Topic: How To Invest

Power Growth Investor Hotline – Friday, February 18, 2022

Article Excerpt

RUSSEL METALS INC., $33.44, 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 December 31, 2021, jumped 70.9%, to $1.15 billion from $671 million a year earlier. That reflects the improving economy and higher oil prices. (Russel supplies pipes to oil and gas drillers.) Excluding one-time items, the company earned $133.1 million, or $1.65 a share. That was up sharply from $13.8 million, or $0.22. The company’s balance sheet is sound. As of December 31, 2021, Russel held cash of $133.1 million, and its long-term debt of $294.8 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: December 2021…