15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

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10. Reliance Inc. (NYSE:RS)

Market Capitalization as of April 28: $15.08 billion

Number of Hedge Fund Holders: 31

Reliance Inc. (NYSE:RS) distributes a line of metal products like alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and other specialty steel products. It also provides metals processing services to consumer products, general manufacturing, non-residential construction, transportation, aerospace, energy, electronics & semiconductor fabrication, industrial machinery, and heavy industries.

The Nonresidential Construction market is a crucial segment for the company and represents ~one-third of its sales in Q1 2025. Reliance sells carbon steel tubing, plate, and structural products primarily into this market. In Q1, all three of these product categories experienced year-over-year and sequential quarter shipment growth, which exceeded the service center industry’s year-over-year decline of 0.5%.

This performance at Reliance Inc. (NYSE:RS) came from heightened activity in data center construction and related energy infrastructure, as well as publicly funded infrastructure projects. For Q2 2025, Reliance anticipates demand in the nonresidential construction market, which will contribute to an estimated 1% to 3% increase in the company’s average selling price per ton sold compared to Q1, which saw an average selling price per ton of $2,143.

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