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Strength Seen in MRC Global (MRC): Can Its 14.1% Jump Turn into More Strength?

MRC Global Inc. (MRC) shares ended the last trading session 14.1% higher at $11.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.2% gain over the past four weeks.

MRC Global’s rally is largely driven by optimism over healthy improvement in the downstream and industrial end markets. In the first quarter of 2021, the company’s downstream and industrial sector sales increased 11% on a sequential basis, a trend which is likely to continue in the upcoming quarters, supported by higher repair, maintenance and turnaround work.

Price and Consensus

This energy products distributor is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +140%. Revenues are expected to be $661.1 million, up 9.8% 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 been revised 110% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 >>>>

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