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Here's Why W.W. Grainger (GWW) is a Strong Value Stock

Zacks Equity Research
·2 min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

W.W. Grainger (GWW)

Incorporated in 1928, IL-based W.W. Grainger Inc. is a broad line, business-to-business distributor of maintenance, repair and operating (MRO) products and services. Its operations are primarily in North America, Japan and the U.K. Its customers represent a wide array of industries including government, manufacturing, transportation, commercial and contractors. Its products include material-handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, and metalworking tools.

GWW boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of W.W. Grainger are trading at a forward earnings multiple of 23.1X, as well as a PEG Ratio of 1.8, a Price/Cash Flow ratio of 21.8X, and a Price/Sales ratio of 2.7X.

Many value investors pay close attention to a company's earnings as well. For GWW, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $39.34 per share for 2024. Per share GWW boasts an average earnings surprise of 3.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding GWW to their portfolios.

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W.W. Grainger, Inc. (GWW) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research