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MRC Global (MRC) Up 38.3% in 6 Months: What's Driving the Rally?
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MRC Global Inc. (MRC - Free Report) performance has been impressive over the past six months, evident from a 38.3% increase in its share price. Strength across end markets, solid product offerings, operational productivity initiatives and strong capital-allocation strategies supported positive market sentiments for the company.
Image Source: Zacks Investment Research
The Houston, TX-based firm, with $975.1 million of market capitalization, belongs to the Zacks Steel - Pipe and Tube industry. It currently carries a Zacks Rank #2 (Buy).
In the past six months, MRC Global has outperformed its industry’s growth of 21.4% and the S&P 500’s decline of 0.9%.
Factors Favoring the Stock
MRC Global’s business in the gas utility sector has been experiencing strength, supported by a solid increase in customer activity. For 2022, revenues from its business in the gas utility sector are expected to grow in double-digit percentage, supported by higher gas distribution system integrity management and new home construction activities. Also, strength across the company’s upstream, midstream, downstream, energy transition and industrial sectors bodes well in the quarters ahead. For 2022, it anticipates total revenues of $3 billion, suggesting growth of 12.4% year over year.
The company has been benefiting from several large contracts with gas utilities and refiners in the United States. Also, MRC Global’s focus on expanding its market share, improving operational productivity and working capital efficiency is expected to strengthen its performance going forward.
It remains committed to rewarding shareholders through dividend payments. In 2021, the company used $24 million to pay out dividends to its shareholders. Also, the reduction of debts remains a priority. In 2021, it reduced its long-term debt by $86 million.
The Zacks Consensus Estimate for MRC Global’s earnings is pegged at 83 cents for 2022, up 33.9% from the 60-day-ago figure. The consensus estimate for 2023 earnings stands at $1.11, having moved 35.4% north over the same time frame.
Other Key Picks
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
In the past 60 days, Tenaris’ earnings estimates have increased 28.4% for 2022. TS’ shares have surged 42.5% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 12.98%.
In the past 60 days, Valmont’s earnings estimates have increased 3% for 2022. VMI’s shares have gained 1.2% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.
In the past 60 days, Ferguson’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). FERG’s shares have lost 11.8% in the past six months.
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MRC Global (MRC) Up 38.3% in 6 Months: What's Driving the Rally?
MRC Global Inc. (MRC - Free Report) performance has been impressive over the past six months, evident from a 38.3% increase in its share price. Strength across end markets, solid product offerings, operational productivity initiatives and strong capital-allocation strategies supported positive market sentiments for the company.
Image Source: Zacks Investment Research
The Houston, TX-based firm, with $975.1 million of market capitalization, belongs to the Zacks Steel - Pipe and Tube industry. It currently carries a Zacks Rank #2 (Buy).
In the past six months, MRC Global has outperformed its industry’s growth of 21.4% and the S&P 500’s decline of 0.9%.
Factors Favoring the Stock
MRC Global’s business in the gas utility sector has been experiencing strength, supported by a solid increase in customer activity. For 2022, revenues from its business in the gas utility sector are expected to grow in double-digit percentage, supported by higher gas distribution system integrity management and new home construction activities. Also, strength across the company’s upstream, midstream, downstream, energy transition and industrial sectors bodes well in the quarters ahead. For 2022, it anticipates total revenues of $3 billion, suggesting growth of 12.4% year over year.
The company has been benefiting from several large contracts with gas utilities and refiners in the United States. Also, MRC Global’s focus on expanding its market share, improving operational productivity and working capital efficiency is expected to strengthen its performance going forward.
It remains committed to rewarding shareholders through dividend payments. In 2021, the company used $24 million to pay out dividends to its shareholders. Also, the reduction of debts remains a priority. In 2021, it reduced its long-term debt by $86 million.
The Zacks Consensus Estimate for MRC Global’s earnings is pegged at 83 cents for 2022, up 33.9% from the 60-day-ago figure. The consensus estimate for 2023 earnings stands at $1.11, having moved 35.4% north over the same time frame.
Other Key Picks
Some other top-ranked stocks from the Zacks Industrial Products sector are discussed below.
Tenaris S.A. (TS - Free Report) presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Its earnings surprise in the last four quarters was 76.6%, on average.
In the past 60 days, Tenaris’ earnings estimates have increased 28.4% for 2022. TS’ shares have surged 42.5% in the past six months.
Valmont Industries, Inc. (VMI - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 12.98%.
In the past 60 days, Valmont’s earnings estimates have increased 3% for 2022. VMI’s shares have gained 1.2% in the past six months.
Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.
In the past 60 days, Ferguson’s earnings estimates have increased 7% for fiscal 2022 (ending July 2022). FERG’s shares have lost 11.8% in the past six months.