Reliance Steel & Aluminum Co (RS)
Reliance Steel & Aluminum Co. (RS) is a leading metal service center serving a diversified customer base across various industries, including construction, automotive, aerospace, and manufacturing. Headquartered in Los Angeles, California, Reliance operates a vast network of subsidiaries offering a wide range of metal products and value-added services, which enhance supply chain efficiency and customer satisfaction. The company's robust acquisition strategy and commitment to operational excellence position it as a key player in the metals distribution sector, making it a compelling investment opportunity for institutional investors seeking stability and growth in the industrial space.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 3.62% per annum.
- RS price at the close of November 21, 2025 was $275.14 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 31.54% per annum.
- RS price at the close of November 21, 2025 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of RS price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: June 27, 2023
End date: November 21, 2025
a = 5.5091
b = 0.0001
s = 0.0623
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0001) – 1
= 3.62%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0623) – 1
= 28.28%
June 27, 2023 calculations
Top border of price channel:
Exp(Y650)
= Exp(a + b × X650 + 2 × s)
= Exp(a + b × 946 + 2 × s)
= Exp(5.5091 + 0.0001 × 946 + 2 × 0.0623)
= Exp(5.7257)
= $306.64
Bottom border of price channel:
Exp(Y650)
= Exp(a + b × X650 – 2 × s)
= Exp(a + b × 946 – 2 × s)
= Exp(5.5091 + 0.0001 × 946 – 2 × 0.0623)
= Exp(5.4766)
= $239.04
November 21, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(5.5091 + 0.0001 × 1,824 + 2 × 0.0623)
= Exp(5.8111)
= $333.99
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(5.5091 + 0.0001 × 1,824 – 2 × 0.0623)
= Exp(5.5621)
= $260.36
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 3.62% per annum.
- RS price at the close of November 21, 2025 was $275.14 and was inside the primary price channel.
Secondary Trend
Start date: June 6, 2025
End date: November 21, 2025
a = 7.4829
b = -0.0010
s = 0.0343
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0010) – 1
= -31.54%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0343) – 1
= 14.72%
June 6, 2025 calculations
Top border of price channel:
Exp(Y1,138)
= Exp(a + b × X1,138 + 2 × s)
= Exp(a + b × 1,656 + 2 × s)
= Exp(7.4829 + -0.0010 × 1,656 + 2 × 0.0343)
= Exp(5.8322)
= $341.09
Bottom border of price channel:
Exp(Y1,138)
= Exp(a + b × X1,138 – 2 × s)
= Exp(a + b × 1,656 – 2 × s)
= Exp(7.4829 + -0.0010 × 1,656 – 2 × 0.0343)
= Exp(5.6949)
= $297.34
November 21, 2025 calculations
Top border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 + 2 × s)
= Exp(a + b × 1,824 + 2 × s)
= Exp(7.4829 + -0.0010 × 1,824 + 2 × 0.0343)
= Exp(5.6577)
= $286.50
Bottom border of price channel:
Exp(Y1,255)
= Exp(a + b × X1,255 – 2 × s)
= Exp(a + b × 1,824 – 2 × s)
= Exp(7.4829 + -0.0010 × 1,824 – 2 × 0.0343)
= Exp(5.5204)
= $249.74
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 31.54% per annum.
- RS price at the close of November 21, 2025 was inside the secondary price channel.