Latest news with #W.W.Grainger
Yahoo
3 days ago
- Business
- Yahoo
Is It Too Late To Consider Buying W.W. Grainger, Inc. (NYSE:GWW)?
Today we're going to take a look at the well-established W.W. Grainger, Inc. (NYSE:GWW). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on W.W. Grainger's outlook and valuation to see if the opportunity still exists. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. W.W. Grainger appears to be overvalued by 22% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$1,088 on the market compared to our intrinsic value of $892.94. This means that the opportunity to buy W.W. Grainger at a good price has disappeared! But, is there another opportunity to buy low in the future? Since W.W. Grainger's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for W.W. Grainger Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by a double-digit 13% over the next couple of years, the outlook is positive for W.W. Grainger. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has well and truly priced in GWW's positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe GWW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on GWW for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for GWW, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for W.W. Grainger you should be aware of. If you are no longer interested in W.W. Grainger, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Business
- Yahoo
Is It Too Late To Consider Buying W.W. Grainger, Inc. (NYSE:GWW)?
Today we're going to take a look at the well-established W.W. Grainger, Inc. (NYSE:GWW). The company's stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on W.W. Grainger's outlook and valuation to see if the opportunity still exists. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. W.W. Grainger appears to be overvalued by 22% at the moment, based on our discounted cash flow valuation. The stock is currently priced at US$1,088 on the market compared to our intrinsic value of $892.94. This means that the opportunity to buy W.W. Grainger at a good price has disappeared! But, is there another opportunity to buy low in the future? Since W.W. Grainger's share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for W.W. Grainger Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by a double-digit 13% over the next couple of years, the outlook is positive for W.W. Grainger. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has well and truly priced in GWW's positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe GWW should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on GWW for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the positive outlook is encouraging for GWW, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 2 warning signs for W.W. Grainger you should be aware of. If you are no longer interested in W.W. Grainger, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
2 Incredible Dividend Growth Stocks to Buy Now
Dividend growth stocks often deliver returns that are superior to the benchmark S&P 500. AbbVie and W.W. Grainger are elite dividend growth stocks that would be solid additions to any income-focused portfolio. 10 stocks we like better than AbbVie › Dividend growth stocks have long been reliable engines of wealth creation. Historically, companies with 10-year annualized dividend growth rates above 6% have consistently outperformed the S&P 500. The reason is simple. Sustained dividend growth typically signals strong underlying business fundamentals. Businesses that can raise their payouts at a high single-digit-percentage clip (or more) each year tend to deliver stable earnings and generate ample free cash flow -- two hallmarks of long-term financial strength. So, which dividend growth stocks stand out as compelling buys right now? Pharmaceutical powerhouse AbbVie (NYSE: ABBV) and industrial distributor W.W. Grainger (NYSE: GWW) are both time-tested performers with stellar dividend growth records. Here's why these top dividend growers are worth buying and holding as part of a well-diversified income portfolio. AbbVie is one of healthcare's most reliable dividend payers, offering investors a compelling combination of current income and long-term growth. At the current share price, the pharmaceutical giant's payout yields 3.5% -- well above the S&P 500's modest 1.3% yield. Best of all, AbbVie sports an incredible 53-year streak of dividend increases (if one includes the period when it was still a part of Abbott Laboratories, before its 2013 spinoff). What makes AbbVie particularly attractive, though, is its valuation relative to its bottom line. The stock trades at just 15.3 times forward earnings, a substantial discount to the S&P 500's 21.4 forward price-to-earnings ratio. While its 268% payout ratio might alarm some investors, AbbVie's growing cash flows should be sufficient to support the dividend over the next several years, despite the looming challenges of Humira losing patent protection and the potential for downward pressure on drug prices stemming from a recent executive order signed by President Donald Trump. Most impressively, AbbVie has delivered dividend growth at a blistering 13.2% annualized rate