- 10 ноября 2018, 01:50
- Zacks Investment Research
W.W. Grainger (GWW) closed at $293.75 in the latest trading session, marking a +0.25% move from the prior day. This move outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.65%.
Coming into today, shares of the seller of maintenance and other supplies had lost 5.17% in the past month. In that same time, the Industrial Products sector lost 6.66%, while the S&P 500 lost 2.56%.
GWW will be looking to display strength as it nears its next earnings release, which is expected to be January 23, 2019. On that day, GWW is projected to report earnings of $3.57 per share, which would represent year-over-year growth of 21.43%. Our most recent consensus estimate is calling for quarterly revenue of $2.79 billion, up 5.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.29 per share and revenue of $11.26 billion. These totals would mark changes of +42.15% and +7.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for GWW. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.5% higher. GWW is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GWW is holding a Forward P/E ratio of 17.99. This valuation marks a premium compared to its industry's average Forward P/E of 15.
Also, we should mention that GWW has a PEG ratio of 1.45. 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 1.3 based on yesterday's closing prices.
The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% 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.
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