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Lake Forest, Illinois-based W.W. Grainger, Inc. (GWW) provides safety, security, material handling, and storage equipment, pumps and plumbing equipment, cleaning and maintenance tools, and metalworking and hand tools. With a market cap of $46.5 billion, the 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. It serves smaller businesses as well as large corporations, government entities, and institutions across various industries.
W.W. Grainger has slipped 6% from its 52-week high of $1,034.18, which is also its all-time high achieved on Mar. 21. GWW has gained 9% over the past three months, outpacing the Industrial Select Sector SPDR Fund’s (XLI) 4.5% gains during the same time frame.
Over the longer term, GWW stock looks even more appealing. GWW gained 40.9% over the past 52 weeks and 17.3% in 2024, outperforming XLI’s 21% gains over the past 52 weeks and 12.1% 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 mid-July.
Shares of W.W. Grainger dipped 3.5% after the release of its Q2 earnings on Aug. 1. The industrial supply company reported a 3.1% annual net sales growth, amounting to $4.3 billion. However, it fell short of Wall Street’s topline expectations. Despite the initial setback, GWW shares rebounded, gaining 1.1% in the subsequent trading session.
Its net income attributable to shareholders came in flat at $470 million. Its adjusted EPS grew by 5.2% year over year to $9.76, exceeding the EPS estimates by 1.9%.
W.W. Grainger’s competitor, Applied Industrial Technologies, Inc. (AIT), has underperformed GWW. AIT has gained 25.3% over the past 52 weeks and 14.2% in 2024.
Among the 11 analysts covering the GWW stock, the consensus rating is a “Hold.” The mean price target of $1,033.14 represents a potential upside of 6.3% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
