Maybe the best shine I can put on MSC Industrial's (MSM)
fiscal fourth quarter is that it was one of the better results in an
industry that has disappointed investors due to a slowdown in
manufacturing, the sequestration, and the stubborn lack of recovery in
construction. While MSC's organic revenue growth was weaker than that
reported by large rivals like Grainger (GWW) and Fastenal (FAST), at least some of that can be attributed to the company's greater focus on small manufacturing companies.
I'm
not looking for 2014 to be a banner year for industrial distributors,
but I believe MSC Industrial is still meaningfully undervalued. The
company is definitely vulnerable to further slowing in manufacturing and
more activity from Fastenal in areas like metalworking, but the
market's worries about MSC Industrial's cyclicality (worries that are
harder to dismiss given the company's relative performance) means that
investors can still take advantage of an undervalued stock.
Please follow this link to continue reading:
MSC Industrial Comes Through In A Tough Quarter
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