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Are Investors Undervaluing Reliance Steel (RS) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Reliance Steel (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 13.65, which compares to its industry's average of 16.71. Over the last 12 months, RS's Forward P/E has been as high as 14.05 and as low as 7.26, with a median of 10.59.
RS is also sporting a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RS's PEG compares to its industry's average PEG of 1.67. Within the past year, RS's PEG has been as high as 1.56 and as low as 0.81, with a median of 1.18.
Finally, investors will want to recognize that RS has a P/CF ratio of 9.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RS's P/CF compares to its industry's average P/CF of 28.22. Over the past year, RS's P/CF has been as high as 9.74 and as low as 4.76, with a median of 7.37.
These are just a handful of the figures considered in Reliance Steel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RS is an impressive value stock right now.
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Are Investors Undervaluing Reliance Steel (RS) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Reliance Steel (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 13.65, which compares to its industry's average of 16.71. Over the last 12 months, RS's Forward P/E has been as high as 14.05 and as low as 7.26, with a median of 10.59.
RS is also sporting a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RS's PEG compares to its industry's average PEG of 1.67. Within the past year, RS's PEG has been as high as 1.56 and as low as 0.81, with a median of 1.18.
Finally, investors will want to recognize that RS has a P/CF ratio of 9.72. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RS's P/CF compares to its industry's average P/CF of 28.22. Over the past year, RS's P/CF has been as high as 9.74 and as low as 4.76, with a median of 7.37.
These are just a handful of the figures considered in Reliance Steel's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RS is an impressive value stock right now.