W.W. Grainger Inc. (GWW): Today's Featured Wholesale Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

W.W. Grainger ( GWW) pushed the Wholesale industry lower today making it today's featured Wholesale laggard. The industry as a whole closed the day down 0.5%. By the end of trading, W.W. Grainger fell $4.85 (-2.4%) to $199.37 on heavy volume. Throughout the day, 764,151 shares of W.W. Grainger exchanged hands as compared to its average daily volume of 468,700 shares. The stock ranged in price between $198.94-$206.16 after having opened the day at $204.95 as compared to the previous trading day's close of $204.22. Other companies within the Wholesale industry that declined today were: China Metro-Rural Holdings ( CNR), down 11.5%, Shengkai Innovations ( VALV), down 7.4%, InfoSonics Corporation ( IFON), down 6.7%, and China Auto Logistics ( CALI), down 6.3%.
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W.W. Grainger, Inc. engages in the distribution of maintenance, repair, and operating supplies, as well as other related products and services for businesses and institutions primarily in the United States and Canada. W.W. Grainger has a market cap of $14.27 billion and is part of the services sector. The company has a P/E ratio of 23.1, above the average wholesale industry P/E ratio of 21.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate W.W. Grainger a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates W.W. Grainger as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, VOXX International ( VOXX), up 6.8%, Senomyx ( SNMX), up 3.3%, Edgen Group Inc Class A ( EDG), up 3.2%, and Rada Electronics Industries ( RADA), up 3.1%, were all gainers within the wholesale industry with Airgas ( ARG) being today's featured wholesale industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the wholesale industry could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the wholesale industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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