|Bid||292.75 x 1000|
|Ask||292.89 x 1100|
|Day's Range||289.67 - 293.38|
|52 Week Range||255.09 - 361.17|
|Beta (3Y Monthly)||1.34|
|PE Ratio (TTM)||20.06|
|Forward Dividend & Yield||5.76 (1.97%)|
|1y Target Est||N/A|
Increase in profitability and industry-beating performance can be essential considerations in a stock for some...
I've been keeping an eye on W.W. Grainger, Inc. (NYSE:GWW) because I'm attracted to its fundamentals. Looking at the...
W.W. Grainger remains a highly profitable and growing company, even during the tariff spat with China, and is expected to offer big returns to shareholders.
Tesla (TSLA) and W.W. Grainger (GWW) are like those drivers motoring down the highway with the ever-blinking turn signal. Those following along behind are left wondering if that turn will ever come. Wall Street analysts clearly don't see any turnaround in these stocks. Let’s take a closer look. Slam on the Brakes with Tesla StockInvestors don’t have a lot to be excited about when it comes to the electric car manufacturer.Tesla has a history of overpromising and underdelivering, with the Street more willing to look past this as the company offered innovative and exciting technology. Now, Wall Street wants to see results that suggest a strong long-term growth narrative. Based on Tesla's second-quarter results, investors aren’t going to get what they’re looking for.Specifically, the earnings release revealed that losses were much larger than originally expected. Non-GAAP loss came in at $1.12 per share falling well below the $0.16 consensus estimate. Not to mention Tesla managed to burn through $333 million in cash, all while the company delivered a record breaking 158,000 vehicles.Based on the current economic climate, the situation could get worse for Tesla. If fears are correct and the economy heads into a recession, oil prices could plummet as they’ve done in the past. This would have a drastic effect on TSLA as one of the key benefits of electric vehicles is being able to avoid high gas prices.Joseph Spak, a five-star analyst according to TipRanks, doesn’t see gross margins improving anytime soon. He argues that TSLA’s profitability is tied to its full self-driving product, but the development team has experienced a high turnover rate. The company also can’t sell the product in the EU as regulation prohibits the feature.“So growth is likely to be on hiatus and we don't believe the valuation reflects this. That said, if there are material further price cuts, demand might be higher, but this would weigh on profitability,” Spak added. As a result, the RBC Capital analyst reiterated his Sell rating and $190 price target, as believes the stock could drop 16% over the next twelve months.All in all, most of Wall Street is growing impatient with this electric player’s stumbles, as TipRanks analytics demonstrate TSLA as a Sell. Based on 27 analysts polled in the last 3 months, 7 suggesting 'buy', 6 recommending 'hold,' while 14 advising 'sell.' Interestingly, the 12-month average price target stands at $245.62, which marks about 8% upside from where the stock is currently trading. (See TSLA’s price targets and analyst ratings on TipRanks) W.W. Grainger Stock Is Out of Favor on Wall StreetWhile the industrial supply company is slightly up year-to-date, Wall Street takes a firmly bearish stance on Grainger. With 3 Sell ratings received over the last three months, the consensus among analysts is that the stock is a ‘Strong Sell’.GWW’s Q2 performance was better than originally expected thanks to lower prices and volumes, but the company by no means went above and beyond with EPS matching the consensus estimate. Analysts originally expected poor earnings after weak results from its competitors, Fastenal and MSC Industrial. GWW also decreased its full year 2019 sales guidance to be between 2% and 5% year-over-year growth, down from the original 4% to 8.5% growth estimate.Despite GWW typically using a third of its operating cash flow to improve its base business, analysts are not seeing the level of growth they would like.4-star RBC Capital analyst Deane Dray adds, “Grainger has little pricing power in a low-inflation environment and is vulnerable at negative inflection points in the economy, given its short-cycle, no-backlog distribution model.”It doesn’t help that the Amazon Business service is now available in at least seven major international markets. Amazon Business poses a significant threat to Grainger’s Cromwell segment in the UK and Europe as well as Grainger’s 51% stake in Japan-based MonotaRO. Cromwell and MonotaRO account for 3% and 7%, respectively, of GWW’s total sales.Dray concludes that GWW is unlikely to meet its target long-term growth rate. “Looking ahead, the guidance cut to 2019 sales and lowered market growth assumptions point to a tougher second half of 2019 operating backdrop, and Grainger’s 300-400 bps of outgrowth assumption appears optimistic to us. Short-cycle industrials like Grainger look vulnerable here,” the analyst explained.Based on all of the above factors, the analyst reiterated his Sell rating and lowered the price target from $257 to $254, indicating 7% downside. (To watch Dray's track record, click here)
Today we are going to look at W.W. Grainger, Inc. (NYSE:GWW) to see whether it might be an attractive investment...
