W.W. Grainger, Inc. (GWW) is scheduled to report first-quarter 2025 results on May 1, before the opening bell.The Zacks Consensus Estimate for GWW’s sales is pegged at $4.33 billion, indicating 2.4% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $9.46 per share. The consensus estimate for GWW’s earnings has moved down 0.2% in the past 60 days. The estimate indicates a year-over-year dip of 1.7%.  Image Source: Zacks Investment Research GWW’s Earnings Surprise Histo ...

W.W. Grainger, Inc. (NYSE: GWW ) has good long-term revenue growth prospects, supported by company- specific initiatives across both its High-Touch Solutions (HTS) and Endless Assortment (EA) segments. In its High-Touch Solutions segment, the company is targeting to outperform the U.S. MRO market growth by 400 bps 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 v ...

Group 1 - W.W. Grainger, Inc. (NYSE: GWW) is being monitored as a potential investment for dividend growth, indicating interest in conservative, income-generating strategies [1] - The target investor profile is characterized as a Generation X individual, who is over-educated and under-funded, seeking ways to increase income in a challenging economic environment [1] Group 2 - The article does not provide any specific financial data or performance metrics related to W.W. Grainger, Inc. or the broader industry [2][3]

Core Insights - Grainger has been recognized as one of the 2025 World's Most Ethical Companies® by Ethisphere, marking its first time receiving this honor and placing it among only four companies in its industry [1][2] - The recognition highlights Grainger's commitment to business integrity, ethics, and compliance, which are seen as essential for long-term success [2] - The 2025 honorees collectively outperformed a comparable index of global companies by 7.8 percentage points from January 2020 to January 2025, indicating a positive correlation between ethical practices and financial performance [3] Company Overview - Grainger is a leading broad line distributor of maintenance, repair, and operating (MRO) products, serving over 4.5 million customers globally [6] - In 2024, Grainger reported revenue of $17.2 billion, with operations primarily in North America, Japan, and the United Kingdom [6] - The company offers approximately 2 million MRO products and services in its High-Touch Solutions segment and provides access to over 14 million products through Zoro.com and over 24 million products through MonotaRO.com [6] Recognition Process - The assessment for the World's Most Ethical Companies® is based on Ethisphere's proprietary Ethics Quotient®, which requires companies to provide over 240 proof points on various ethical practices [4] - A panel of experts conducts qualitative analysis on the submitted data, ensuring a rigorous evaluation process for the honorees [4]

Core Viewpoint - Ashtead Group PLC (ASHTY) is currently viewed as a better value opportunity compared to W.W. Grainger (GWW) based on various valuation metrics and earnings outlook [1]. Valuation Metrics - ASHTY has a Zacks Rank of 1 (Strong Buy), indicating a strong earnings estimate revision trend, while GWW has a Zacks Rank of 4 (Sell) [3]. - ASHTY's forward P/E ratio is 15.42, significantly lower than GWW's forward P/E of 25, suggesting ASHTY is undervalued relative to GWW [5]. - The PEG ratio for ASHTY is 1.44, while GWW's PEG ratio is 2.65, indicating ASHTY has a more favorable valuation when considering expected earnings growth [5]. - ASHTY's P/B ratio is 3.49, compared to GWW's P/B of 13.43, further supporting ASHTY's superior valuation [6]. Overall Value Grade - ASHTY has a Value grade of B, while GWW has a Value grade of C, reflecting ASHTY's stronger earnings outlook and more attractive valuation metrics [6].

