2024-04-05 12:46:13 ET
Summary
- W.W. Grainger is significantly overvalued despite strong fundamentals and growth.
- The company is a major player in the industrial distribution sector, offering a wide range of products globally.
- Analysts have raised their price targets for the stock, but it is still considered overvalued and risky by me. I'm raising my price target, but i still consider it expensive.
Dear readers/followers,
It's time for an update on W.W. Grainger ( GWW ) after around 2 years since my last piece. Industrial supply companies are attractive provided you can get them at the right valuation, and my last review saw the company at a "HOLD" valuation in an article that you can find here.
Unfortunately, and as you can see, I made the wrong call at this particular time. It's perhaps one of my biggest weaknesses as an analyst, that I underestimate the length or height that some companies can climb. I expect valuation "logic" to hold. Though I am of course aware of it, it's still tricky to estimate just how high a company can go. It's tricky to really expect here, including for W.W. Grainger, that a company could climb as this one really has....
Read the full article on Seeking Alpha
For further details see:
W.W Grainger: Seriously Overvalued Here