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Here's Why Hold Strategy is Apt for MRC Global (MRC) Stock

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MRC Global Inc. (MRC - Free Report) benefits from strength across several end markets, including upstream production, midstream pipelines, gas utilities, downstream, industrial and energy transition despite adversities from high cost of sales (due to raw material cost inflation). Also, its focus on customer service, supported by reliable operations and supply-chain management bodes well.

Safety-related modernization and emission reduction programs along with continued infrastructure improvement projects are supporting MRC’s gas utility sector. The company’s second-largest sector (downstream, industrial and energy transition) DIET sector is gaining from new energy transition-related projects. The company’s upstream production sector is being aided by increased customer activity in Canada. Increased customer activity in the North Sea is driving the sector’s International upstream sales. The Midstream pipeline sector is benefitting from increased delivery of valve and actuation assemblies and line pipe products.

Several contracts awarded by the largest gas utilities in the United States is supporting the company’s gas utility sector. Also, MRC’s businesses in the industrial, downstream and energy transition sectors are expected to gain from contracts with some of the largest refiners in the United States.

MRC Global is committed to rewarding its shareholders handsomely with dividend payments and share buybacks. In 2022, MRC paid out dividends worth $24 million. It also bought back shares worth $2 million in 2022.

In light of the above-mentioned positives, we believe, investors should retain MRC stock for now, as suggested by its current Zacks Rank #3 (Hold).

MRC Global Inc. Price

MRC Global Inc. Price

MRC Global Inc. price | MRC Global Inc. Quote

Stocks to Consider

Some top-ranked companies from the Industrial Products sector are discussed below:

Deere & Company (DE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 18.4% in the past six months.

Alamo Group Inc. (ALG - Free Report) presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.

In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 47% in the past six months.

A. O. Smith Corporation (AOS - Free Report) presently carries a Zacks Rank #2 (Buy). AOS’ earnings surprise in the last four quarters was 3.2%, on average.

In the past 60 days, estimates for A. O. Smith’s fiscal 2023 earnings have increased 4.7%. The stock has gained 38.7% in the past six months.

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