Is W.W. Grainger Stock Underperforming the S&P 500?

With a market cap of $47.3 billion, W.W. Grainger, Inc. (GWW) is a broad-line distributor of maintenance, repair, and operating (MRO) products and services with operations. Headquartered in Lake Forest, Illinois, the company operates through two segments: High-Touch Solutions North America; and Endless Assortment.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks and W.W. Grainger fits this description perfectly. The company is an American Fortune 500 industrial supply company with products and solutions delivered through innovative technology and deep customer relationships. 

The seller of maintenance and other supplies declined 20.1% from its 52-week high of $1,227.66. In the past three months, W.W. Grainger has dipped 15.1%, underperforming the S&P 500 Index’s ($SPX) 8.4% decrease.

Longer term, GWW has fallen 6.9% on YTD, trailing SPX’s 5.3% decline. However, over the last 52 weeks, shares of W.W. Grainger have risen 1.8%, lagging behind the S&P 500, gaining nearly 8.9%.

GWW has traded above its 200-day moving average, but recently, the stock has fallen below the 200-day moving average. Despite some fluctuations, GWW is trading below its 50-day moving average.

Despite matching Street forecasts for Q4 2024 revenue of $4.2 billion, shares of GWW fell 5.6% on Jan. 31. Although the company missed its EPS guidance and reported $9.75. In addition, the company forecasts full-year earnings to be $39 to $41.50 per share. 

However, in comparison, rival Global Industrial Company (GIC) trailed GWW. Shares of GIC went down 48.9% over the past 52 weeks and decreased 7.3% on a YTD basis.

Due to the stock’s underperformance compared to broader markets, analysts are cautious about its prospects. GWW has a consensus rating of “Hold” from the 16 analysts covering the stock. As of writing, GWW is trading below the mean price target of $1,112.70.  

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.