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W.W. Grainger distributes facility maintenance products.
The numbers: Third-quarter net income increased 3% to $145 million and earnings per share climbed 5% to $1.88. Revenue fell 14% to $1.6 billion. Its gross margin was unchanged at 42% and its operating margin declined from 13% to 12%. The company has a strong financial position, with $672 million of cash, compared to $535 million of debt.
The stock: Grainger is up 23% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 17, a discount to the market and distributor peers. Shares pay a 1.9% dividend yield.