MRC Global Inc. MRC recently announced rewards for shareholders in the form of share buyback authorization. We believe that the repurchase program is in sync with its commitment to rewarding shareholders handsomely.

Under the buyback program, MRC Global has been authorized by its board of directors to repurchase up to $125 million worth of shares. Subject to market conditions and other factors, the buyback can be carried out in the open market or through privately negotiated transactions, including under Securities Exchange Act Rule 10b-18 and 10b-5-1 trading plans.

MRC expects to begin executing the buyback program in the second quarter and it will remain valid till Jan. 2, 2028. It's worth noting that in October 2024, the company repurchased all of its outstanding shares of the preferred stock.

MRC Global intends to augment its shareholders’ wealth over time. In the first nine months of 2024, the company’s dividend payments totaled $18 million. It also repurchased shares worth $5 million in the same period. In 2023, the company paid dividends of $24 million to shareholders and bought back shares worth $4 million.

Strong free cash flow generation capacity should aid MRC Global to continue rewarding its shareholders in the quarters ahead. In the first nine months of 2024, the company generated a free cash flow of $174 million compared with $82 million in the year-ago period.

Zacks Rank & Price Performance

MRC, with a $1.1 billion market capitalization, currently carries a Zacks Rank #3 (Hold). Its diverse presence across several end markets, including upstream production, midstream pipelines and industrial and energy transition, enables it to tap opportunities and neutralize operating risks associated with a single market. An increase in energy transition activities is benefiting the company’s DIET sector.

However, its performance is being affected by weakness in the Gas Utilities and Production & Transmission Infrastructure (PTI) sectors. While continued customer destocking and delayed project activity are affecting the Gas Utilities sector, a decrease in rig counts in the U.S. oil field due to the widespread consolidation of producers, particularly in the Permian Basin, is ailing the PTI sector.

MRC’s Price Performance

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The company’s shares have gained 4.1% compared with the industry’s 11.6% growth in the past three months.

The Zacks Consensus Estimate for MRC’s 2025 earnings has increased 3.2% over the past 60 days. It has a trailing four-quarter average earnings surprise of 60.5%.

3 Promising Stocks

Some better-ranked stocks from the same space are discussed below.

Mueller Water Products MWA presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 42.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for MWA’s fiscal 2025 earnings has been stable at $1.17 per share in the past 30 days.

Applied Industrial Technologies AIT presently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 4.9%.

In the past 30 days, the Zacks Consensus Estimate for AIT’s fiscal 2025 earnings has remained unchanged at $9.76 per share.

Gates Industrial GTES currently carries a Zacks Rank of 2. GTES delivered a trailing four-quarter average earnings surprise of 11.8%.

In the past 60 days, the Zacks Consensus Estimate for its 2025 earnings has been stable at $1.34 per share.

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Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report

MRC Global Inc. (MRC) : Free Stock Analysis Report

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