This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Analysts May Have Underestimated This Stock

NEW YORK ( TheStreet) -- As a person who doesn't mind surprises, it surprised me to learn that on Thursday a company I've never heard of is going to step into the earnings confessional and may surprise to the upside.

MSC Industrial Direct (MSM - Get Report), together with its subsidiaries, operates as a direct marketer and distributor of various metalworking and maintenance, repair, and operations, or MRO, products primarily in the United States.

It offers nearly 600,000 stock-keeping units representing a range of MRO products, such as cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components, and electrical supplies.

The company sells its products through its master catalogs, specialty and promotional catalogs, brochures and the Internet to small, medium, and large companies in various sectors including durable and non-durable goods manufacturing, education, government, and health care.

It's downright exciting to realize MSM is based right in the heart of what I call "the rebuilding gold mine of America," the region of the U.S. most impacted by Hurricane-Super Storm Sandy. MSC Industrial Direct was founded in 1941 and is headquartered in Melville, N.Y., with an additional office in Southfield, Mich.

Analysts have been underestimating companies like Alcoa (AA), so why shouldn't it be possible they've done the same to a company like MSM?

The stock has had a nice run-up after a nasty mid-year 2012 correction, as the chart below illustrates. The share price recovery has been especially encouraging to director David Sandler, who as of Dec. 27 owns 218,824 shares worth over $16,618,000. MSM's quarterly revenue-per-share growth is heading in the right direction as well. MSM Chart MSM data by YCharts

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MSM $71.74 -0.19%
AAPL $130.28 0.47%
FB $81.53 -1.07%
GOOG $565.06 3.30%
TSLA $218.42 -0.08%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs