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MRC Global (MRC) Poised to Grow Despite Macro Headwinds
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On Mar 6, we issued an updated research report on MRC Global Inc. (MRC - Free Report) .
Existing Scenario
Over the last six months, MRC Global’s shares yielded a return of 38.64% – outperforming the 17.15% gain provided by the Zacks classified Steel Pipe & tubes industry.
The company intends to boost its competency on the back of acquisitions and restructuring initiatives. It is aimed at reinforcing its presence on the North American platform and focus on certain areas of business, including downstream, alloys & valves and MRO (maintenance, repair, and operations), with strategic buyouts. MRC Global has accrued revenues of more than $1.46 million, since 2008, by acquiring several businesses like HypTeck, MSD Engineering and Transmark.
The company also rolled out a plan in Aug 2016, under which it has been trimming and revamping its operations in Australia. This strategic move was taken in a bid to combat the downside lingering in the mining and energy industries in the region. The entire plan will likely be accomplished by the end of first-quarter 2017, giving rise to productive resources which can be deployed in areas offering immense growth in business.
Also, MRC Global inks meaningful organic deals for bolstering top-line performance over the long term. For instance, the Enterprise Distributor Program (EDP) agreement signed in Oct 2016, with Cameron International, would likely reinforce the company’s ongoing multi-year strategy. Through this program, MRC Global aims to generate more than 40% of its revenues from the automation, valves, instrumentation and measurement products.
Further, MRC Global is committed toward its shareholders, and tries to provide greater value to them through lucrative dividend and share buyback offers.
Over the last 30 days, the Zacks Consensus Estimate for the stock moved north for both 2017 and 2018, reflecting positive market sentiments.
However, MRC Global reported weaker-than-expected fourth-quarter 2016 results on Feb 16. Quarterly results were dismal primarily due to the challenging conditions prevailing in the oil and gas market. Weak prices of energy resources like oil have been affecting the revenues generated by manufacturing and industrial companies including MRC Global. Choppy oil prices have been directly hurting the oil companies’ sales. This, in turn, significantly brings down the extent of Greenfield investments in the sector.
Additionally, input price inflation, stiff industry rivalry or a stronger U.S. dollar might hurt the top- and bottom-line performances of this Zacks Rank #3 (Hold) company in the near term.
Stocks to Consider
Better-ranked stocks within the industry are listed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) carries a Zacks Rank #2 (Buy) and has a positive average earnings surprise of 6.18% for the trailing four quarters.
Avery Dennison Corporation (AVY - Free Report) also holds a Zacks Rank #2 and has an average earnings surprise of 6.17% for the past quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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MRC Global (MRC) Poised to Grow Despite Macro Headwinds
On Mar 6, we issued an updated research report on MRC Global Inc. (MRC - Free Report) .
Existing Scenario
Over the last six months, MRC Global’s shares yielded a return of 38.64% – outperforming the 17.15% gain provided by the Zacks classified Steel Pipe & tubes industry.
The company intends to boost its competency on the back of acquisitions and restructuring initiatives. It is aimed at reinforcing its presence on the North American platform and focus on certain areas of business, including downstream, alloys & valves and MRO (maintenance, repair, and operations), with strategic buyouts. MRC Global has accrued revenues of more than $1.46 million, since 2008, by acquiring several businesses like HypTeck, MSD Engineering and Transmark.
The company also rolled out a plan in Aug 2016, under which it has been trimming and revamping its operations in Australia. This strategic move was taken in a bid to combat the downside lingering in the mining and energy industries in the region. The entire plan will likely be accomplished by the end of first-quarter 2017, giving rise to productive resources which can be deployed in areas offering immense growth in business.
Also, MRC Global inks meaningful organic deals for bolstering top-line performance over the long term. For instance, the Enterprise Distributor Program (EDP) agreement signed in Oct 2016, with Cameron International, would likely reinforce the company’s ongoing multi-year strategy. Through this program, MRC Global aims to generate more than 40% of its revenues from the automation, valves, instrumentation and measurement products.
Further, MRC Global is committed toward its shareholders, and tries to provide greater value to them through lucrative dividend and share buyback offers.
Over the last 30 days, the Zacks Consensus Estimate for the stock moved north for both 2017 and 2018, reflecting positive market sentiments.
However, MRC Global reported weaker-than-expected fourth-quarter 2016 results on Feb 16. Quarterly results were dismal primarily due to the challenging conditions prevailing in the oil and gas market. Weak prices of energy resources like oil have been affecting the revenues generated by manufacturing and industrial companies including MRC Global. Choppy oil prices have been directly hurting the oil companies’ sales. This, in turn, significantly brings down the extent of Greenfield investments in the sector.
Additionally, input price inflation, stiff industry rivalry or a stronger U.S. dollar might hurt the top- and bottom-line performances of this Zacks Rank #3 (Hold) company in the near term.
Stocks to Consider
Better-ranked stocks within the industry are listed below:
ACCO Brands Corporation (ACCO - Free Report) has a positive average earnings surprise of 24.74% for the last four quarters and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies, Inc. (AIT - Free Report) carries a Zacks Rank #2 (Buy) and has a positive average earnings surprise of 6.18% for the trailing four quarters.
Avery Dennison Corporation (AVY - Free Report) also holds a Zacks Rank #2 and has an average earnings surprise of 6.17% for the past quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>