/W_W_%20Grainger%20Inc_%20storefront-by%20ZikG%20via%20Shutterstock.jpg)
W.W. Grainger, Inc. (GWW), with a market cap of $56.4 billion, is a leading provider of safety, security, material handling, storage equipment, pumps, plumbing equipment, cleaning and maintenance tools, and metalworking and hand tools. The Illinois-based company operates through High-Touch Solutions N.A. and Endless Assortment segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," W.W. Grainger fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the industrial distribution industry. Its competitive edge lies in its diverse product offerings, advanced logistics infrastructure, and strong digital presence.
By delivering additional value through services like inventory management and expert technical support, Grainger builds strong customer relationships and stands out in the industrial supply market.
W.W. Grainger recently touched its 52-week high of $1,227.66 on Nov. 11 and is currently down 5.9% from the peak. GWW has gained 16.9% over the past three months, outpacing the Industrial Select Sector SPDR Fund’s (XLI) 8.1% gains during the same time frame.
Over the longer term, GWW stock looks even more appealing. GWW gained 41.4% over the past 52 weeks and 39.4% in 2024, outperforming XLI’s 26.1% gains over the past 52 weeks and 21.7% returns on a YTD basis.
To confirm the bullish trend, GWW has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since early September.
On Oct. 31, GWW posted its Q3 earnings report, and its shares rose marginally. Its EPS and revenue of $9.87 and $4.4 billion missed the market’s expectations. On the bright side, the company achieved a strong operating margin of 15.6% and generated $611 million in operating cash flow. Grainger returned $328 million to shareholders through dividends and share repurchases.
W.W. Grainger’s competitor, Applied Industrial Technologies, Inc. (AIT), has outperformed GWW. AIT has gained 62.6% over the past 52 weeks and 56.7% in 2024.
Among the 16 analysts covering the GWW stock, the consensus rating is a “Hold.” The stock currently trades above its mean price target of $1,124.
