Reliance, Inc.’s RS shares have rallied 33.5% year to date. The company has also outperformed the Zacks Mining - Miscellaneous industry’s 14.7% 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.

Let’s take a look at the factors that are driving RS stock.

Growth Strategy & Demand Strengthen Market Position for RS

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 expected to support future 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.

Reliance's growth momentum appears well supported by a combination of strong end-market demand, disciplined capital allocation and strategic acquisitions. Record shipment volumes, a diversified exposure to resilient sectors such as infrastructure, aerospace, defense and data centers, along with a healthy balance sheet, position the company to sustain growth. As infrastructure spending and manufacturing investments remain, the stock is likely to maintain its positive momentum over the coming quarters.

RS’s Zacks Rank & Other Key Picks

RS currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the Basic Materials space include Nucor Corporation NUE, L.B. Foster Company FSTR and Albemarle Corporation ALB. NUE, FSTR and ALB carry a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NUE’s current-year earnings stands at $17 per share, implying a 120.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%. Shares of the company have surged around 47% year to date.

The Zacks Consensus Estimate for FSTR’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with the average surprise being 3.62%. Shares of FSTR have surged around 66.1% year to date.

The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% 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 ALB have plunged around 5.5% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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