Reliance Steel & Alu
RS
Delayed Nyse - 05/24 10:02:02 pm
73.25USD
-1.32%

A good timing to anticipate a change in the trend

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Anas Lozach
 

Strategy published on : 04/20/2017 | 14:23

long trade
Target price hit

Entry price : 76.09$
Target : 81.5$
Stop-loss : 73$
Potential : 7.11%

The recent downside mouvement appears to lose momentum which could allow Reliance Steel & Aluminum Co shares to regain a positive medium term outlook.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

● The stock, which is currently worth 2017 to 0.74 times its sales, is clearly overvalued in comparison with peers.

● With a P/E ratio at 13.41 for the current year and 12.26 for next year, earnings multiples are highly attractive compared with competitors.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Zonebourse.com 2017
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