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MSC Industrial Direct (MSM) is set to report earnings before the market opens today, July 1. Here are 5 factors to consider ahead of the earnings release.

1. The stock has performed well over the last year: MSC Industrial Direct's stock has gained 44.13% over the last year, outperforming the S&P 500 index. The stock is currently trading on the upper end of its 52-week range.

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2. MSC Industrial Direct's short term liquidity improved during the most recent quarter: The company's quick ratio increased from 1.51 to 1.74, while working capital improved from $0.4075B to $0.44861B, which represents about 13.9% of its market cap.

3. MSC Industrial Direct's cash holdings increased during the most recent quarter: The company's Cash / Share ratio increased from $2.21 to $3.89, which represents about 7.61% of the current stock price. Cash, as a percentage of Current Assets, changed from 21.5% to 33.8% during the most recent quarter.

4. Analyst's have become increasingly bullish on the stock over the last few months: The following chart shows how the average analyst rating for MSM has increased over the last few months.

5. Most of the growth during their last quarter came from big accounts: Commenting on the first quarter results, president and chief executive officer David Sandler said, "While customers continue to watch spending carefully, average daily sales improved during the quarter. Much of the improvement came from our large accounts, where demand has recovered more quickly than our more traditional customer base."

Disclosure: No position

Source: MSC Industrial Direct: 5 Factors to Consider Ahead of Earnings