Group 1 - The stock of W.W. Grainger, Inc. (GWW) is experiencing significant attention due to high implied volatility in the options market, particularly the Apr 17, 2025 $720.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Grainger's stock price, potentially due to an upcoming event [2] - Grainger currently holds a Zacks Rank of 4 (Sell) in the Industrial Services industry, which is in the bottom 37% of the Zacks Industry Rank, with a decrease in earnings estimates from $10.37 to $9.62 per share over the last 60 days [3] Group 2 - The high implied volatility surrounding Grainger's stock may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Sales and Customer Base - Grainger generated approximately 82% of its consolidated net sales from U.S. operations in 2024[40]. - The company serves over 4.5 million customers globally, with no single customer accounting for more than 10% of total sales in 2024[27]. - Approximately 20% of 2024 sales were from private label MRO items bearing Grainger's registered trademarks[37]. - Grainger's High-Touch Solutions N.A. segment primarily serves mid-size and large businesses with complex purchasing needs[28]. - High-Touch Solutions N.A. segment reported net sales of $13,720 million, an increase of $453 million or 3.4% from 2023[160]. - Endless Assortment segment net sales reached $3,134 million, up $218 million or 7.5%, with a 12% increase on a daily constant currency basis[164]. Financial Performance - Net sales for the year ended December 31, 2024, were $17,168 million, an increase of $690 million or 4.2% compared to 2023[153]. - Gross profit for the same period was $6,758 million, up $262 million or 4%, with a gross profit margin of 39.4% remaining flat[154]. - Operating earnings for 2024 were $2,637 million, reflecting an increase of $72 million or 3% from 2023[156]. - Net earnings attributable to W.W. Grainger, Inc. were $1,909 million, up $80 million or 4.4% year-over-year[153]. - Diluted earnings per share increased to $38.71, a rise of 7% compared to $36.23 in 2023[158]. - For the twelve months ended December 31, 2024, net earnings attributable to W.W. Grainger, Inc. were $1,921 million, reflecting a 3.8% increase compared to the previous year[1]. - Diluted earnings per share for the same period increased by 6.2% to $38.96[1]. Operational and Strategic Initiatives - Grainger's KeepStock® program offers comprehensive inventory management solutions, including vendor-managed and customer-managed inventory[35]. - The company is exploring new operating initiatives, including AI applications, to manage costs and improve sales performance[76]. - Grainger's strategic aspiration for 2025 includes expanding its leadership position in the MRO market through enhanced customer service and operational processes[147]. - Grainger's ongoing research and development in AI technologies is essential for maintaining competitive advantage and operational success[101]. Supply Chain and Risk Management - Disruptions in Grainger's supply chain could adversely impact results of operations, including delays and increased costs from natural disasters or geopolitical events[59]. - Grainger sources products from over 5,000 suppliers, with no single supplier accounting for more than 5% of total purchases, which mitigates supply risk[65]. - Fluctuations in commodity prices, such as steel and copper, may adversely affect Grainger's gross margins due to increased costs[69]. - The company continues to monitor commodity price risks and has implemented alternative sourcing plans to mitigate exposure[201]. Compliance and Cybersecurity - Grainger's operations involve the collection and storage of personally identifiable and sensitive information, which poses cybersecurity risks[103]. - Grainger's compliance with a complex array of global laws and regulations is critical to avoid potential fines and reputational damage[112]. - Cybersecurity incidents could materially affect Grainger's business strategy and financial results, including potential litigation and remediation costs[106]. - Grainger's cybersecurity team is led by a CISO with over 20 years of experience, focusing on risk management and mitigation strategies[127]. Market Conditions and Competition - Economic downturns and market trends affecting customers' profitability could lead to reduced demand for Grainger's products, impacting sales growth[62]. - Grainger faces competition from various large and small competitors, necessitating continuous adaptation to market pressures[74]. - Changes in U.S. trade policy and retaliatory actions could worsen economic conditions, impacting demand for Grainger's products[70]. Capital and Debt Management - Grainger's consolidated indebtedness as of December 31, 2024, was approximately $2.8 billion[120]. - Grainger's ability to raise capital may be impacted by changes in credit ratings, which could increase borrowing costs[119]. - Grainger's debt agreements contain covenants that, if not complied with, could result in defaults and accelerate indebtedness[121]. - Total debt as a percentage of total capitalization increased to 42.9% as of December 31, 2024, from 40.1% in 2023[9]. Workforce and Culture - The company has more than 26,000 team members worldwide, with approximately 85% located in North America[43]. - The company emphasizes a purpose-driven culture, with approximately 42% of team members being women and 39% of U.S. team members being racially and ethnically diverse[49]. - Grainger must effectively attract and retain key team members to maintain operational success, facing challenges from competitive labor markets[89]. Stock Performance and Shareholder Returns - Grainger's common stock is traded on the New York Stock Exchange under the symbol GWW, with 496 shareholders of record as of February 14, 2025[137][139]. - During the three months ended December 31, 2024, Grainger repurchased a total of 401,325 shares of common stock[140]. - The average price paid per share for repurchases in December 2024 was $1,132.63[140]. - Grainger repurchased shares worth $1,201 million in 2024, an increase from $850 million in 2023, with plans for 2025 repurchases expected to be between $1,150 million and $1,250 million[7].

