W.W. Grainger (GWW - Free Report) closed at $310.56 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Coming into today, shares of the seller of maintenance and other supplies had gained 11.34% in the past month. In that same time, the Industrial Products sector lost 1.22%, while the S&P 500 lost 0.57%.
Wall Street will be looking for positivity from GWW as it approaches its next earnings report date. This is expected to be January 23, 2019. In that report, analysts expect GWW to post earnings of $3.57 per share. This would mark year-over-year growth of 21.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.79 billion, up 5.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.29 per share and revenue of $11.26 billion. These totals would mark changes of +42.15% and +7.97%, respectively, from last year.
Any recent changes to analyst estimates for GWW should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. GWW is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that GWW has a Forward P/E ratio of 18.8 right now. Its industry sports an average Forward P/E of 14.74, so we one might conclude that GWW is trading at a premium comparatively.
Also, we should mention that GWW has a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Industrial Services was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Industrial Services industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 113, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.