Here's Why W.W. Grainger (GWW) Fell More Than Broader Market
The most recent trading session ended with W.W. Grainger (GWW) standing at $816.01, reflecting a -1.71% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 1.47%. Meanwhile, the Dow lost 1.27%, and the Nasdaq, a tech-heavy index, lost 1.5%.
Coming into today, shares of the seller of maintenance and other supplies had gained 2.9% in the past month. In that same time, the Industrial Products sector gained 8.32%, while the S&P 500 gained 5.77%.
Market participants will be closely following the financial results of W.W. Grainger in its upcoming release. In that report, analysts expect W.W. Grainger to post earnings of $8.03 per share. This would mark year-over-year growth of 12.46%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.05 billion, indicating a 6.42% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $36.37 per share and revenue of $16.52 billion, which would represent changes of +22.62% and +8.51%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for W.W. Grainger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. W.W. Grainger currently has a Zacks Rank of #3 (Hold).
In terms of valuation, W.W. Grainger is presently being traded at a Forward P/E ratio of 22.83. This represents a premium compared to its industry's average Forward P/E of 16.05.
Investors should also note that GWW has a PEG ratio of 1.76 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Industrial Services industry held an average PEG ratio of 1.16.
The Industrial Services industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GWW in the coming trading sessions, be sure to utilize Zacks.com.
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W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
