Tuesday, July 14, 2015

Seeking Alpha: The Going Is Getting Tougher At MSC Industrial

With market conditions going from "not great" to "weak", the road ahead of MSC Industrial (NYSE:MSM) is getting tougher in the short term. Overall economic weakness is a concern for the entire industrial MRO distributor space, but with the company's higher leverage to heavy industry (particularly metalworking/cutting) relative to Grainger (NYSE:GWW) and Fastenal (NASDAQ:FAST), it has more to worry about in the near term.

I don't think this is a great stock for short-term investors, unless you believe that there's a high probability that U.S. manufacturing will stage a sharp rebound over the next few months. Longer term, I continue to believe that MSC Industrial is a well-run MRO distributor with ample opportunities to gain share, expand into adjacent markets, and play a part in consolidating the industry.

Read the full article here:
The Going Is Getting Tougher At MSC Industrial

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