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W.W. Grainger, Inc. (GWW), headquartered in Lake Forest, Illinois, distributes maintenance, repair, and operating products and services. Valued at $53.6 billion by market cap, the company's products include motors, HVAC equipment, lighting, hand and power tools, pumps, packaging, material handling, adhesives, safety, janitorial, electrical, and metalworking equipment.
Shares of this MRO giant have underperformed the broader market over the past year. GWW has gained 10% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 13%. However, in 2026, GWW stock is up 11.7%, surpassing the SPX’s marginal rise on a YTD basis.
Narrowing the focus, GWW’s underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 28.6% over the past year. Moreover, the ETF’s 14.3% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Feb. 3, GWW shares closed up more than 5% after reporting its Q4 results. Its EPS of $9.44 surpassed Wall Street expectations of $9.43. The company’s revenue was $4.43 billion, surpassing Wall Street forecasts of $4.40 billion. GWW expects full-year EPS in the range of $42.25 to $44.75, and revenue in the range of $18.7 billion to $19.1 billion.
For fiscal 2026, ending in December, analysts expect GWW’s EPS to grow 10.6% to $43.66 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 19 analysts covering GWW stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, 12 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is more bullish than a month ago, with three analysts suggesting a “Strong Buy.”
On Feb. 20, Barclays PLC (BCS) analyst Guy Hardwick maintained a “Sell” rating on GWW and set a price target of $1,044.
While GWW currently trades above its mean price target of $1,105.50, the Street-high price target of $1,300 suggests an upside potential of 15.3%.
