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Reliance Steel (RS) Outpaces Stock Market Gains: What You Should Know

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Reliance Steel (RS - Free Report) closed the most recent trading day at $209.71, moving +1.95% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.

Prior to today's trading, shares of the metals service-center company had gained 0.48% over the past month. This has lagged the Industrial Products sector's gain of 2.5% and outpaced the S&P 500's loss of 0.94% in that time.

Investors will be hoping for strength from Reliance Steel as it approaches its next earnings release. In that report, analysts expect Reliance Steel to post earnings of $4.47 per share. This would mark a year-over-year decline of 34.55%. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, down 8.45% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 5.62% higher within the past month. Reliance Steel is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Reliance Steel is currently trading at a Forward P/E ratio of 11.46. This valuation marks a premium compared to its industry's average Forward P/E of 10.34.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 16, which puts 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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