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MRC Global's (MRC) Stock Looks Bullish on Growth Drivers

On Dec 12, 2016, we issued an updated research report on MRC Global Inc.MRC .

Growth Drivers

MRC Global's stock looks promising at the moment. Post third-quarter 2016 earnings release, the Zacks Rank #2 (Buy) stock recorded an average return of 55.00%, outperforming 26.83% returns provided by the Zacks Categorized Steel Pipe & tubes industry.

The company attempts to boost its revenues on the back of superior customer relationship and product portfolio solidification. Also, meaningful organic deals are expected to boost revenue growth rate in the quarters ahead. For instance, the Enterprise Distributor Program (EDP) agreement signed in Oct 2016, with Cameron International, is likely to reinforce the company's ongoing multi-year strategy. Through this program, MRC Global aims to generate more than 40% of its revenues from automation, valves, instrumentation and measurement products.

In addition, MRC Global plans to enhance its competency through acquisitions and restructuring activities. The company aims to fortify its presence in the North American platform and focus on certain specified targeted areas of business, such as downstream, alloys & valves and MRO (maintenance, repair, and operations), with meaningful buyouts.

MRC Global is also committed toward its shareholders and tries to provide greater value to them through lucrative dividend and share buyback offers. For instance, in Nov 2016, the company sanctioned an increment in its ongoing share buyback program for common stock to $125 million from $100 million, sanctioned in Nov 2015. The revised share repurchase program is scheduled to expire on Dec 31, 2017.

Key Picks

Other favorably placed stocks in the industry include ACCO Brands Corporation ACCO , Alarm.Com Holdings, Inc. ALRM and Applied Industrial Technologies, Inc. AIT .

ACCO Brands Corporation has an average positive earnings surprise of 23.93% for the last four quarters and boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Alarm.Com Holdings, Inc.'s average positive earnings surprise for the four trailing quarters is 165.56%, with a Zacks Rank #2.

Applied Industrial Technologies, Inc., with a Zacks Rank #2, has an average positive earnings surprise of 4.93% for the trailing four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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