

ScanSource, however, belongs to the Industrial Services industry. Currently, this 21-stock industry is ranked #152. The industry has moved -22.3% so far this year.

Investors interested in the Industrial Products sector may want to keep a close eye on Reliance Steel and ScanSource as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Reliance, Inc. (RS) - free report >>

ScanSource, Inc. (SCSC) - free report >>

Published in