How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Reliance (RS) ten years ago? It may not have been easy to hold on to RS for all that time, but if you did, how much would your investment be worth today?
Reliance's Business In-Depth
With that in mind, let's take a look at Reliance's main business drivers.
Los Angeles-based Reliance, Inc. is a leading metals service center company engaged in value-added materials management and metals processing services. It also distributes over 100,000 metal products to more than 125,000 customers across a vast spectrum of industries. Reliance is the biggest North American metals service center company based on revenues, with more than 300 locations.
Reliance recorded net sales of $13,835 million in 2024. Its major products are carbon steel (55% of 2024 sales), aluminum (17%), stainless steel (15%) and alloy (5%).
Reliance has 200 processing and distribution centers spread across 39 states in the United States and in foreign countries such as Belgium, Canada, China, Malaysia, Mexico, Singapore, South Korea and the United Kingdom. Although the company has a diverse geographic presence, the southeastern United States generates the majority of its sales.
Reliance provides metals processing services, such as cutting-to-length, blanking, slitting, burning, plasma burning, precision plate sawing, and shearing, among others, all to customer specifications. These services save time and labor and reduce the overall manufacturing costs for the customer. The company improves its operating results through strategic acquisitions and the expansion of its existing operations.
The company, in March 2018, completed its purchase of all the issued and outstanding capital stock of DuBose National Energy Services, Inc. (DuBose Energy) and its affiliate, DuBose National Energy Fasteners & Machined Parts, Inc. (DuBose Fasteners) for an undisclosed price. DuBose Energy and DuBose Fasteners specialize in the fabrication, supply and distribution of metal and metal products to the nuclear industry, including utilities, component manufacturers and contractors.
Moreover, Reliance, in November 2018, completed the purchase of all of the membership interests of All Metals Holding, LLC, including its operating subsidiaries, All Metals Processing & Logistics, Inc. (“AMPL”) and All Metals Transportation and Logistics, Inc. (“AMTL”).
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Reliance ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2015 would be worth $5,349.99, or a 435% gain, as of July 3, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 199.86% and gold's return of 176.71% over the same time frame.
Analysts are anticipating more upside for RS.
Earnings estimates for Reliance for the second quarter of 2025 have been stable over the past month. The company is expected to benefit from improving demand across the majority of its end markets in 2025. Reliance is benefiting from a robust non-residential construction market, with strong demand conditions. The company's core business strategy is to enhance operating results through strategic acquisitions. However, it is currently facing pricing challenges, with a decline in the average selling price per ton due to lower-priced carbon steel products. The semiconductor sector remains a weak spot, while the chances of the company being affected by tariff impacts cannot be ruled out.
The stock is up 5.47% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2025. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Reliance, Inc. (RS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
