Reliance Steel And Aluminum (RS): Industrial Goods' Featured Underperformer Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Reliance Steel and Aluminum ( RS) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Reliance Steel and Aluminum fell $1.28 (-1.8%) to $68.28 on light volume. Throughout the day, 394,215 shares of Reliance Steel and Aluminum exchanged hands as compared to its average daily volume of 596,100 shares. The stock ranged in price between $68.10-$69.87 after having opened the day at $69.42 as compared to the previous trading day's close of $69.56. Other companies within the Industrial Goods sector that declined today were: Apogee ( APOG), down 11.1%, China Recycling Energy Corporation ( CREG), down 10.5%, Argan ( AGX), down 8.2%, and Euro Tech Holdings Company ( CLWT), down 7.5%.
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Reliance Steel & Aluminum Co. operates as a metals service center company. Reliance Steel and Aluminum has a market cap of $5.3 billion and is part of the industrial industry. The company has a P/E ratio of 13, below the S&P 500 P/E ratio of 17.7. Shares are up 12% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Reliance Steel and Aluminum a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates Reliance Steel and Aluminum as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Metalico ( MEA), up 17.5%, Adept Technology ( ADEP), up 10.1%, Research Frontiers ( REFR), up 9.2%, and Tri-Tech ( TRIT), up 8.9%, were all gainers within the industrial goods sector with Masco Corporation ( MAS) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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