MRC Global Gets PVF Deal From ExxonMobil in North America

MRC Global Inc. MRC recently announced that its subsidiary, MRC Global (US) Inc., has secured a contract from ExxonMobil Corporation XOM. Per the deal, MRC Global to serve as the primary supplier of pipe, valves and fitting (PVF) products and services to ExxonMobil in North America.
MRC Global's shares declined 2.1% yesterday, ending the trading session at $12.46.
Based in Spring, TX, ExxonMobil is a leading explorer and producer of crude oil and natural gas in the United States and globally. The company operates its businesses under the four segments, which are Upstream, Energy Products, Chemical Products and Specialty Products.

Inside the Headlines

Per the deal, MRC will provide PVF products and related services across all of XOM's upstream and downstream facilities in North America. As noted, this will support ExxonMobil's global projects and maintenance, repair and operations.
The deal will also enable XOM to streamline and boost its PVF supply chain in North America and leverage its scale across its booming business in the region.

Zacks Rank & Price Performance

MRC Global, with a $1.1 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is likely to benefit from strength in the DIET (Downstream, Industrial and Energy Transition) sector, driven by an increase in energy transition activities in the United States. Also, an increase in refining, chemical and mining customer projects bode well.

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The company's shares have gained 2.4% against the industry's 9.6% decline in the past three months.
The Zacks Consensus Estimate for MRC's 2024 earnings per share is pegged at 95 cents, down 5% over the past 60 days. It has a trailing four-quarter average earnings surprise of 40.1%.

Key Picks

A couple of better-ranked companies from the same space are discussed below.
Valmont Industries VMI presently sports a Zacks Rank of 1 (Strong Buy).
It has a trailing four-quarter average earnings surprise of 13%. The consensus estimate for VMI's 2024 earnings has improved 6.9% in the past 60 days.
Mueller Water Products MWA presently carries a Zacks Rank of 2 (Buy). MWA delivered a trailing four-quarter earnings surprise of 51.8%, on average.
The Zacks Consensus Estimate for MWA's fiscal 2024 (ending September 2024) earnings has risen 14.5% in the past 60 days.

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