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Here's Why You Should Invest in MRC Global (MRC) Stock Now
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MRC Global Inc. (MRC - Free Report) currently boasts strong prospects, supported by its diversified businesses, lucrative contract wins and projects, focus on market expansion and a sound capital-deployment strategy.
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The Zacks Rank #1 (Strong Buy) company has a market capitalization of $672.9 million. In the past month, it has gained 23% compared with the industry’s growth of 13.3%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
End-Market Strength: MRC Global is set to benefit from its well-diversified business structure in various end markets, including upstream production, midstream pipelines, industrial and gas utilities. The company’s business in the gas utility sector has been witnessing strength, supported by increasing customer activity. For 2021 (results awaited), it expects to generate $1 billion of revenues from its business in the gas utility sector. Also, strength across upstream, midstream, downstream, energy transition and industrial sectors is likely to drive its performance in the quarters ahead.
Contract Wins & Projects: The company’s several large contracts with gas utilities and refiners in the United States are likely to be beneficial, going forward. Some of the new and renewed contracts signed by the company are with PG&E, Eversource, Ameren and Noble Midstream, among others. Also, its efforts to expand market share, improve profitability and working capital efficiency are likely to boost performance in the coming quarters.
Shareholder-Friendly Policies: MRC Global remains focused on rewarding shareholders handsomely through dividend payments. In 2020 and the first nine months of 2021, the company distributed dividends worth $24 million and $18 million, respectively.
Debt Reduction: The reduction of debts also remains its priority. For instance, in the first three quarters of 2021, MRC Global repaid $87 million of long-term obligations and $262 million worth of borrowings under the revolving credit facilities. However, the company raised $290 million through revolving credit facilities. It’s worth noting that in the first three quarters of 2021, it reduced its long-term debt by $56 million.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for its 2021 earnings has trended up from 17 cents to 20 cents on one upward estimate revision against none downward. The consensus estimate for its 2022 earnings has been stable at 62 cents over the same time frame.
Other Key Picks
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
Its earnings surprise in the last four quarters was 16.50%, on average.
In the past 60 days, Berry Global’s earnings estimates have increased 3.9% for fiscal 2022 (ending September 2022) and 5.2% for fiscal 2023 (ending September 2023). BERY’s shares have gained 6.5% in the past month.
Franklin Electric Co., Inc. (FELE - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 16.27%, on average.
Franklin Electric’s earnings estimates have been stable for 2021 (results awaited) and increased 0.6% for 2022 in the past 60 days. FELE’s shares have gained 0.9% in the past month.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.90%, on average.
AZZ’s earnings estimates have increased 2.3% for fiscal 2022 (ending February 2022) and 3.7% for fiscal 2023 (ending February 2023) in the past 60 days. Its shares have lost 4.2% in the past month.
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Here's Why You Should Invest in MRC Global (MRC) Stock Now
MRC Global Inc. (MRC - Free Report) currently boasts strong prospects, supported by its diversified businesses, lucrative contract wins and projects, focus on market expansion and a sound capital-deployment strategy.
The Zacks Rank #1 (Strong Buy) company has a market capitalization of $672.9 million. In the past month, it has gained 23% compared with the industry’s growth of 13.3%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
End-Market Strength: MRC Global is set to benefit from its well-diversified business structure in various end markets, including upstream production, midstream pipelines, industrial and gas utilities. The company’s business in the gas utility sector has been witnessing strength, supported by increasing customer activity. For 2021 (results awaited), it expects to generate $1 billion of revenues from its business in the gas utility sector. Also, strength across upstream, midstream, downstream, energy transition and industrial sectors is likely to drive its performance in the quarters ahead.
Contract Wins & Projects: The company’s several large contracts with gas utilities and refiners in the United States are likely to be beneficial, going forward. Some of the new and renewed contracts signed by the company are with PG&E, Eversource, Ameren and Noble Midstream, among others. Also, its efforts to expand market share, improve profitability and working capital efficiency are likely to boost performance in the coming quarters.
Shareholder-Friendly Policies: MRC Global remains focused on rewarding shareholders handsomely through dividend payments. In 2020 and the first nine months of 2021, the company distributed dividends worth $24 million and $18 million, respectively.
Debt Reduction: The reduction of debts also remains its priority. For instance, in the first three quarters of 2021, MRC Global repaid $87 million of long-term obligations and $262 million worth of borrowings under the revolving credit facilities. However, the company raised $290 million through revolving credit facilities. It’s worth noting that in the first three quarters of 2021, it reduced its long-term debt by $56 million.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for its 2021 earnings has trended up from 17 cents to 20 cents on one upward estimate revision against none downward. The consensus estimate for its 2022 earnings has been stable at 62 cents over the same time frame.
Other Key Picks
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
Berry Global Group, Inc. (BERY - Free Report) presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its earnings surprise in the last four quarters was 16.50%, on average.
In the past 60 days, Berry Global’s earnings estimates have increased 3.9% for fiscal 2022 (ending September 2022) and 5.2% for fiscal 2023 (ending September 2023). BERY’s shares have gained 6.5% in the past month.
Franklin Electric Co., Inc. (FELE - Free Report) presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 16.27%, on average.
Franklin Electric’s earnings estimates have been stable for 2021 (results awaited) and increased 0.6% for 2022 in the past 60 days. FELE’s shares have gained 0.9% in the past month.
AZZ Inc. (AZZ - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 16.90%, on average.
AZZ’s earnings estimates have increased 2.3% for fiscal 2022 (ending February 2022) and 3.7% for fiscal 2023 (ending February 2023) in the past 60 days. Its shares have lost 4.2% in the past month.