over the past 10 years, showcasing management's commitment to rewarding shareholders. This top pharmaceutical stock thus offers income-focused investors a rare combination of an above-average yield, double-digit percentage dividend growth, five-plus decades of annual dividend increases, and an attractive valuation relative to the broader market. W.W. Grainger ranks among the most consistent dividend payers in the industrial sector, offering investors steady income growth backed by a rock-solid business model. While its 0.8% yield at current share prices will appear modest at first glance, the company's 53-year streak of annual dividend increases demonstrates management's unwavering commitment to its shareholders. What's more, Grainger's conservative 21% payout ratio provides ample room for continued dividend growth well into the future. From a valuation perspective, W.W. Grainger stock trades at 27.2 times forward earnings -- a premium to the S&P 500. However, this premium is increasingly justified by the company's strengthening competitive position. W.W. Grainger offers an unparalleled breadth of products and an extensive distribution network that creates powerful economies of scale. These advantages allow it to generate higher margins and returns than smaller competitors, even as it faces challenges from e-commerce giants like Amazon. W.W. Grainger's dividend growth story is supported by two powerful tailwinds: an intensifying skilled labor shortage that's driving businesses to outsource non-core functions to specialists, and ongoing opportunities to expand its product catalog to capture greater wallet share from existing customers. These tailwinds ought to provide significant opportunities for the company in the years ahead. With a 6.7% annualized dividend growth rate over the past 10 years, disciplined capital allocation, and a proven ability to adapt to changing market conditions, W.W. Grainger stock offers an attractive combination of dividend reliability, moderate growth, and a wide competitive moat, making it a superb addition to an income-focused portfolio. Before you buy stock in AbbVie, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AbbVie wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in AbbVie and Abbott Laboratories. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Amazon. The Motley Fool has a disclosure policy. 2 Incredible Dividend Growth Stocks to Buy Now was originally published by The Motley Fool
Yahoo
15-05-2025
- Business
- Yahoo
GWW Q1 Earnings Call: Tariffs and Supply Chain Uncertainty Shape Outlook Despite Steady Results
Maintenance and repair supplier W.W. Grainger (NYSE:GWW) met Wall Street's revenue expectations in Q1 CY2025, with sales up 1.7% year on year to $4.31 billion. On the other hand, the company's full-year revenue guidance of $17.85 billion at the midpoint came in 0.7% below analysts' estimates. Its non-GAAP profit of $9.86 per share was 3.6% above analysts' consensus estimates. Is now the time to buy GWW? Find out in our full research report (it's free). Revenue: $4.31 billion vs analyst estimates of $4.31 billion (1.7% year-on-year growth, in line) Adjusted EPS: $9.86 vs analyst estimates of $9.51 (3.6% beat) Adjusted EBITDA: $733 million vs analyst estimates of $709 million (17% margin, 3.4% beat) The company reconfirmed its revenue guidance for the full year of $17.85 billion at the midpoint Adjusted EPS guidance for the full year is $40.25 at the midpoint, missing analyst estimates by 0.6% Operating Margin: 15.6%, in line with the same quarter last year Free Cash Flow Margin: 12.1%, similar to the same quarter last year Organic Revenue rose 4.4% year on year, in line with the same quarter last year Market Capitalization: $51.39 billion W.W. Grainger's first quarter results reflected steady execution amid an unpredictable market landscape. On the earnings call, management cited stable demand across key customer segments, improved gross margins through product mix, and the company's ongoing investments in digital capabilities as the primary drivers of the quarter. CEO Donald Macpherson noted that, despite muted industrial demand and continued tariff discussions, the business maintained its focus on operational reliability and customer support, emphasizing the critical role of on-site execution in meeting customer needs. Looking ahead, management's full-year guidance reflects caution in the face of ongoing tariff uncertainty and shifting supply chain dynamics. CFO Deidra Merriwether highlighted that while tariff-driven cost increases have so far been modest, future impacts remain difficult to predict. She explained, 'Our goal will be to mitigate impacts to our business and achieve price-cost neutrality over time,' but warned that extended or escalated tariffs could challenge both pricing and sourcing strategies. Management reaffirmed its commitment to transparency with customers and preserving healthy operating margins, while acknowledging the need to remain agile as more clarity emerges throughout the year. Management's commentary highlighted the complexity of navigating external headwinds, particularly tariffs, and the importance of product mix and supply chain flexibility in