Reliance Steel & Aluminum Co. RS stated that it has acquired all the outstanding equity interests of Cooksey Iron & Metal Co. The terms of the deal were not disclosed.
Cooksey is a metals service center that processes and distributes finished steel products, including tubing, beams, plates and bars. Founded in 1917 and headquartered in Tifton, GA, it operates in Georgia, Florida, Alabama and South Carolina, serving a diverse range of customers such as trailer manufacturers, metal building fabricators, agricultural equipment manufacturers, structural fabricators, machine shops and others.
Cooksey will operate as a unit of Metals USA, Reliance Steel’s fully-owned subsidiary. The existing management team will remain in place. Cooksey’s annual net sales for the 12 months ending Dec 31, 2023, were approximately $90 million.
The addition of Cooksey boosts and increases Reliance Steel’s presence in the fast-growing Southeastern market, where the company is well-known for its premium customer service, high-quality products and swift delivery standards, all of which are in line with its model. Cooksey will also benefit from RS’ extensive knowledge across its business portfolio and investments to drive further expansion in its value-added processing capabilities.
Shares of Reliance Steel have gained 24.3% over the past year against a 2.7% decline of its industry.
Image Source: Zacks Investment Research
Reliance Steel, on its third-quarter call, said that it expects underlying demand to remain healthy in its end markets in the fourth quarter of 2023. The company anticipates year-over-year growth in tons sold, ranging from 3.5% to 5.5%. In line with typical seasonal patterns, a sequential decline of 4-6% is expected.
While Reliance Steel foresees that pricing for many products may reach or approach the lowest point in the current business cycle, with certain products stabilizing or experiencing modest increases, the company expects its average selling price per ton sold in the fourth quarter of 2023 to decrease 4% to 6% from the third quarter of 2023. The company predicts a temporary and modest reduction in its gross profit margin in the fourth quarter due to these declining price trends.
The company projects adjusted earnings per share in the range of $3.70-$3.90 for the fourth quarter.
Reliance Steel & Aluminum Co. Price and Consensus
Reliance Steel & Aluminum Co. price-consensus-chart | Reliance Steel & Aluminum Co. Quote
Zacks Rank & Key Picks
RS currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Cameco Corporation CCJ, Carpenter Technology Corporation CRS and Alpha Metallurgical Resources Inc. AMR.
Cameco, carrying a Zacks Rank #1 (Strong Buy), has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 79.7% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 22.8% in the past year.
The Zacks Consensus Estimate for AMR’s current-year earnings has been revised upward by 69% in the past 60 days. It currently carries a Zacks Rank #1. AMR delivered a trailing four-quarter earnings surprise of roughly 9.6%, on average. AMR shares are up around 152.3% in a year.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Cameco Corporation (CCJ) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.