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MRC Global (MRC) Exhibits Solid Prospects, Risks Persist
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MRC Global Inc. (MRC - Free Report) has been gaining from its extensive presence across several end markets, including upstream production, midstream pipelines, chemicals & refining, and gas utilities. This has been enabling it to tap into opportunities and neutralize operating risks associated with a single market. Of late, its business in the gas utility sector has been witnessing strength, driven by increasing customer activity. Notably, its businesses in the gas utility sector experienced year-over-year growth of 4% in first-quarter 2021.
Also, the company has been benefiting from lucrative contract wins and projects over time. During 2020, the company secured new contracts from CenterPoint, Noble Midstream and Ameren. Also, it renewed a number of five-year contracts with its gas utility customers, including the three largest — Dominion, PG&E and TECO Energy. Further, some multi-year contracts signed previously have been proving beneficial for the company.
Moreover, it remains focused on rewarding shareholders handsomely through dividend payments. In full-year 2020 and first-quarter 2021, the company used $24 million and $6 million, respectively, for paying dividends.
However, weakness across all sectors (with the exception of the gas utilities sector) amid the coronavirus outbreak has been weighing on its top-line performance. In the quarters ahead, low customer spending might continue affecting the company’s performance. With operations spread globally, the company’s performance is also exposed to risks arising from geopolitical issues, trade relations, adverse movements in foreign currencies and governmental policies.
In the past three months, this Zacks Rank #3 (Hold) stock has returned 24.4% compared with the industry’s growth of 5.7%.
Barnes pulled off a trailing four-quarter earnings surprise of 19.45%, on average.
Dover pulled off a trailing four-quarter earnings surprise of 21.35%, on average.
Graco delivered a trailing four-quarter earnings surprise of 28.28%, on average.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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MRC Global (MRC) Exhibits Solid Prospects, Risks Persist
MRC Global Inc. (MRC - Free Report) has been gaining from its extensive presence across several end markets, including upstream production, midstream pipelines, chemicals & refining, and gas utilities. This has been enabling it to tap into opportunities and neutralize operating risks associated with a single market. Of late, its business in the gas utility sector has been witnessing strength, driven by increasing customer activity. Notably, its businesses in the gas utility sector experienced year-over-year growth of 4% in first-quarter 2021.
Also, the company has been benefiting from lucrative contract wins and projects over time. During 2020, the company secured new contracts from CenterPoint, Noble Midstream and Ameren. Also, it renewed a number of five-year contracts with its gas utility customers, including the three largest — Dominion, PG&E and TECO Energy. Further, some multi-year contracts signed previously have been proving beneficial for the company.
Moreover, it remains focused on rewarding shareholders handsomely through dividend payments. In full-year 2020 and first-quarter 2021, the company used $24 million and $6 million, respectively, for paying dividends.
However, weakness across all sectors (with the exception of the gas utilities sector) amid the coronavirus outbreak has been weighing on its top-line performance. In the quarters ahead, low customer spending might continue affecting the company’s performance. With operations spread globally, the company’s performance is also exposed to risks arising from geopolitical issues, trade relations, adverse movements in foreign currencies and governmental policies.
In the past three months, this Zacks Rank #3 (Hold) stock has returned 24.4% compared with the industry’s growth of 5.7%.
Stocks to Consider
Some better-ranked stocks from the Zacks Industrial Products sector are Barnes Group, Inc. (B - Free Report) , Dover Corporation (DOV - Free Report) and Graco Inc. (GGG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Barnes pulled off a trailing four-quarter earnings surprise of 19.45%, on average.
Dover pulled off a trailing four-quarter earnings surprise of 21.35%, on average.
Graco delivered a trailing four-quarter earnings surprise of 28.28%, on average.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>