W.W. Grainger continues to put up double-digit profit and sales growth, in part on U.S. infrastructure upgrade prospects. On Thursday, the IBD Relative Strength (RS) Rating for Grainger stock rose into a higher percentile, from 79 to 82, passing a milestone along the way.
The 82 RS Rating puts it in the top 18% for stock price performance this past year. Market research shows that the best stocks tend to have an 80 or better RS Rating in the early stages of their moves. Grainger stock just passed that milestone, putting it on the launchpad for a possible move higher.
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Grainger Stock Performance Good, Big Money Not Impressed
Among its other key ratings, Grainger stock has an 86 Composite Rating, putting it in the top 14% of all companies overall. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
Additionally, Grainger has an excellent 95 Earnings Per Share Rating and an A SMR Rating (sales + profit margins + return on equity), on an A-to-E scale with A tops and E worst.
Its one weak score is its E Accumulation/Distribution Rating, which shows that big funds are selling more shares than buying. Balancing that out a bit is the rising number of funds that hold Grainger shares. Over the last four quarters the number rose from 2,031 to 2,129, 2,174 and then 2,190 last quarter, a bullish indicator.
Shares Up 300% Since Covid Crash
Grainger stock has grown at a steady pace over the years. It's trading above its 200-day average and just below its 50 day.
Its stock roughly quadrupled from a 200.61 intraday low in late March 2020 amid the Covid market crash to a fresh all-time high 811.60 on July 14 this year. It's consolidated from there and traded around 700 Thursday afternoon. Grainger is not currently showing a potential buy point. See if the stock goes on to build a base that could kick off a new climb.
Grainger stock holds the No. 4 rank among its peers in the Machinery-Tools & Related industry group. Enerpac Tool Group and Distribution Solutions are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The unique IBD Relative Strength Rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
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