W.W. Grainger, whose TV catchphrase is "For the ones who get it done," is getting it done itself when it comes to profit and sales growth. On Thursday the Relative Strength (RS) Rating for Grainger stock climbed from 70 to 75.
Grainger distributes tools, lighting, plumbing and other maintenance products via over 246 branches. Its stock has risen to and through a series of all-time highs, in stair-step fashion, since the end of the Covid pandemic market crash. Grainger traded at 200.61 near the end of March 2020. It closed Thursday at 696.26, up just under 1% for the day, and up about 246% since March 2020.
Grainger Stock Among Top 18%
The upgraded 75 RS Rating means that Grainger stock tops 75% of all stocks for price performance this past year. Among its other ratings Grainger boasts a 95 EPS Rating, of a best-possible 99.
It has an 82 Composite Rating, a gauge of overall leadership. And its best-possible "A" SMR Rating (sales + profit margins + return on equity) on an A-to-E scale reflects strong fundamentals. Grainger has reported double-digit earnings growth four quarters in a row, and had three in a row for revenue until the most recent quarter. Last quarter Grainger reported 29% earnings growth to $9.28 per share on 9% higher revenue of $4.182 billion.
Looking For Winning Stocks? Try This Simple Routine
A Yellow Flag, A Bullish Indicator
Its only yellow flag is an E Accumulation/Distribution Rating, meaning ETFs, mutual funds and other institutional investors are selling more shares than buying. On the other hand, the number of funds holding Grainger shares rose from 2129 in the December-ended quarter to 2,174 in March and 2,195 in June, a bullish indicator.
W.W. Grainger stock holds the No. 4 rank among its peers in the Machinery-Tools & Related industry group. Enerpac Tool Group and Distribution Solutions are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
