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Reliance Jumps 33% YTD: Here's What's Driving the Stock
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Key Takeaways
Reliance shares have rallied 33% YTD, fueled by strong construction and infrastructure demand.
Data centers, energy infrastructure and the border wall project are driving healthy demand and earnings.
RS has boosted shareholder returns with dividends and $3.4 billion in stock repurchases since 2021.
Reliance, Inc. (RS - Free Report) shares have rallied 33% year to date. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 25.1% rise over the same time frame.
The price performance is supported by strong construction and infrastructure demand, particularly from data centers, energy infrastructure and the border wall project. Strategic acquisitions, healthy cash generation and higher shareholder returns through dividends and buybacks are also strengthening investor sentiment.
Image Source: Zacks Investment Research
Let’s take a look at the factors that are driving RS stock.
Reliance Gains From Construction and Infrastructure Demand
Reliance continues to benefit from the non-residential construction market, its largest end market by volume, where demand improved year over year in the second quarter. Strong activity across data centers, energy infrastructure and public infrastructure projects is supporting healthy demand, and the company expects this momentum to continue despite potential supply availability constraints.
The Department of Homeland Security border wall project has emerged as an even stronger growth driver than initially expected, contributing meaningfully to second-quarter earnings and shipments, with benefits expected to continue through the second half of 2026. Demand for the company's automotive toll processing services also improved and is expected to remain steady, while semiconductor demand strengthened significantly on rising data-center activity. In addition, Reliance reported improving aerospace demand, continued strength across industrial machinery, shipbuilding and defense-related manufacturing, and expects demand across its diversified end markets to remain healthy.
Reliance continues to execute its long-term growth strategy through disciplined acquisitions that expand its geographic footprint, diversify its product portfolio and strengthen its value-added processing capabilities. Over the years, acquisitions such as Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company, Merfish United, Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy have enhanced the company's presence across key end markets, broadened its exposure to higher-margin specialty products and expanded its processing and logistics capabilities.
Acquisitions have expanded Reliance's regional reach and strengthened its presence across key end markets. The company remains focused on high-quality, complementary businesses, supported by a strong balance sheet that enables strategic investments while returning capital through dividends and share repurchases.
Reliance Returns Capital Through Dividends and Buybacks
Reliance is dedicated to delivering value to its investors, backed by a strong liquidity position. It returned $63.8 million to stockholders through dividend payments in the second quarter of 2026. It repurchased $3.4 billion of its common stock since 2021 at an average price of approximately $234 per share, reducing shares outstanding by 22%.
The company’s board has raised its quarterly dividend by 4.2% to $1.25 per share. It ended the second quarter of 2026 with cash and cash equivalents of $235.4 million. It generated $162.2 million in cash flow from operations during the last reported quarter, aided by prudent working capital management and profitability.
RS’ Zacks Rank & Other Key Picks
RS currently carries a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for WS’ current-year earnings stands at $3.4 per share, implying a 52.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the negative average surprise being 13.8%. Shares of the company have gone down by around 18.7% year to date.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $13.28 per share, implying a 23.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.4%. Shares of CRS have lost around 21.4% year to date.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pegged at $3.2 per share, indicating a 13.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%. Shares of AVNT have surged around 10.3% year to date.
View the Zacks #1 Rank List
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Reliance Jumps 33% YTD: Here's What's Driving the Stock
Key Takeaways
Reliance, Inc. (RS - Free Report) shares have rallied 33% year to date. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 25.1% rise over the same time frame.
The price performance is supported by strong construction and infrastructure demand, particularly from data centers, energy infrastructure and the border wall project. Strategic acquisitions, healthy cash generation and higher shareholder returns through dividends and buybacks are also strengthening investor sentiment.
Let’s take a look at the factors that are driving RS stock.
Reliance Gains From Construction and Infrastructure Demand
Reliance continues to benefit from the non-residential construction market, its largest end market by volume, where demand improved year over year in the second quarter. Strong activity across data centers, energy infrastructure and public infrastructure projects is supporting healthy demand, and the company expects this momentum to continue despite potential supply availability constraints.
The Department of Homeland Security border wall project has emerged as an even stronger growth driver than initially expected, contributing meaningfully to second-quarter earnings and shipments, with benefits expected to continue through the second half of 2026. Demand for the company's automotive toll processing services also improved and is expected to remain steady, while semiconductor demand strengthened significantly on rising data-center activity. In addition, Reliance reported improving aerospace demand, continued strength across industrial machinery, shipbuilding and defense-related manufacturing, and expects demand across its diversified end markets to remain healthy.
Strategic Acquisitions Expand Reliance's Market Reach
Reliance continues to execute its long-term growth strategy through disciplined acquisitions that expand its geographic footprint, diversify its product portfolio and strengthen its value-added processing capabilities. Over the years, acquisitions such as Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company, Merfish United, Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy have enhanced the company's presence across key end markets, broadened its exposure to higher-margin specialty products and expanded its processing and logistics capabilities.
Acquisitions have expanded Reliance's regional reach and strengthened its presence across key end markets. The company remains focused on high-quality, complementary businesses, supported by a strong balance sheet that enables strategic investments while returning capital through dividends and share repurchases.
Reliance Returns Capital Through Dividends and Buybacks
Reliance is dedicated to delivering value to its investors, backed by a strong liquidity position. It returned $63.8 million to stockholders through dividend payments in the second quarter of 2026. It repurchased $3.4 billion of its common stock since 2021 at an average price of approximately $234 per share, reducing shares outstanding by 22%.
The company’s board has raised its quarterly dividend by 4.2% to $1.25 per share. It ended the second quarter of 2026 with cash and cash equivalents of $235.4 million. It generated $162.2 million in cash flow from operations during the last reported quarter, aided by prudent working capital management and profitability.
RS’ Zacks Rank & Other Key Picks
RS currently carries a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the Basic Materials space include Worthington Steel, Inc. (WS - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avient Corporation (AVNT - Free Report) . WS sports a Zacks Rank #1, while CRS and AVNT carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WS’ current-year earnings stands at $3.4 per share, implying a 52.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the negative average surprise being 13.8%. Shares of the company have gone down by around 18.7% year to date.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $13.28 per share, implying a 23.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.4%. Shares of CRS have lost around 21.4% year to date.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pegged at $3.2 per share, indicating a 13.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%. Shares of AVNT have surged around 10.3% year to date.