shaping first quarter outcomes. The team stressed that while demand trends remained muted, strategic actions in pricing, sourcing, and digital engagement provided some insulation against volatility. Tariff Response Measures: Management detailed initial pricing actions on direct imports affected by new tariffs, but emphasized that most products have not seen price increases as the company waits for greater clarity from suppliers. The goal is to maintain price-cost neutrality, but the ultimate impact depends on the duration and extent of tariffs. Segment Divergence: The 'Endless Assortment' segment, which includes Zoro and MonotaRO, posted double-digit growth in local currency, significantly outpacing the core High-Touch Solutions business. Zoro's strong performance was attributed to improved retention and growing mid-sized business adoption, while MonotaRO benefited from enterprise customer momentum and efficiency gains. Private Label Sourcing Risks: Management acknowledged that private label products are more exposed to China-based sourcing compared to national brands. While some efforts have been made to diversify, certain categories lack alternatives, making them especially sensitive to sustained tariff escalation. Gross Margin Stability: Despite SG&A cost pressures, gross margin improvements—driven by favorable product mix and supplier funding—helped offset deleverage in operating expenses during the quarter. The company expects these benefits to normalize as the year progresses. Customer Demand Patterns: While the macroeconomic environment remains muted, pockets of relative strength were observed in contractors, healthcare, and aerospace, offsetting weakness in government and some manufacturing segments. Management reported limited customer anxiety about tariffs so far, but noted that impacts could emerge in later quarters as inventory cycles adjust. Management's outlook for the remainder of the year centers on the company's ability to balance inflationary cost pressures from tariffs with disciplined pricing and continued investment in digital and supply chain capabilities. Tariff and Pricing Dynamics: The evolving tariff landscape will be a key test. Management aims to pass along cost increases without eroding demand, but acknowledges that higher or sustained tariffs could require more aggressive pricing actions or sourcing shifts, with uncertain customer response. Segment Mix and Growth: The faster expansion of the Endless Assortment segment could continue to support top-line growth but may create margin headwinds due to its lower profitability profile compared to High-Touch Solutions. Management is monitoring this mix shift closely. Operational Agility: The company's ability to flex sourcing, manage inventory, and leverage its product information systems is viewed as a competitive advantage in adapting to unpredictable supply chain and demand environments. David Manthey (Baird): Asked if Zoro's improved margins are sustainable or simply tied to this quarter's sales strength. Management stated that margin leverage should continue if revenue growth remains solid and expense growth is contained. Jacob Levenson (Melius Research): Sought clarity on how quickly Grainger can shift sourcing to avoid tariff impacts. Management said alternative sourcing is possible in some categories but noted certain products have no viable substitutes outside China, making tariff exposure unavoidable. Ryan Merkel (William Blair): Inquired about observed macro trends and customer reactions to tariffs. CEO Donald Macpherson reported no material slowdown yet, with most customers focused on operational continuity rather than tariff concerns, though effects may be delayed due to inventory cycles. Christopher Snyder (Morgan Stanley): Questioned the company's ability to maintain gross margins amid rising costs. CFO Deidra Merriwether said initial price increases related to tariffs have been modest and the goal remains price-cost neutrality, but further action may be needed if tariffs persist or escalate. Patrick Baumann (J.P. Morgan): Asked about the relative pricing and gross margin differences between private label and branded products, and how much private label risk exists if tariffs spike. Management replied that while some private label items may become uncompetitive under high tariffs, overall gross margin impact should be manageable given current sourcing diversity. In upcoming quarters, the StockStory team will be watching (1) whether additional tariff rounds prompt more significant pricing actions or sourcing changes, (2) how the mix shift toward Endless Assortment affects overall margins and growth, and (3) the pace at which supplier negotiations and cost pass-throughs are completed. We will also monitor emerging signs of customer demand changes as existing inventory cycles run off and tariff impacts work through the broader supply chain. W.W. Grainger currently trades at a forward P/E ratio of 25.7×. Should you double down or take your chips? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
W.W. Grainger, Inc. (GWW): Among Benjamin Graham Stocks for Defensive Investors
