Topic: How To Invest

Power Growth Investor Hotline – Friday, May 6, 2022

Article Excerpt

RUSSEL METALS INC., $32.90, is a buy. Through their shares, investors tap one of North America’s largest metal distributors: the company (symbol RUS on Toronto) serves 33,000 clients at 48 locations in Canada and 16 others in the U.S. Russel’s revenue in the three months ended March 31, 2022, jumped 51.2%, to $1.34 billion from $885.4 million a year earlier. That reflects the improving economy and higher oil prices. (Russel supplies pipes to oil and gas drillers.) The company earned $98.7 million, or $1.56 a share. That was up 22.5% from $80.6 million, or $1.29. The company’s balance sheet is sound. As of March 31, 2022, Russel held cash of $146.2 million, and its long-term debt of $295.1 million is a low 14% of its market cap. Since the third quarter of 2014, Russel has paid quarterly dividends of $0.38 a share; the annual rate of $1.52 yields a high 4.6%. Russel Metals is a buy. Russel Metals recent coverage: April 2022 issue Hotline for…