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W.W. Grainger: A Good Company, Cash Out Profits And Re-Enter Cheaply

Jun. 13, 2023 8:46 PM ETW.W. Grainger, Inc. (GWW)7 Comments
Fade The Market profile picture
Fade The Market


  • W.W. Grainger, Inc. has experienced solid growth due to its expansion plans, investment in e-commerce, and strong customer relationships.
  • The company's financial outlook is positive, with strong Q1 results and an upbeat outlook for the current year.
  • However, the current valuation suggests a downside potential, making it a good time for investors to cash out gains and wait for a cheaper entry point.

Opposite directions

Richard Drury/DigitalVision via Getty Images

Investment Thesis

W.W. Grainger, Inc. (NYSE:GWW) specializes in the skilled distribution of industrial supplies and machinery. Over the last five years, the company’s shares have been on an upward trajectory, gaining more than 126%. In fact, the shares

This article was written by

Fade The Market profile picture
"A fade is a contrarian investment strategy that involves trading against the prevailing trend."  We look at low-cap stocks that are not covered by mainstream investment firms in search of early opportunities spanning a variety of investment philosophies. The best opportunities are found when looking where others won't. Let us know if you want us to cover any specific tickers and we'll be sure to take a look! Formerly Moonshot Equity Analysis.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was researched and written by January Mbuvi of Fade The Market.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (7)

I was lucky enough to buy GWW in 2008 so I've got a 10-11 bagger with dividends reinvested and lived through much slower low single digit growth. With more reshoring of manufacturing going into the future and eps growth of say 15-20% and a PE around 20 seems reasonable. I'd like to see a 5 for 1 split to see the shares seem more reasonably priced and I realize it doesn't actually change anything but still. When I purchased the dividend growth streak was 37 years now I think it's 53!! Dividend king status
thirdcamper profile picture
@jimmy del greco Congrats. Buy and hold rules.
Wapiti19 profile picture
@jimmy del greco I agree on the stock split option. Been thru several of those.
Current share price is appreciated but scary for any future buy(ers).
They continue to impress with their vision and operations to adjust to market factors.
First stock I bought and still have.
Long since 1976.
Not quite yet. Longz GWW! :-)
berylrb profile picture
Interesting did you mention the dividend? A long investor like me, if I cashed out and wait for a cheaper entry point, how does ten plus years of dividends increases influence such a decision?
Fade The Market profile picture
@berylrb I kinda inclined towards value investors. For dividend investors I didn't run a model to project dividends but I can just do that right away and give my opinion.
berylrb profile picture
@Fade The Market Thanks GWW is on the low end of my portfolio w/r to dividend yield, but for 21 stocks my average yield is about 3.6
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