Grainger jumps to three-month high on OPEC deal, pricing environment

|By:, SA News Editor

Grainger (GWW +2.2%) continues to hold solid gains after earlier touching its highest levels since August, reaffirming FY 2017 guidance and saying it expects lesser price decrease as it already has taken a “bunch of the action” this year.

“Investors expect that if oil prices recover, E&P activity in North America should again pick up and GWW would benefit with Canada going from a net drag to positive profitability,” Longbow Research analyst Chris Dankert tells Bloomberg.

The bulk of GWW’s oil exposure is in Canada, which is currently a drag on profit, Dankert says.