Reliance (RS) has been on a downward spiral lately with significant selling pressure. After declining 10% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is overs ...

Reliance, Inc.’s (RS) stock looks promising at the moment. It is gaining from demand strength in its major end-use markets, a diversified product base and strategic acquisitions.We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.Let’s delve deeper into the factors that make this Zacks Rank #1 (Strong Buy) stock an attractive choice for investors right now.An OutperformerRS has out ...

SCOTTSDALE, Ariz., May 07, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE:RS) announced today that its management team will participate in the following upcoming investor conferences: The BofA Securities 2024 Global Metals, Mining & Steel Conference on Tuesday, May 14, 2024 in Miami, Florida. Karla Lewis, President and Chief Executive Officer, and Arthur Ajemyan, Senior Vice President and Chief Financial Officer, are scheduled to present on Tuesday, May 14th at 5:30 p.m. ET and will participate in meetings w ...

SCOTTSDALE, Ariz., May 07, 2024 (GLOBE NEWSWIRE) -- Reliance, Inc. (NYSE: RS) announced today that its management team will participate in the following upcoming investor conferences: The BofA Securities 2024 Global Metals, Mining & Steel Conference on Tuesday, May 14, 2024 in Miami, Florida. Karla Lewis, President and Chief Executive Officer, and Arthur Ajemyan, Senior Vice President and Chief Financial Officer, are scheduled to present on Tuesday, May 14th at 5:30 p.m. ET and will participate in meetings ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-13122 Reliance, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdic ...

Reliance (RS) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often find ...

Core Viewpoint - Reliance (RS) has experienced a significant decline of 13% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Stock Performance and Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - RS has an RSI reading of 17.2, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards previous supply and demand equilibrium [4]. Group 2: Earnings Estimates and Analyst Consensus - There is strong consensus among sell-side analysts that earnings estimates for RS have increased by 1.4% over the last 30 days, which often correlates with price appreciation in the near term [4]. - RS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [5].

Core Viewpoint - Reliance, Inc. reported a decline in profits and net sales for the first quarter of 2024, missing consensus estimates, but anticipates a seasonal recovery in demand for the upcoming quarter [1][5]. Financial Performance - The company posted profits of $302.9 million or $5.23 per share, down from $383.1 million or $6.43 per share year-over-year [1]. - Net sales were $3,644.8 million, reflecting an 8.1% decrease year-over-year and falling short of the Zacks Consensus Estimate of $3,733.1 million [1]. - Barring one-time items, earnings were $5.30 per share, which also lagged behind the Zacks Consensus Estimate of $5.51 [1]. Volumes and Pricing - Shipments decreased by 1.7% year-over-year to 1,494 thousand tons sold, surpassing the estimate of 1,480.4 [2]. - The average selling price per ton dropped by 6.9% year-over-year to $2,442, lower than the estimate of $2,509 [2]. - Demand for non-residential construction is expected to remain strong, particularly in public infrastructure, manufacturing, and energy sectors [2]. Industry Trends - The broader manufacturing sector experienced a slight decline in demand, primarily due to downturns in agricultural equipment and consumer products, although industrial machinery activities rose [3]. - The semiconductor market showed seasonal improvement but remained below early 2023 levels, with a positive long-term outlook supported by the CHIPS Act [3]. Financial Position - At the end of Q1 2024, Reliance had $934.9 million in cash and cash equivalents and $1.15 billion in total outstanding debt, with no borrowings under its $1.5 billion revolving credit facility [4]. - The company generated cash flow from operations of $126.3 million in the first quarter [4]. Outlook - Reliance anticipates a stronger-than-usual seasonal recovery in demand for Q2 2024, projecting a 2.5-4.5% increase in tons sold, with about 2% growth from new acquisitions [5]. - The average selling price per ton is expected to decline by 1-3%, leading to short-term gross profit margin pressure [5]. - Adjusted earnings per share for Q2 2024 are forecasted to range between $4.70 and $4.90 [5]. Price Performance - Reliance's shares have increased by 21.6% over the past year, outperforming the industry average rise of 10.7% [6].

Financial Data and Key Metrics Changes - The company reported non-GAAP earnings per diluted share of $5.30 for Q1 2024, which was at the low end of the guided range due to softer pricing than anticipated [15][5] - The gross profit margin for Q1 2024 was 31%, supported by a higher-than-expected LIFO benefit and better alignment of costs [16][6] - Operating cash flow for Q1 was $126.3 million, funding $108.7 million in capital expenditures and $65.3 million in dividends [18][6] Business Line Data and Key Metrics Changes - Tons sold increased by 10.3% compared to Q4 2023, but were down 1.7% year-over-year, outperforming the service center industry decrease of 4.2% [9][10] - Carbon steel tubing, plate, and structurals represented about one-third of sales, showing solid volume growth [11] - Aerospace products accounted for about 9% of total sales, with stable demand year-over-year [12] Market Data and Key Metrics Changes - The average selling price per ton sold was $2,442, a decline of 1% compared to Q4 2023, with carbon steel prices increasing by 1% but trending down in Q2 [10][11] - Demand in the semiconductor industry has stabilized but remains down year-over-year, with a positive long-term outlook due to the CHIPS Act [13] Company Strategy and Development Direction - The company completed three acquisitions in 2024, adding nearly $500 million in annualized sales based on 2023 results, and continues to evaluate future acquisition opportunities [6][7] - The capital expenditure budget for 2024 is $440 million, with two-thirds allocated for growth projects [6][7] Management's Comments on Operating Environment and Future Outlook - Management expects a better-than-normal seasonal recovery in demand for Q2 2024, with shipping volumes anticipated to increase by 2.5% to 4.5% sequentially [19] - The company anticipates non-GAAP earnings per diluted share in the range of $4.70 to $4.90 for Q2 2024, reflecting short-term pressure on gross profit margins [20] Other Important Information - The company has a strong M&A pipeline and has completed 75 acquisitions since its IPO in 1994 [7] - The LIFO reserve on the balance sheet was $529 million, which will benefit future operating results [17] Q&A Session Summary Question: Expectations for FIFO gross margins in Q3 - Management expects FIFO gross margins to improve in Q3 as prices level out [22][23] Question: Operating expenses higher than anticipated - Management noted that increased operating expenses were due to higher volumes and ongoing infrastructure expansions [24][26] Question: Same-store volumes in Q2 and Q3 of last year - Management indicated that same-store volumes were relatively stable, with minor acquisitions not significantly affecting the numbers [31][32] Question: Impact of acquisitions on growth rates - Management confirmed that acquisitions would contribute positively to growth rates, with expectations of around 4% growth year-on-year [34][35] Question: Repurchase activity and acquisition pipeline - Management stated that no share repurchases occurred in Q1 due to ongoing acquisition activities, but they remain open to future repurchases [39][40] Question: Aerospace and defense market outlook - Management sees strong demand in the defense sector, while commercial aerospace faces near-term pressure due to supply chain adjustments [54][56]

Reliance (RS) came out with quarterly earnings of $5.30 per share, missing the Zacks Consensus Estimate of $5.51 per share. This compares to earnings of $6.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.81%. A quarter ago, it was expected that this metals service-center company would post earnings of $3.86 per share when it actually produced earnings of $4.73, delivering a surprise of 22.54%.Over the last four quarters, ...