Core Points - Grainger's Board of Directors has nominated 12 candidates for the 2025-2026 period, all of whom are current Board members [1] - Stuart L. Levenick, a Board member since 2005, will not stand for re-election after 19 years of service [1] - D.G. Macpherson, Grainger's Chairman and CEO, expressed gratitude for Levenick's leadership and contributions to the company [2] Company Overview - Grainger is a leading broad line distributor with operations primarily in North America, Japan, and the United Kingdom [2] - The company serves over 4.5 million customers worldwide, generating $17.2 billion in revenue for 2024 [2] - Grainger operates through two business models: High-Touch Solutions, offering approximately 2 million MRO products, and Endless Assortment, providing access to over 14 million products through Zoro.com and more than 24 million products through MonotaRO.com [2]

Core Viewpoint - Ashtead Group PLC (ASHTY) is currently viewed as a better value opportunity compared to W.W. Grainger (GWW) based on various financial metrics and analyst outlooks [1]. Valuation Metrics - ASHTY has a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision trend compared to GWW, which has a Zacks Rank of 4 (Sell) [3]. - ASHTY's forward P/E ratio is 16.45, significantly lower than GWW's forward P/E of 25.06, suggesting ASHTY is undervalued relative to GWW [5]. - The PEG ratio for ASHTY is 1.54, while GWW's PEG ratio is 2.66, indicating ASHTY has a better balance between its price and expected earnings growth [5]. - ASHTY's P/B ratio stands at 3.72, compared to GWW's P/B of 13.52, further supporting the notion that ASHTY is undervalued [6]. - Based on these valuation metrics, ASHTY holds a Value grade of B, while GWW has a Value grade of C [6]. Earnings Outlook - ASHTY is recognized for its solid earnings outlook, which contributes to its position as the superior value option compared to GWW [7].

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's Q4 2024 performance showed steady growth, with revenue increasing by 5.9% year-on-year to $4,233 million, and net profit rising by 16.6% to $9.71 per share. Overall, the annual performance for 2024 met expectations [1][5] - The HTS business segment demonstrated solid growth, with Q4 revenue up 4.0% to $3,342 million, outperforming the MRO industry growth rate of 2.0-2.5%. The segment's operating profit increased by 7.6% to $567 million, supported by improved gross margins [1][5] - The EA business segment also performed well, with Q4 revenue rising 15.1% to $816 million and operating profit increasing by 27.3% to $70 million [1][5] - The company provided a conservative revenue guidance for 2025, expecting a growth of 2.7%-5.2% to $17.6-$18.1 billion, reflecting the challenging economic environment [1][5] - The company is projected to achieve revenue growth of 2.8%, 2.6%, and 7.1% for 2025, 2026, and 2027, respectively, with corresponding net profit growth of 0.3%, 5.6%, and 11.0% [1][5] Financial Summary - For 2024, the company forecasts revenue of $17.2 billion, with a year-on-year growth of 4.2%. The operating profit margin is expected to be 15.5%, and earnings per share (EPS) is projected at $38.96, reflecting a 6.2% increase [1][6] - The company's financial metrics indicate a P/E ratio of 26.61 for 2024, decreasing to 22.64 by 2027, suggesting a potential for value appreciation over time [1][6] - The total assets are projected to grow from $8.83 billion in 2024 to $10.54 billion by 2027, indicating a healthy balance sheet [1][6]