Zacks Investment Research downgraded
MRC Global Inc.
) to a Zacks Rank #4 (Sell) on Mar 19 on a weak earnings outlook
for 2013, despite reporting better- than-expected results in the
fourth quarter of 2012.
Why the Downgrade?
MRC Global has witnessed sharp downward estimate revisions
after guiding for lower than expected earnings for 2013. MRC
expects earnings in the range of $2.10 to $2.35 per share in
2013, which was below the Zacks Consensus Estimate of $2.43 at
the time of earnings announcement. Although the guidance was
higher compared to the 2012 levels, it missed the market
expectations, and, therefore, most of the estimates were revised
The Zacks Consensus Estimate for 2013 decreased 8.5% to $2.27
per share over the last 30 days, due to a downward revision of
more than 85% of the estimates. For 2014 also, a number of
estimates were revised downward over the same timeframe, sinking
the Zacks Consensus Estimate by 3.5% to $2.73 per share.
Moreover, MRC Global's upstream segment which experienced a
year-over-year decline in the fourth quarter of 2012 due to the
planned slowdown in the Oil Country Tubular Goods (OCTG) product
line is expected to face the same turbulence in the coming
Other Stocks to Consider
The following machinery tools companies with favorable Zacks
Rank are performing well and are worth considering.
ACTUANT CORP (ATU): Free Stock Analysis
MRC GLOBAL INC (MRC): Free Stock Analysis
PROTO LABS INC (PRLB): Free Stock Analysis
VALMONT INDS (VMI): Free Stock Analysis
To read this article on Zacks.com click here.
Valmont Industries Inc.
) carries a Zacks Rank #1 (Strong Buy)
Proto Labs Inc.
) carries a Zacks Rank #2 (Buy)
) carries a Zacks Rank #2 (Buy).