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MRC (MRC) Surges 11.8%: Is This an Indication of Further Gains?

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MRC Global (MRC - Free Report) shares ended the last trading session 11.8% higher at $14.89. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.2% gain over the past four weeks.

Shares of MRC Global rallied following the news of its planned acquisition by DNOW Inc. (DNOW - Free Report) . The two entities inked a merger deal per which, DNOW will buy all outstanding shares of MRC Global for approximately $1.5 billion, which includes the latter’s net debt. Subject to regulatory approvals and customary closing conditions, the acquisition is expected to close in the fourth quarter of 2025. This move is likely to create a leading energy and industrial solutions provider and generate substantial value for MRC Global’s customers and shareholders.

This energy products distributor is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -25.8%. Revenues are expected to be $771.6 million, down 7.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For MRC, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MRC going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MRC is part of the Zacks Steel - Pipe and Tube industry. Mueller Water Products (MWA - Free Report) , another stock in the same industry, closed the last trading session 0.6% lower at $24.11. MWA has returned -1.3% in the past month.

For Mueller Water Products, the consensus EPS estimate for the upcoming report has changed +6.3% over the past month to $0.34. This represents a change of +6.3% from what the company reported a year ago. Mueller Water Products currently has a Zacks Rank of #3 (Hold).


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