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Reliance Steel (RS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Reliance Steel (RS - Free Report) closed at $215.79, marking a -0.24% move from the previous day. This change lagged the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq lost 3.22%.

Heading into today, shares of the metals service-center company had gained 5.8% over the past month, outpacing the Industrial Products sector's gain of 3.75% and the S&P 500's gain of 4.64% in that time.

Reliance Steel will be looking to display strength as it nears its next earnings release. On that day, Reliance Steel is projected to report earnings of $4.47 per share, which would represent a year-over-year decline of 34.55%. Meanwhile, our latest consensus estimate is calling for revenue of $3.65 billion, down 8.45% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Reliance Steel. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 5.62% higher within the past month. Reliance Steel is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Reliance Steel has a Forward P/E ratio of 12.05 right now. This represents a premium compared to its industry's average Forward P/E of 11.15.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RS in the coming trading sessions, be sure to utilize Zacks.com.


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