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MRC Global (MRC) Up 24.8% in 6 Months: What's Driving It?
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MRC Global Inc. (MRC - Free Report) appears in good shape, with its shares having rallied 24.8% over the past six months compared with the industry’s 13.3% increase.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
MRC Global is benefiting from new home construction activity in its gas utility sector. New energy transition-related projects, project turnaround activity as well as maintenance, repair and operations (MRO) activities are driving the company’s second-largest sector (downstream, industrial and energy transition) DIET sector.
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 generated 32.3% of revenues from valves, automation and measurement & instrumentation product line in the third quarter of 2022. MRC Global is likely to become more competent in attractive contract wins and projects.
MRC Global utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. In 2021 and during the first nine months of 2022, MRC paid out dividends worth $24 million and $18 million, respectively. It also bought back shares worth $2 million during the first nine months of 2022.
The company also focuses on reducing its debt. MRC reduced its net debt by $15 million and long-term debt by $86 million in 2021. In the first nine months of 2022, it repaid $275 million in borrowings under the revolving credit facilities.
Zacks Rank & Other Stocks to Consider
MRC sports a Zacks Rank #1 (Strong Buy) at present.
Some other top-ranked companies from the Industrial Products sector are discussed below:
Titan International, Inc. presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 49.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for TWI’s earnings have increased 1.8% for 2022. The stock has surged 12.8% in the past six months.
Xylem Inc. (XYL - Free Report) presently has a Zacks Rank of 2. XYL’s earnings surprise in the last four quarters was 13.3%, on average.
In the past 60 days, estimates for Xylem’s earnings have increased 0.1% for 2022. The stock has gained 35.1% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
Earnings estimates for ENS have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 24.1% in the past six months.
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MRC Global (MRC) Up 24.8% in 6 Months: What's Driving It?
MRC Global Inc. (MRC - Free Report) appears in good shape, with its shares having rallied 24.8% over the past six months compared with the industry’s 13.3% increase.
Image Source: Zacks Investment Research
Catalysts Behind the Price Surge
MRC Global is benefiting from new home construction activity in its gas utility sector. New energy transition-related projects, project turnaround activity as well as maintenance, repair and operations (MRO) activities are driving the company’s second-largest sector (downstream, industrial and energy transition) DIET sector.
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 generated 32.3% of revenues from valves, automation and measurement & instrumentation product line in the third quarter of 2022. MRC Global is likely to become more competent in attractive contract wins and projects.
MRC Global utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. In 2021 and during the first nine months of 2022, MRC paid out dividends worth $24 million and $18 million, respectively. It also bought back shares worth $2 million during the first nine months of 2022.
The company also focuses on reducing its debt. MRC reduced its net debt by $15 million and long-term debt by $86 million in 2021. In the first nine months of 2022, it repaid $275 million in borrowings under the revolving credit facilities.
Zacks Rank & Other Stocks to Consider
MRC sports a Zacks Rank #1 (Strong Buy) at present.
Some other top-ranked companies from the Industrial Products sector are discussed below:
Titan International, Inc. presently carries a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 49.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
In the past 60 days, estimates for TWI’s earnings have increased 1.8% for 2022. The stock has surged 12.8% in the past six months.
Xylem Inc. (XYL - Free Report) presently has a Zacks Rank of 2. XYL’s earnings surprise in the last four quarters was 13.3%, on average.
In the past 60 days, estimates for Xylem’s earnings have increased 0.1% for 2022. The stock has gained 35.1% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
Earnings estimates for ENS have increased 0.6% for fiscal 2023 in the past 60 days. The stock has gained 24.1% in the past six months.