/W_W_%20Grainger%20Inc_%20storefront-by%20ZikG%20via%20Shutterstock.jpg)
W.W. Grainger, Inc. (GWW) is a leading industrial supply company providing MRO products and services to businesses and institutions. With a market cap of $48.4 billion, it leverages e-commerce, catalogs, and physical branches to distribute safety gear, tools, and electrical supplies.
Shares of GWW have underperformed the broader market over the past year. GWW has gained 4.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.5%. Also, in 2025, the stock is down 4.4%, compared to the SPX’s 1.3% rise on a YTD basis.
Even within its sector, GWW lags behind, with the Industrial Select Sector SPDR Fund (XLI) rising 12.5% over the past year and 2.5% on a YTD basis.
On Jan. 31, W.W. Grainger reported solid Q4 and full-year 2024 results, with Q4 sales rising 5.9% year over year to $4.2 billion and adjusted EPS surging 16.6% to $9.71. Full-year sales grew 4.2% to $17.2 billion, while adjusted EPS climbed 6.8% to $38.96.
The High-Touch Solutions segment saw steady growth of 4%, while the Endless Assortment segment expanded 15.1% in Q4. Looking ahead, Grainger expects 2025 sales between $17.6 billion and $18.1 billion, with EPS projected at $39.00–$41.50, signaling confidence in continued growth and profitability.
For the current fiscal year, ending in December, analysts expect GWW’s EPS to grow 3.4% year over year to $40.30 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 16 analysts covering GWW stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy” ratings, 13 “Holds,” and one “Moderate Sell.”
This consensus has been fairly consistent over the past months.
On Feb. 3, RBC Capital’s Deane Dray reiterated a “Sector-Perform” rating on W.W. Grainger while trimming the price target slightly from $1,113 to $1,112.
GWW’s mean price target of $1,122.70 represents a premium of 11.4% from the prevailing market prices. The Street-high price target of $1280 suggests an upside potential of 27%.
