W.W. Grainger (GWW) Gains As Market Dips: What You Should Know
In the latest trading session, W.W. Grainger (GWW) closed at $693.54, marking a +0.08% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 1.06%.
Prior to today's trading, shares of the seller of maintenance and other supplies had lost 2.87% over the past month. This has lagged the Industrial Products sector's loss of 0.43% and the S&P 500's gain of 0.58% in that time.
Wall Street will be looking for positivity from W.W. Grainger as it approaches its next earnings report date. The company is expected to report EPS of $8.89, up 7.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 7.29% from the year-ago period.
GWW's full-year Zacks Consensus Estimates are calling for earnings of $36.03 per share and revenue of $16.62 billion. These results would represent year-over-year changes of +21.48% and +9.13%, respectively.
Any recent changes to analyst estimates for W.W. Grainger should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. W.W. Grainger is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, W.W. Grainger is currently trading at a Forward P/E ratio of 19.24. This represents a premium compared to its industry's average Forward P/E of 15.13.
We can also see that GWW currently has a PEG ratio of 1.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Industrial Services stocks are, on average, holding a PEG ratio of 0.89 based on yesterday's closing prices.
The Industrial Services industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report
