W.W. Grainger (GWW) Stock Dips While Market Gains: Key Facts
The latest trading session saw W.W. Grainger (GWW) ending at $804.05, denoting a -0.41% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.45%.
The seller of maintenance and other supplies's stock has climbed by 3.28% in the past month, falling short of the Industrial Products sector's gain of 6.76% and the S&P 500's gain of 4.91%.
The upcoming earnings release of W.W. Grainger will be of great interest to investors. The company is expected to report EPS of $8.03, up 12.46% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.05 billion, showing a 6.42% escalation compared to the year-ago quarter.
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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for W.W. Grainger. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. At present, W.W. Grainger boasts a Zacks Rank of #3 (Hold).
Looking at valuation, W.W. Grainger is presently trading at a Forward P/E ratio of 22.2. For comparison, its industry has an average Forward P/E of 14.29, which means W.W. Grainger is trading at a premium to the group.
It's also important to note that GWW currently trades at a PEG ratio of 1.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Industrial Services industry had an average PEG ratio of 1.03.
The Industrial Services industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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
