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Reliance Stock Gains 30% in 3 Months: What's Driving the Rally?
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Key Takeaways
Reliance shares rose 30.3% in the past 3 months, outperforming the industry's 0.4% rise.
RS is benefiting from demand in infrastructure, data centers, energy and manufacturing markets.
RS expanded processing capabilities through acquisitions and ended Q1 with $249.7M in cash.
Reliance, Inc. (RS - Free Report) shares have rallied 30.3% in the past three months. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 0.4% growth over the same time frame.
The rally was driven by record quarterly tons sold, strong earnings growth and continued market-share gains, with shipments outperforming industry trends.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving RS stock.
Growth Investments Strengthen Market Position for RS
Reliance reported tons sold of 1.673 million tons in the first quarter of 2026, up 9.4% sequentially and 2.7% year over year. The company stated that it has now outperformed industry shipment trends for 13 consecutive quarters, underscoring the strength of its operating model and customer relationships.
Reliance is benefiting from strong demand in the non-residential construction market, its largest end market by volume. Demand improved in the first quarter of 2026, driven by public infrastructure projects, heavy civil construction, data centers, energy infrastructure and manufacturing activity.
Through its AMI Metals subsidiary, the company also secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. In addition, demand for its toll processing services in the automotive sector has remained steady, supported by recent capacity investments and operational flexibility. The company is also seeing improving demand from semiconductor, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those linked to small modular reactor programs.
Reliance continues to strengthen its growth profile through acquisitions aimed at expanding its geographic reach, product offerings and value-added processing capabilities. Major acquisitions, including Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, have enhanced its service center network, diversified its end markets and broadened its exposure to higher-margin products.
More recent acquisitions such as Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy further support the company’s strategy of investing in high-quality businesses, expanding its processing capabilities and increasing its presence in attractive growth markets across the United States.
RS ended the first quarter of 2026 with cash and cash equivalents of $249.7 million, up from $216.6 million sequentially. The increase was supported by record shipment volumes and healthy profitability during the quarter.
RS’s Zacks Rank & Other Key Picks
RS currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Nexa Resources S.A. (NEXA - Free Report) , DPM Metals Inc. (DPMLF - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
The Zacks Consensus Estimate for NEXA’s current fiscal-year earnings is pinned at $2.67 per share, indicating a 214.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 59.9%. Its shares have surged 78.6% year to date.
The Zacks Consensus Estimate for DPMLF’s current-year earnings is pegged at $3.53 per share, indicating a year-over-year rise of 47.7%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 8.8%. DPMLF shares have plunged 15.2% year to date.
The Zacks Consensus Estimate for ASM’s current-year earnings stands at 39 cents per share, reflecting a 34.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise of 125%. ASM’s shares have rallied roughly 9.9% year to date.
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Reliance Stock Gains 30% in 3 Months: What's Driving the Rally?
Key Takeaways
Reliance, Inc. (RS - Free Report) shares have rallied 30.3% in the past three months. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 0.4% growth over the same time frame.
The rally was driven by record quarterly tons sold, strong earnings growth and continued market-share gains, with shipments outperforming industry trends.
Let’s take a look at the factors that are driving RS stock.
Growth Investments Strengthen Market Position for RS
Reliance reported tons sold of 1.673 million tons in the first quarter of 2026, up 9.4% sequentially and 2.7% year over year. The company stated that it has now outperformed industry shipment trends for 13 consecutive quarters, underscoring the strength of its operating model and customer relationships.
Reliance is benefiting from strong demand in the non-residential construction market, its largest end market by volume. Demand improved in the first quarter of 2026, driven by public infrastructure projects, heavy civil construction, data centers, energy infrastructure and manufacturing activity.
Through its AMI Metals subsidiary, the company also secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. In addition, demand for its toll processing services in the automotive sector has remained steady, supported by recent capacity investments and operational flexibility. The company is also seeing improving demand from semiconductor, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those linked to small modular reactor programs.
Reliance continues to strengthen its growth profile through acquisitions aimed at expanding its geographic reach, product offerings and value-added processing capabilities. Major acquisitions, including Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, have enhanced its service center network, diversified its end markets and broadened its exposure to higher-margin products.
More recent acquisitions such as Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy further support the company’s strategy of investing in high-quality businesses, expanding its processing capabilities and increasing its presence in attractive growth markets across the United States.
RS ended the first quarter of 2026 with cash and cash equivalents of $249.7 million, up from $216.6 million sequentially. The increase was supported by record shipment volumes and healthy profitability during the quarter.
RS’s Zacks Rank & Other Key Picks
RS currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Nexa Resources S.A. (NEXA - Free Report) , DPM Metals Inc. (DPMLF - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
At present, NEXA sports a Zacks Rank #1 (Strong Buy), while DPMLF and ASM carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NEXA’s current fiscal-year earnings is pinned at $2.67 per share, indicating a 214.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 59.9%. Its shares have surged 78.6% year to date.
The Zacks Consensus Estimate for DPMLF’s current-year earnings is pegged at $3.53 per share, indicating a year-over-year rise of 47.7%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 8.8%. DPMLF shares have plunged 15.2% year to date.
The Zacks Consensus Estimate for ASM’s current-year earnings stands at 39 cents per share, reflecting a 34.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise of 125%. ASM’s shares have rallied roughly 9.9% year to date.