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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 $273.28 in the latest trading session, marking a +1.06% move from the prior day. This change outpaced the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.

Coming into today, shares of the metals service-center company had gained 8.52% in the past month. In that same time, the Industrial Products sector gained 8.98%, while the S&P 500 gained 4.16%.

Wall Street will be looking for positivity from Reliance Steel as it approaches its next earnings report date. This is expected to be July 27, 2023. On that day, Reliance Steel is projected to report earnings of $6.54 per share, which would represent a year-over-year decline of 28.52%. Meanwhile, our latest consensus estimate is calling for revenue of $3.95 billion, down 15.55% from the prior-year quarter.

RS's full-year Zacks Consensus Estimates are calling for earnings of $22.68 per share and revenue of $14.8 billion. These results would represent year-over-year changes of -24.48% and -13.05%, respectively.

Any recent changes to analyst estimates for Reliance Steel should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.75% higher. Reliance Steel is currently a Zacks Rank #3 (Hold).

Investors should also note Reliance Steel's current valuation metrics, including its Forward P/E ratio of 11.92. Its industry sports an average Forward P/E of 12.76, so we one might conclude that Reliance Steel is trading at a discount comparatively.

The Metal Products - Distribution industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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