- 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.
For further details see:
MSC Industrial Leveraged To Robust Industrial Activity And Self-Improvement