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MRC (MRC) Soars 5.3%: Is Further Upside Left in the Stock?

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MRC Global (MRC - Free Report) shares soared 5.3% in the last trading session to close at $13.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.6% gain over the past four weeks.

The increase in shares of the company can be attributed to the optimism surrounding easing supply chain disruptions and, reduction in raw material costs, thanks to deceleration in inflation.

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 +35.3%. Revenues are expected to be $872.18 million, up 27.1% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

MRC is a member of the Zacks Steel - Pipe and Tube industry. One other stock in the same industry, Tenaris S.A. (TS - Free Report) , finished the last trading session 0.8% higher at $35.45. TS has returned 0% over the past month.

Tenaris S.A.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.38. Compared to the company's year-ago EPS, this represents a change of +119.1%. Tenaris S.A. currently boasts a Zacks Rank of #1 (Strong Buy).


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