We recently published a list of . In this article, we are going to take a look at where W.W. Grainger, Inc. (NYSE:GWW) stands against other Benjamin Graham stocks for defensive investors. Markets in early 2025 are a bit like a moody spring—75 degrees one day, stormy the next. After a strong run in 2023 and 2024, the S&P 500 dropped over 5% year-to-date as investors digested a mix of policy uncertainties, uncertainty around interest rate cuts, and pockets of corporate underperformance. Many stocks are being re-priced as investors grow more selective, and earnings outlooks weaken. At the same time, the bond market is quietly signaling a shift. Treasury yields are still elevated, but there's a growing sense that the Fed may be near the end of its hiking cycle. That has made Treasury and investment-grade bonds more attractive, especially compared to volatile equities. The market is in transition. Investors are moving from chasing momentum to seeking quality. Caution, realism, and discipline are back in style, and so are value stocks. Preparing for a potential recession is less about panic and more about applying timeless principles—many of which were championed by Benjamin Graham, the father of value investing. Graham taught that the key to long-term investment success lies in discipline, patience, and a deep understanding of value. In uncertain economic times, those lessons are more relevant than ever. Graham said in his book 'The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). In the short run, the market is a voting machine but in the long run, it is a weighing machine.' Rather than trying to time the market, investors should focus on building a portfolio grounded in quality and resilience. Graham favored companies with strong fundamentals, conservative balance sheets, and consistent earnings power—attributes that tend to shine when the economy slows. Dividend-paying stocks with a history of reliability also fit neatly into Graham's framework, offering both income and a margin of safety. Graham said in The Intelligent Investor: 'The essence of investment management is the management of risks, not the management of returns.' Diversification, another core tenet of Graham's philosophy, helps investors avoid overexposure to any one sector or asset class. Holding a variety of investments—equities, bonds, and even cash—can smooth returns and provide flexibility. Graham often emphasized the importance of keeping a cash reserve, not just for protection, but as a source of opportunity when market prices become irrationally low. Graham said, 'The investor's chief problem—and even his worst enemy—is likely to be himself.' Emotional discipline, especially during turbulent markets, is essential. By remaining rational, reassessing risk exposure, and maintaining a long-term mindset, investors can navigate recessionary periods with the confidence that volatility, like all market conditions, is temporary—and often presents some of the best chances to buy quality assets at a discount. We used the Classic Benjamin Graham Stock Screener by Graham Value to compile a list of the 10 Benjamin Graham stocks for defensive investors. We considered the top 20 stocks on our screen and picked the ones with the highest number of hedge fund investors, as of Q4 2024. The stocks are sorted in ascending order of hedge fund sentiment. At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A portrait of an industrial worker wearing safety equipment, smiling while inspecting a piece of equipment. Number of Hedge Fund Holders: 49 W.W. Grainger, Inc. (NYSE:GWW) is a leading distributor of MRO products and services, operating mainly in North America, Japan, and the UK. Its strategic framework, 'The Grainger Edge,' guides the company's purpose—We Keep the World Working®—and outlines expected behaviors. Grainger operates through two segments: High-Touch Solutions N.A., offering expert, value-added service for complex needs; and Endless Assortment, an online platform through Zoro and MonotaRO. It also includes other smaller businesses like Cromwell in the UK and a captive insurance unit. In Q1 2025, W.W. Grainger, Inc. (NYSE:GWW) reported a sales increase of 4.4% year-over-year to $4.31 billion, while operating margins remained strong at 15.6%, and EPS reached $9.86. High-Touch Solutions saw modest growth despite early softness due to weather and government delays, while Endless Assortment grew over 15%, led by strong results at Zoro and MonotaRO. April daily sales rose approximately 5.5%, showing improved momentum. Government demand, particularly in sectors affected by DOGE, was somewhat soft, though the company is primarily exposed to military and state-level agencies, limiting broader impact. The company's manufacturing segments, notably aerospace, continue to see strong performance. The company confirmed that private label goods are more heavily exposed to China, although total reliance on Chinese manufacturing has decreased slightly over the years due to shifts to countries like Vietnam and Mexico. Overall, GWW ranks 2nd on our list of Benjamin Graham stocks for defensive investors. While we acknowledge the growth potential of GWW, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GWW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
