This past month I picked up shares of W.W. Grainger (GWW) for my Covestor Buy and Hold Model on March 12, 2012, at a cost of $212.98/share. GWW closed at $214.81 down $(2.74) or (1.26)% on the day, slighly ahead of my own purchase price. Let's take a closer look at the business, the fundamentals of performance, some of the valuation figures and finally the technicals of the price chart.
According to the Yahoo "Profile" on W.W. Grainger (GWW), the company
"... provides material handling equipment, safety and
security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, fasteners, instruments, welding and shop equipment, and various other items for facilities maintenance market; and services comprising inventory management and energy efficiency solutions. Its customers include small and medium-sized businesses to large corporations, government entities, and other institutions."
How is the business doing? On March 12, 2012, GWW reported strong February, 2012 sales, with an 18% increase aided by an additional selling day (21), higher prices, and higher volumes.
Examining their latest quarterly report, Grainger (GWW) reported 4th quarter results on January 25, 2012. Revenue came in at $2.08 billion, ahead of the $2.07 billion analysts were expecting according to FactSet Research, and earnings came in at $148.5 million or $2.04/share, or an adjusted $2.13/share ahead of last year's $132.2 million or $1.83/share while also exceeding expectations of $2.11/share. The company maintained guidance of $9.90 to $10.6/share for the 2012 fiscal year.
Longer-term, Grainger, according to the Morningstar.com 'Financials' has increased its revenue from $6.4 billion in 2007 to $8.07 billion in the trailing twelve months (TTM).