Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

HD Supply An Expensive Play On Construction And MRO

Admittedly, I have a thing for the industrial/MRO distribution sector - I own MSC Industrial (NYSE:MSM) and follow others like Fastenal (NASDAQ:FAST), Grainger (NYSE:GWW), and WESCO (NYSE:WCC) pretty closely. Although it's a very competitive space with a strong cyclical component, it's a fragmented market where companies with a good business plan (e.g. MSC Industrial and Fastenal) can really make a name for themselves.

Into this mix comes one of the bigger dogs in the yard - HD Supply (NASDAQ:HDS). Once part of Home Depot (NYSE:HD) and then sold to private equity, HD Supply has already enjoyed a pretty good post-IPO run, rising about one-third since its debut. Although...

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