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Here's Why it is Worth Investing in MRC Global (MRC) Stock
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MRC Global Inc. (MRC - Free Report) is well poised for growth, courtesy of strength across its businesses, shareholder policies, working capital efficiency and lucrative contract wins and projects.
Image Source: Zacks Investment Research
This Zacks Rank #2 (Buy) company has a market capitalization of $1.1 billion. In the past six months, the stock has appreciated 42.2% compared with the industry’s growth of 20.8%.
Let’s delve into the factors that make the company a smart choice at the moment.
Business Strength: MRC Global has been benefiting from its diversified business operations, which enable it to mitigate risks across one end market with strength across others. For 2022, the company anticipates double-digit percentage top-line growth for its gas utility sector, backed by new home construction activities. In the quarters ahead, MRC is expected to benefit from its focus on expanding market share and working capital efficiency.
Contracts & Projects: MRC intends to become more competent on contract wins and projects. Several contracts from nine of the 10 largest gas utilities in the United States will likely benefit its gas utility sector. Also, the company’s downstream, industrial and energy transition sectors are expected to benefit from contracts with some of the largest refiners in the United States. MRC Global generated 36% of its revenues from the automation, valve, measurement & instrumentation product line in 2021.
Rewards to Shareholders: It remains committed toward rewarding shareholders through dividend payouts. For instance, MRC Global paid out dividends worth $24 million in 2021. Improved cash positions will likely benefit the company over time.
Debt Reduction: The reduction of debt also remains MRC’s priority. It reduced its net debt and long-term debt by 15 million and 86 million, respectively in 2021.
In the past 60 days, the Zacks Consensus Estimate for its 2022 earnings has increased from 82 cents to 83 cents.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
In the past 60 days, earnings estimates for NDSN earnings have increased 1.1% for fiscal 2022 (ending October 2022). The stock has declined 9.3% in the past six months.
Donaldson Company, Inc. (DCI - Free Report) presently carries a Zacks Rank of 2. DCI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
Earnings estimates for DCI have increased 0.7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have decreased 13.6% in the past six months.
Ferguson plc (FERG - Free Report) is presently Zacks #2 Ranked. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 8.3% in the past six months.
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Here's Why it is Worth Investing in MRC Global (MRC) Stock
MRC Global Inc. (MRC - Free Report) is well poised for growth, courtesy of strength across its businesses, shareholder policies, working capital efficiency and lucrative contract wins and projects.
Image Source: Zacks Investment Research
This Zacks Rank #2 (Buy) company has a market capitalization of $1.1 billion. In the past six months, the stock has appreciated 42.2% compared with the industry’s growth of 20.8%.
Let’s delve into the factors that make the company a smart choice at the moment.
Business Strength: MRC Global has been benefiting from its diversified business operations, which enable it to mitigate risks across one end market with strength across others. For 2022, the company anticipates double-digit percentage top-line growth for its gas utility sector, backed by new home construction activities. In the quarters ahead, MRC is expected to benefit from its focus on expanding market share and working capital efficiency.
Contracts & Projects: MRC intends to become more competent on contract wins and projects. Several contracts from nine of the 10 largest gas utilities in the United States will likely benefit its gas utility sector. Also, the company’s downstream, industrial and energy transition sectors are expected to benefit from contracts with some of the largest refiners in the United States. MRC Global generated 36% of its revenues from the automation, valve, measurement & instrumentation product line in 2021.
Rewards to Shareholders: It remains committed toward rewarding shareholders through dividend payouts. For instance, MRC Global paid out dividends worth $24 million in 2021. Improved cash positions will likely benefit the company over time.
Debt Reduction: The reduction of debt also remains MRC’s priority. It reduced its net debt and long-term debt by 15 million and 86 million, respectively in 2021.
In the past 60 days, the Zacks Consensus Estimate for its 2022 earnings has increased from 82 cents to 83 cents.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
Nordson Corporation (NDSN - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 9.9%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, earnings estimates for NDSN earnings have increased 1.1% for fiscal 2022 (ending October 2022). The stock has declined 9.3% in the past six months.
Donaldson Company, Inc. (DCI - Free Report) presently carries a Zacks Rank of 2. DCI delivered a trailing four-quarter earnings surprise of 4.2%, on average.
Earnings estimates for DCI have increased 0.7% for fiscal 2022 (ending July 2022) in the past 60 days. Its shares have decreased 13.6% in the past six months.
Ferguson plc (FERG - Free Report) is presently Zacks #2 Ranked. Its earnings surprise in the last four quarters was 14.2%, on average.
In the past 60 days, earnings estimates for FERG have increased 7% for fiscal 2022 (ending July 2022). The stock has declined 8.3% in the past six months.