Reliance (RS) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Commodities are in another super-cycle, as shown by the performance of the Bloomberg Commodity Index diverging from stock and bond indices. Reliance Inc. is a compelling option in the steel industry, with steady revenue growth and a large customer base. RS has competitive advantages in terms of margins, capital-light growth, and surplus cash flow, making it an attractive buy with potential for value creation.
Here is how Reliance (RS) and SilverCrest Metals Inc. (SILV) have performed compared to their sector so far this year.