W.W. Grainger (GWW) delivered earnings and revenue surprises of -0.22% and -3.17%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Grainger (GWW) likely to gain on growing e-commerce sales, momentum in the United States, cost saving initiatives amid input cost inflation.
W.W. Grainger (GWW) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
W W Grainger Inc NYSE:GWWView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is low for GWW with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding GWW are favorable, with net inflows of $8.82 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that...
Today we're going to take a look at the well-established W.W. Grainger, Inc. (NYSE:GWW). The company's stock received...
(Bloomberg Opinion) -- The U.S. stock market has been surprisingly resilient in recent months despite signs that the U.S. economy is slowing. Behind the lofty broad market averages, however, disagreements are intensifying about the value of individual stocks, an indication that the overall outlook is increasingly uncertain. Friday’s jobs report was just the latest in a series of recently shaky economic numbers. Employers added 75,000 workers in May, well below estimates, bringing the four-month average to just 105,000 new jobs a month since February. The Institute for Supply Management’s manufacturing index dropped to 52.1 in May from its recent high of 60.8 in August. Inflation is struggling to reach the Federal Reserve’s target of 2% a year. And those numbers don’t yet fully reflect the negative impact of the U.S.’s deepening trade dispute with China, never mind the White House’s threatened tariffs on other trading partners.The bond market is clearly concerned. The yield on 10-year Treasuries has tumbled to 2.1% from 3.2% in November. Perhaps more noteworthy, the spread between the yield on 10-year and three-month Treasuries is a negative 0.2%, the deepest inversion since the run-up to the 2008 financial crisis. The stock market, on the other hand, shows few signs of stress. The S&P 500 Index is hanging around its all-time high. The CBOE Volatility Index, or VIX, which measures expected volatility for the S&P 500 over the next 30 days, is up modestly in recent weeks but nowhere near the levels notched in December or in previous bouts of anxiety. And analysts’ price target for the S&P 500 is a hopeful 3,183.88 as of Friday, or 10% higher than the index’s current price.Look closer, however, and cracks begin to appear. Analysts rarely agree on how stocks should be priced, but the degree of disagreement varies considerably over time. As the outlook becomes murkier, the disagreements escalate.One way to measure the level of those disagreements is by comparing analysts’ high and low price targets for individual stocks. I looked at the price targets for each stock in the Russell 1000 Index over the last 15 years, the longest period for which numbers are available. In 2004, the economy was well into its recovery from the dot-com bust a few years earlier. The median premium, or the percentage by which the top price target was higher than the bottom, was 21%. But as the recovery matured in subsequent years and the economic outlook became cloudier, the differences between those high and low price targets widened. By 2008, the median premium nearly doubled to 36%, and as the economy struggled to recover from the financial crisis in 2009, the median premium spiked to 53%.When the crisis eased, so did the disagreements. The median premium fell to 33% in 2010 and hung around that level through 2017. That began to change last year, however. The median premium rose to 38% in 2018 and is now 44%, the highest reading since 2009.The disagreement over the value of Tesla Inc.’s stock is probably best known, but Tesla is far from the only controversy. Tesla’s high price target is $530 a share and the low is $54, according to Bloomberg data, which is a whopping premium of 881%. And yet it ranks just 19th among the highest premiums in the Russell 1000.The 18 stocks that precede Tesla represent seven industries and include names such as Cboe Global Markets Inc., with a premium 1,176%, WW Grainger Inc., with a premium of 1,950%, Alleghany Corp., with a premium of 3,082%, and the reigning champion O’Reilly Automotive Inc., with a premium of 6,614%.None of this means that the market is poised for a fall. But it does mean that the outlook for U.S. stocks is more uncertain than it has been for many years, and that the broad market averages are not as sure-footed as they appear.To contact the author of this story: Nir Kaissar at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nir Kaissar is a Bloomberg Opinion columnist covering the markets. He is the founder of Unison Advisors, an asset management firm. He has worked as a lawyer at Sullivan & Cromwell and a consultant at Ernst & Young. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.