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Here's Why Investing in MRC Global (MRC) Stock Makes Sense

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·3 min read
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MRC Global Inc. MRC currently boasts solid prospects on strength across its businesses, lucrative contract wins and projects, focus on expanding market share and a sound capital-deployment strategy.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The Zacks Rank #2 (Buy) company has a market capitalization of $954.3 million. In the past three months, it has surged 69.1% compared with the industry’s growth of 19.1%.

Let’s delve into the factors that make investment in the company a smart choice at the moment.

Business Strength: MRC Global is poised to benefit from its presence across diversified end markets. Of late, the company’s business in the gas utility sector has been experiencing strength, supported by solid increase in customer activity. For 2022, revenues from its business in the gas utility sector are expected to grow in double-digit percentage, driven by higher gas distribution system integrity management and new home construction activities. Also, strength across upstream, midstream, downstream, energy transition and industrial sectors is likely to drive its performance in the quarters ahead.

Contracts & Projects: The company is poised to become more competent on several large contracts with gas utilities and refiners in the United States. Also, its efforts to expand market share, improve profitability and working capital efficiency are likely to boost performance in the quarters ahead.

Shareholder-Friendly Policies: MRC Global remains focused on rewarding shareholders handsomely through dividend payments. In 2021, the company distributed dividends worth $24 million to its shareholders.

Debt Reduction: The reduction of debts also remains its priority. In 2021, the company repaid $87 million of long-term obligations and $389 million worth of borrowings under the revolving credit facilities.

Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for its 2022 earnings has trended up from 62 cents to 83 cents, while the same for its 2023 has increased from 82 cents to $1.11.

Other Key Picks

Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.

Franklin Electric Co., Inc. FELE presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 17.4%, on average.

In the past 30 days, Franklin Electric’s earnings estimates have been raised 10.9% for 2022. FELE’s shares have lost 11% in the past three months.

Standex International Corporation SXI presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.

In the past 30 days, Standex’s earnings estimates have been stable for fiscal 2022 (ending June 2022). SXI’s shares have gained 0.6% in the past three months.

Ferguson plc FERG presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 16.82%.

Ferguson’s earnings estimates increased 0.5% for fiscal 2022 (ending July 2022) in the past 30 days. FERG’s shares have lost 9.5% in the past three months.


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Standex International Corporation (SXI) : Free Stock Analysis Report

MRC Global Inc. (MRC) : Free Stock Analysis Report

Franklin Electric Co., Inc. (FELE) : Free Stock Analysis Report

Wolseley PLC (FERG) : Free Stock Analysis Report

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