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RS Shares Rise 23% in 6 Months: Here's What's Driving the Upside
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Reliance, Inc.’s (RS - Free Report) shares have rallied 23.2% in the past six months. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 2.8% growth over the same time frame.
The rally was driven by strong first-quarter results, including record quarterly tons sold, with shipments outperforming industry trends and significant acquisitions.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving RS stock.
RS Gains From Record Shipments and Acquisitions
Reliance reported first-quarter 2026 tons sold of roughly 1.673 million, up 9.4% sequentially and 2.7% year over year, marking its 13th consecutive quarter of outperforming industry shipment trends.
The company continues to benefit from strong demand in non-residential construction, driven by public infrastructure, heavy civil construction, data centers, energy infrastructure and manufacturing projects.
Through its AMI Metals subsidiary, Reliance secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. Demand also remained healthy across automotive toll processing, semiconductors, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those tied to small modular reactor programs.
Reliance continues to strengthen its growth profile through acquisitions that expand its geographic footprint, product offerings and value-added processing capabilities. Earlier acquisitions, such as Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, enhanced its service center network and higher-margin product mix.
Recent acquisitions, including Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy, further increase its presence in attractive U.S. growth markets.
The company ended the quarter with $249.7 million in cash and cash equivalents, up from $216.6 million sequentially, supported by record shipment volumes and strong profitability.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%. Shares of the company have plunged around 15.1% in the past six months.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%. Shares of IDR have plunged around 33.8% in the past six months.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $13.15 per share, indicating a 1,764.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%. Shares of IDR are down around 23.6% in the past six months.
View the Zacks #1 Rank List
Image: Bigstock
RS Shares Rise 23% in 6 Months: Here's What's Driving the Upside
Reliance, Inc.’s (RS - Free Report) shares have rallied 23.2% in the past six months. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 2.8% growth over the same time frame.
The rally was driven by strong first-quarter results, including record quarterly tons sold, with shipments outperforming industry trends and significant acquisitions.
Let’s take a look at the factors that are driving RS stock.
RS Gains From Record Shipments and Acquisitions
Reliance reported first-quarter 2026 tons sold of roughly 1.673 million, up 9.4% sequentially and 2.7% year over year, marking its 13th consecutive quarter of outperforming industry shipment trends.
The company continues to benefit from strong demand in non-residential construction, driven by public infrastructure, heavy civil construction, data centers, energy infrastructure and manufacturing projects.
Through its AMI Metals subsidiary, Reliance secured major Department of Homeland Security border wall contracts that are expected to support revenue growth. Demand also remained healthy across automotive toll processing, semiconductors, defense, shipbuilding, industrial machinery and nuclear-related markets, particularly those tied to small modular reactor programs.
Reliance continues to strengthen its growth profile through acquisitions that expand its geographic footprint, product offerings and value-added processing capabilities. Earlier acquisitions, such as Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, enhanced its service center network and higher-margin product mix.
Recent acquisitions, including Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy, further increase its presence in attractive U.S. growth markets.
The company ended the quarter with $249.7 million in cash and cash equivalents, up from $216.6 million sequentially, supported by record shipment volumes and strong profitability.
RS’s Zacks Rank & Key Picks
RS carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Albemarle Corporation (ALB - Free Report) . CSW, IDR and ALB carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%. Shares of the company have plunged around 15.1% in the past six months.
The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%. Shares of IDR have plunged around 33.8% in the past six months.
The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $13.15 per share, indicating a 1,764.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%. Shares of IDR are down around 23.6% in the past six months.