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WW Grainger
(NYSE:GWW)
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Rating:78Outperform
Price Target:
$1,563.00
▲(13.05% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong underlying financial performance (durable margins and solid cash generation) and a notably upbeat earnings call with raised full-year guidance. Technicals are supportive but not strongly bullish, while valuation is the main drag due to a high P/E and modest dividend yield.
Positive Factors
Diversified go-to-market channels
Grainger's mix of High‑Touch account management and fast, e‑commerce Endless Assortment (Zoro, MonotaRO) creates durable revenue diversification. Multiple routes‑to‑market reduce single-channel risk, enable cross‑sell, and support stable recurring demand from large accounts and high-frequency transactional buyers.
Negative Factors
Slowing revenue growth pace
After multi‑year mid‑single digit growth, the deceleration to low single digits suggests lessening top‑line momentum. Slower revenue expansion can reduce operating leverage, prolong payback on distribution investments, and heighten reliance on pricing and share gains to sustain EPS growth over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified go-to-market channels
Grainger's mix of High‑Touch account management and fast, e‑commerce Endless Assortment (Zoro, MonotaRO) creates durable revenue diversification. Multiple routes‑to‑market reduce single-channel risk, enable cross‑sell, and support stable recurring demand from large accounts and high-frequency transactional buyers.
Read all positive factors
WW Grainger Key Performance Indicators (KPIs)
Any
Operating Earnings by Segment
Highlights the profitability of different business segments, providing insight into which areas are driving earnings and where there might be challenges or opportunities for growth.
Highlights the profitability of different business segments, providing insight into which areas are driving earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyWW Grainger (GWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.30B
Dividend Yield0.72%
Average Volume (3M)321.62K
Price to Earnings (P/E)33.7
Beta (1Y)0.69
Revenue Growth7.80%
EPS Growth-0.65%
CountryUS
Employees23,550
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)39.24
Shares Outstanding47,100,940
10 Day Avg. Volume262,547
30 Day Avg. Volume321,615
Financial Highlights & Ratios
PEG Ratio-3.11
Price to Book (P/B)12.94
Price to Sales (P/S)2.69
P/FCF Ratio36.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,312.09Price Target Upside-5.10% Downside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)46.4
Revenue Forecast (FY)$19.63B
WW Grainger Business Overview & Revenue Model
Company Description
W.W. Grainger, Inc. stands as a significant global supplier of maintenance, repair, and operating (MRO) supplies and related services. Its market presence spans several international regions, including the United States, Japan, Canada, and the Uni...
How the Company Makes Money
Grainger primarily makes money by selling MRO products sourced from manufacturers and other suppliers and reselling them to end customers at a markup, generating revenue from product sales (its main revenue stream). Sales are fulfilled through mul...
WW Grainger Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a predominantly positive performance: strong top-line growth across both High-Touch and Endless Assortment, meaningful margin and EPS expansion, robust cash flow and an increased full-year guide. Headwinds remain—mix effects from project sales, private-label cost pressure, freight/fuel inflation, the lap of tariff refunds impacting Q3 margins, and MonotaRO prebuy moderation—but management outlined concrete mitigation steps (pricing actions in September, brand consolidation, distribution capacity expansion) and maintained confidence in strategy and execution. Overall, positives (growth, margins, cash, raised guidance, new DC) substantially outweigh the contained but notable near-term challenges.Positive Updates
Strong Top-Line Growth
Total company reported sales increased 10.3% year-over-year, or 13.7% on a daily organic constant currency basis, driven by strength in both High-Touch and Endless Assortment segments.
Negative Updates
Gross Margin Headwinds from Mix and Costs
While gross margin expanded year-over-year, excluding the tariff refund tailwind the business faced mix pressure (higher volume of lower-margin products and project-related sales), private label cost headwinds, and unfavorable freight and fuel costs that compressed margins versus what refunds alone might imply.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total company reported sales increased 10.3% year-over-year, or 13.7% on a daily organic constant currency basis, driven by strength in both High-Touch and Endless Assortment segments.
