W.W. Grainger (GWW) Dips More Than Broader Markets: What You Should Know
In the latest trading session, W.W. Grainger (GWW) closed at $521.13, marking a -1.97% move from the previous day. This change lagged the S&P 500's daily loss of 0.67%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.22%.
Heading into today, shares of the seller of maintenance and other supplies had gained 0.12% over the past month, outpacing the Industrial Products sector's loss of 1.04% and the S&P 500's loss of 3.76% in that time.
W.W. Grainger will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2022. In that report, analysts expect W.W. Grainger to post earnings of $7.19 per share. This would mark year-over-year growth of 27.26%. Our most recent consensus estimate is calling for quarterly revenue of $3.88 billion, up 15.16% from the year-ago period.
GWW's full-year Zacks Consensus Estimates are calling for earnings of $28.15 per share and revenue of $15.11 billion. These results would represent year-over-year changes of +41.89% and +16.07%, respectively.
Investors might also notice recent changes to analyst estimates for W.W. Grainger. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.32% higher. W.W. Grainger is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, W.W. Grainger currently has a Forward P/E ratio of 18.88. This represents a premium compared to its industry's average Forward P/E of 13.41.
Investors should also note that GWW has a PEG ratio of 1.45 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. The Industrial Services was holding an average PEG ratio of 1.49 at yesterday's closing price.
The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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