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

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 higher today making it today's featured wholesale winner. The industry as a whole closed the day up 0.8%. By the end of trading, W.W. Grainger rose $4.96 (2.0%) to $256.55 on average volume. Throughout the day, 490,083 shares of W.W. Grainger exchanged hands as compared to its average daily volume of 377,800 shares. The stock ranged in a price between $251.72-$256.62 after having opened the day at $252.47 as compared to the previous trading day's close of $251.59. Other companies within the Wholesale industry that increased today were: China Auto Logistics ( CALI), up 13.8%, Armco Metals Holdings ( CNAM), up 8.9%, Olympic Steel ( ZEUS), up 7.3% and Susser Petroleum Partners ( SUSP), up 6.5%.
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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 $17.6 billion and is part of the services sector. The company has a P/E ratio of 25.5, above the S&P 500 P/E ratio of 17.7. Shares are up 24.3% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate W.W. Grainger a buy, no analysts rate it a sell, and 9 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Rada Electronics Industries ( RADA), down 10.9%, Wesco Aircraft Holdings ( WAIR), down 2.7%, Peerless Systems Corporation ( PRLS), down 2.6% and Empire Resources Incorporated ( ERS), down 1.8%.

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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