LECO - MSC Industrial Leveraged To Robust Industrial Activity And Self-Improvement

• MSC hasn't outpaced revenue expectations by all that much recently, but the overall industrial market remains healthy as companies try to ramp production to meet demand.
• Overly optimistic Street expectations for gross margins remain a risk, but there does seem to be some evidence of improvement with management's operating leverage efforts.
• Sentiment for short-cycle industrials is not great now, but I see a widening gap between MSC's underlying value and the share price.

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