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Are Investors Undervaluing Reliance Steel & Aluminum Co. (RS) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Reliance Steel & Aluminum Co. (RS - Free Report) . RS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.85, while its industry has an average P/E of 12.28. RS's Forward P/E has been as high as 12.42 and as low as 6.65, with a median of 8.61, all within the past year.
Finally, we should also recognize that RS has a P/CF ratio of 5.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.22. Over the past year, RS's P/CF has been as high as 7.75 and as low as 4.93, with a median of 5.90.
These are only a few of the key metrics included in Reliance Steel & Aluminum Co.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RS looks like an impressive value stock at the moment.
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Are Investors Undervaluing Reliance Steel & Aluminum Co. (RS) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Reliance Steel & Aluminum Co. (RS - Free Report) . RS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.85, while its industry has an average P/E of 12.28. RS's Forward P/E has been as high as 12.42 and as low as 6.65, with a median of 8.61, all within the past year.
Finally, we should also recognize that RS has a P/CF ratio of 5.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.22. Over the past year, RS's P/CF has been as high as 7.75 and as low as 4.93, with a median of 5.90.
These are only a few of the key metrics included in Reliance Steel & Aluminum Co.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RS looks like an impressive value stock at the moment.