5-Star Stocks Poised to Pop: Reliance Steel

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, metal processor Reliance Steel & Aluminum (NYSE: RS  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Reliance Steel's business and see what CAPS investors are saying about the stock right now.

Reliance Steel facts

Headquarters (founded) Los Angeles (1939)
Market Cap $4.2 billion
Industry Steel
Trailing-12-Month Revenue $8.7 billion
Management Chairman/CEO David Hannah
President/COO Gregg Mollins
Return on Equity (average, past 3 years) 10.4%
Cash/Debt $93.6 million / $1.5 billion
Dividend Yield 1.8%
Competitors Metals USA Holdings
Ryerson Holding
Worthington Industries

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 571 members who have rated Reliance Steel believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star coryjobe, kindly updated our community on the Reliance Steel opportunity:

They continue to expand through acquisitions. In July they acquired Australia-based [Airport Metals]. This purchase was made to enhance the newly formed Bralco Metals business. Stronger volume helped boost the top line and leveraged profits in the first half of 2012. Although pricing has come under some pressure of late, tons sold have risen nicely thanks to high demand for carbon steel, among other products.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Reliance Steel may not be your top choice.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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