Seven months later, and not all that much has changed for me in regards to W.W. Grainger (NYSE:GWW). The company continues to have important, differentiating growth drivers in the short term, but long-term concerns about margins and valuation. Still, that debate continues now from a higher valuation, as the shares have climbed almost 20% since my last update, beating the S&P 500, industrials in general, and specific distributors like Fastenal (FAST) and MSC Industrial (MSM).
In that last update, I thought Grainger at least had the virtue of a differentiated growth story to separate it from what I thought was an expensive overall industrial sector. With a lot of quality industrials taking a beating since then, I see that as a less compelling argument and I don’t find as much to like at this price.
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W.W. Grainger Continues To Ride High As Company-Specific Strategic Initiatives Produce Results
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