10 Best Steel Stocks to Buy According to Billionaires

5. Reliance, Inc. (NYSE:RS)

Number of Billionaire Investors: 10

Reliance, Inc. (NYSE:RS) operates as a leading metals service center, providing various metal products, including carbon steel, stainless steel, aluminum, and specialty alloys. The company serves critical sectors such as non-residential construction, manufacturing, transportation, aerospace, and energy, with about half of its orders involving value-added processing.

Although Reliance, Inc. (NYSE:RS) faced many challenges, it outpaced industry trends in Q4, which ended December 31, 2024. Same-store tons sold grew 2.8% year-over-year, while total tons sold jumped 6.7%, far exceeding the industry’s 3.6% drop. However, lower steel prices squeezed margins, resulting in Q4 earnings of $2.22 per share, which included a negative LIFO adjustment. The company expects a 6-8% increase in tons sold for Q1 2025 due to steady demand in the construction and manufacturing markets.

Moreover, Reliance, Inc. (NYSE:RS) is investing $325 million in 2025, mainly to upgrade processing capabilities and expand existing facilities. The company expects stable demand across key markets, with infrastructure spending and manufacturing reshoring offering long-term growth opportunities. Also, potential tariffs in March 2025 might reduce imports, supporting domestic steel prices.

However, despite economic uncertainty and fluctuating steel prices, Reliance, Inc. (NYSE:RS) is well-positioned to handle market shifts with its solid balance sheet and strategic focus on value-added processing. With ongoing growth in data center construction, electrical grid updates, and defense projects, RS is one of the best steel stocks.