MRC Global Inc.’s MRC U.S. subsidiary signed a 15-year leasing pact with Liberty Property Trust LPT to open the former’s largest distribution center on the Gulf Coast. The company noted that the move would reinforce its operational efficacy and strengthen customer relationships over the long term.
Over the last one month, this Zacks Rank #2 (Buy) stock yielded a return of 7.60%, as against the loss of 2.57% incurred by the Zacks categorized Steel – Pipe and Tube industry. Notably, the stock currently carries a favorable Value Growth Momentum Style score ‘B’.
Inside the Headlines
Per the 15-year long leasing agreement, MRC Global would open an operational hub and a regional distribution center (RDC) in La Porte, TX. The warehouse space of the facility would be more than 400,000 square feet, while its office space would be over 75,000 square feet.
The company stated that the Gulf Coast RDC would supply traditional valve measurement, automation and instrumentation products, as well as oilfield supply, fitting and flange, carbon pipe and gas utility products. Notably, the facility would even supply high alloy and stainless product lines.
After completion, this RDC facility would combine inventory worth more than $60 million and employ over 150 workers. The company mentioned that these employees and the inventory would be transferred to the new facility from the four existing facilities currently supporting its projects and Maintenance, repair and operations (MRO) activities. Notably, MRC Global stated that this RDC would make use of state-of the-art warehousing technologies in the industry.
MRC Global also intends to relocate its operations at Darien Street in Houston and Galena Park, TX. The move is in sync with the company’s intentions to offer seamless and efficient services to the Gulf Coast customers.
The company anticipates that the distribution centre would commence operations from late 2017 and its adjacent offices would be equipped by third-quarter 2018.
Other Stocks to Consider
Other top-ranked stocks in the industry are listed below:
Caterpillar Inc CAT delivered a positive average earnings surprise of 40.25% for the trailing four quarters and currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies, Inc. AIT, which sports a Zacks Rank #1 at present, pulled off a positive average earnings surprise of 9.78% for the last four quarters.
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