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Reliance Steel (RS) Gains As Market Dips: What You Should Know

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Reliance Steel (RS - Free Report) closed at $256.26 in the latest trading session, marking a +0.03% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 3.64%.

Heading into today, shares of the metals service-center company had gained 4.62% over the past month, outpacing the Industrial Products sector's loss of 5.06% and the S&P 500's gain of 0.07% in that time.

Wall Street will be looking for positivity from Reliance Steel as it approaches its next earnings report date. This is expected to be April 27, 2023. The company is expected to report EPS of $5.69, down 32.42% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.41 per share and revenue of $14.65 billion. These totals would mark changes of -28.7% and -13.93%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Reliance Steel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 4.16% higher within the past month. Reliance Steel is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Reliance Steel has a Forward P/E ratio of 11.97 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 11.97.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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