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Should Value Investors Buy Reliance Steel & Aluminum Co. (RS) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Reliance Steel & Aluminum Co. (RS - Free Report) . RS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.78, which compares to its industry's average of 15.67. Over the past 52 weeks, RS's Forward P/E has been as high as 14.90 and as low as 11.15, with a median of 13.28.
Finally, investors should note that RS has a P/CF ratio of 10.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RS's P/CF compares to its industry's average P/CF of 28.74. Over the past year, RS's P/CF has been as high as 10.14 and as low as 6.19, with a median of 8.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Reliance Steel & Aluminum Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RS feels like a great value stock at the moment.
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Should Value Investors Buy Reliance Steel & Aluminum Co. (RS) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Reliance Steel & Aluminum Co. (RS - Free Report) . RS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.78, which compares to its industry's average of 15.67. Over the past 52 weeks, RS's Forward P/E has been as high as 14.90 and as low as 11.15, with a median of 13.28.
Finally, investors should note that RS has a P/CF ratio of 10.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RS's P/CF compares to its industry's average P/CF of 28.74. Over the past year, RS's P/CF has been as high as 10.14 and as low as 6.19, with a median of 8.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Reliance Steel & Aluminum Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RS feels like a great value stock at the moment.