08-10-2014, 12:47 PM
(This post was last modified: 08-10-2014, 12:48 PM by earthtodan.)
This week I started a 1/2 position in W.W. Grainger. GWW is a 42 year dividend grower with a high DGR and low payout ratio. The P/E is not low, but the EPS growth is consistently high. One thing I like about it is the 5 year historical EPS growth of 13% is the same as the 5 year projected EPS growth rate of 13%, according to Finviz. No turnaround story here, just a dip in price and business as usual.
Grainger is a top-tier wholesale distributor of building and industrial supplies. Their major competitor is Fastenal (and increasingly Amazon). According to Morningstar, they perform an essential function by aggregating demand for more than 3,500 manufacturers, and providing a higher level of service to end markets than could be achieved by going factory direct. The space is highly fragmented and there is plenty of runway to grow faster than GDP.
If the price takes another dive and the P/E becomes truly attractive, I might take a full position.
Grainger is a top-tier wholesale distributor of building and industrial supplies. Their major competitor is Fastenal (and increasingly Amazon). According to Morningstar, they perform an essential function by aggregating demand for more than 3,500 manufacturers, and providing a higher level of service to end markets than could be achieved by going factory direct. The space is highly fragmented and there is plenty of runway to grow faster than GDP.
If the price takes another dive and the P/E becomes truly attractive, I might take a full position.