Read all positive updates
Company Guidance
Management raised full‑year guidance to daily organic constant‑currency sales growth of 11.5%–13.0%, an operating‑margin range of 15.8%–16.2% (noting a ~90‑bp tariff‑refund benefit in Q2 but only ~23 bps on the full year), and diluted EPS of $45.50–$47.25 (up >17% YoY at the midpoint and ~ $1 higher at the midpoint versus prior guidance), with a slight increase to midpoint operating cash flow in the supplemental guide; for Q3 they expect sales north of $5.0 billion (up >12% daily organic constant currency) with preliminary July sales up north of 13% and Q3 operating margin in the mid‑15% range as the Q2 refund laps, and they plan September pricing actions that will add about 1 percentage point annualized (roughly 40 bps for the balance of the year) toward roughly 4% full‑year pricing.WW Grainger Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.84B | 17.94B | 17.17B | 16.48B | 15.23B | 13.02B |
| Gross Profit | 7.42B | 7.01B | 6.69B | 6.50B | 5.85B | 4.72B |
| EBITDA | 2.96B | 2.77B | 2.90B | 2.81B | 2.40B | 1.74B |
| Net Income | 1.87B | 1.71B | 1.91B | 1.83B | 1.55B | 1.04B |
Balance Sheet | ||||||
| Total Assets | 9.62B | 8.96B | 8.83B | 8.15B | 7.59B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 589.00M | 585.00M | 1.04B | 660.00M | 325.00M | 241.00M |
| Total Debt | 2.80B | 3.16B | 3.18B | 2.75B | 2.71B | 2.76B |
| Total Liabilities | 5.11B | 4.82B | 5.13B | 4.71B | 4.85B | 4.43B |
| Stockholders Equity | 4.13B | 3.74B | 3.36B | 3.12B | 2.44B | 1.87B |
Cash Flow | ||||||
| Free Cash Flow | 1.51B | 1.33B | 1.57B | 1.59B | 1.08B | 682.00M |
| Operating Cash Flow | 2.17B | 2.02B | 2.11B | 2.03B | 1.33B | 937.00M |
| Investing Cash Flow | -656.00M | -645.00M | -520.00M | -422.00M | -263.00M | -226.00M |
| Financing Cash Flow | -1.50B | -1.82B | -1.18B | -1.28B | -972.00M | -1.04B |
WW Grainger Technical Analysis
Positive
1382.60
Price Trends
1340.71
Negative
1257.31
Positive
1146.15
Positive
Market Momentum
-11.52
Positive
47.90
Neutral
57.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GWW, the sentiment is Positive. The current price of 1382.6 is above the 20-day moving average (MA) of 1337.85, above the 50-day MA of 1340.71, and above the 200-day MA of 1146.15, indicating a neutral trend. The MACD of -11.52 indicates Positive momentum. The RSI at 47.90 is Neutral, neither overbought nor oversold. The STOCH value of 57.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GWW.
WW Grainger Risk Analysis
WW Grainger disclosed 24 risk factors in its most recent earnings report. WW Grainger reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WW Grainger Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $62.30B | 33.71 | 48.70% | 0.67% | 7.80% | -0.65% | |
75 Outperform | $58.55B | 43.24 | 34.03% | 1.96% | 12.54% | 13.58% | |
72 Outperform | $6.91B | 29.91 | 16.55% | 2.77% | 4.41% | 16.62% | |
68 Neutral | $12.93B | 27.03 | 16.76% | 3.48% | -2.98% | -12.07% | |
67 Neutral | ― | ― | ― | ― | ― | ― | |
66 Neutral | $17.62B | 24.68 | 14.06% | 0.57% | 12.51% | 13.23% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GWW
WW Grainger
1,322.64
352.53
36.34%
FAST
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51.02
2.96
6.15%
MSM
MSC Industrial
123.82
39.96
47.65%
WSO
Watsco
313.06
-92.66
-22.84%
WCC
Wesco International
361.55
153.17
73.51%
FERG
Ferguson Enterprises
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WW Grainger Corporate Events
Executive/Board Changes
WW Grainger Names Laurie Thomson Interim Chief Financial Officer
Neutral
Aug 3, 2026
On July 31, 2026, W.W. Grainger announced that Senior Vice President and Chief Financial Officer Deidra C. Merriwether had decided to resign effective September 4, 2026, to pursue another opportunity, with the company emphasizing that her departur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.