Reliance Steel And Aluminum (RS): Today's Featured Industrial Laggard

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 industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Reliance Steel and Aluminum fell $0.77 (-1.1%) to $67.91 on light volume. Throughout the day, 274,253 shares of Reliance Steel and Aluminum exchanged hands as compared to its average daily volume of 606,200 shares. The stock ranged in price between $67.86-$68.58 after having opened the day at $68.33 as compared to the previous trading day's close of $68.68. Other companies within the Industrial industry that declined today were: Research Frontiers ( REFR), down 7.4%, IntriCon Corporation ( IIN), down 6.3%, Arotech Corporation ( ARTX), down 5.1% and Proto Labs ( PRLB), down 3.7%.
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Reliance Steel & Aluminum Co. operates as a metals service center company. Reliance Steel and Aluminum has a market cap of $5.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.6% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Reliance Steel and Aluminum a buy, 1 analyst rates it a sell, and 3 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, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Ecotality ( ECTY), down 19.2%, Kubota Corporation ( KUB), down 12.9%, Adept Technology ( ADEP), down 11.9% and ZBB Energy Corporation ( ZBB), down 11.2% , were all gainers within the industrial industry with 3D Systems Corporation ( DDD) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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