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Ryerson Holding (RYI) Outpaces Stock Market Gains: What You Should Know

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Ryerson Holding (RYI - Free Report) closed at $30.77 in the latest trading session, marking a +1.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.

Prior to today's trading, shares of the metal products distributor and processor had gained 1.58% over the past month. This has outpaced the Basic Materials sector's loss of 1.53% and the S&P 500's gain of 0.19% in that time.

Wall Street will be looking for positivity from Ryerson Holding as it approaches its next earnings report date. The company is expected to report EPS of $0.40, down 72.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.26 billion, down 18.31% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.30 per share and revenue of $5.11 billion, which would represent changes of -68.69% and -19.22%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Ryerson Holding. 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.

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 remained stagnant within the past month. Ryerson Holding is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Ryerson Holding has a Forward P/E ratio of 9.16 right now. This represents a premium compared to its industry's average Forward P/E of 8.28.

The Steel - Producers industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.

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