Back to top

Image: Bigstock

MRC Global (MRC) Secures 5-Year PVF Contract from PBF Energy

Read MoreHide Full Article

Premium Oil & Gas Equipment & Services providing company, MRC Global Inc. (MRC - Free Report) strengthened its long-standing relationship with PBF Energy Inc. (PBF - Free Report) on the back of a new five-year pipe, valve and fitting (PVF) contract. The deal is likely to boost the company’s organic growth trajectory and support its multi-year growth strategy as well. Financial terms of the deal remain undisclosed.   

We deem that at present investors should not lose hope and shun MRC Global’s shares. Over the last one year, shares of this Zacks Rank #3 (Hold) stock yielded a return of 39.91%, outperforming 38.90% growth recorded by the Zacks categorized Steel-Pipe &Tube industry. Notably, the stock’s projected earnings growth rate this year is 111.80%, way higher than the Steel-Pipe & Tube industry’s projected growth rate of 4.60%.

New PVF Deal

PBF Energy is a prominent independent petroleum supplier and refiner in the market. The company offers unbranded heating oil, petrochemical feedstocks, transportation fuels, lubricants and other petroleum products in the U.S.

Per the new five-year contract, MRC Global would be providing PVF services and products to PBF Energy’s refineries located in Torrance, Delaware City, Toledo, Paulsboro and Chalmette. The company would even cater to all types of maintenance, repair and operations (MRO) requisites of PBF Energy.  

Our Take

MRC Global is poised to grow on the back of diligent acquisitions, strategic restructuring moves and its multi-year growth strategy. The company implemented this strategy (in 2014) for re-balancing product lines, streamline selling, general & administrative costs, bolster worldwide industrial valve sales and expand business internationally.

However, weak pricing conditions prevailing in the contemporary energy market are currently hurting this Zacks Rank #3 stock’s upstream, midstream and downstream businesses. Oil prices have been slumping, of late, on account of record crude inventories and stock in the U.S.

Stocks to Consider

Better-ranked stocks within the industry are listed below:

ACCO Brands Corporation (ACCO - Free Report) has an 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.

Altra Industrial Motion Corp. holds a Zacks Rank #2 (Buy) and has an average earnings surprise of 12.49% for the trailing four quarters.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Acco Brands Corporation (ACCO) - free report >>

MRC Global Inc. (MRC) - free report >>

PBF Energy Inc. (PBF) - free report >>

Published in