top of page
Search

GWW Update: Still compelling

  • Writer: Abacus Research
    Abacus Research
  • Jun 19, 2018
  • 1 min read

Grainger is not being disrupted by Amazon, or the internet. Yes, 2017 was challenging, but the business has undergone a reset, and is now well positioned to outperform.

Today, GWW is a lowly valued, high quality company, with a solid tailwind and plenty internal change which will lead to very solid operating leverage. 

  • We expect sustainable volume growth after the repricing in 2017 will surprise to the upside

  • Years of challenging market conditions has ended

  • 2019: we think the street is plain wrong at $16.70 EPS. We estimate that numbers have very little downside and 2019 EPS could be $19.30 

  • Extremely bearish analysts (3/22 Buy ratings) will be forced to upgrade over the coming 12 months. 

Potential Upside: $390 (+25%): Based on 20x P/E on upside 2019 ests.

Sensible Downside: $280(-10%): Difficult to be more bearish than the street

 
 
 

Recent Posts

See All
SEDG, ENPH, NVTS: Plays on 800V

Everybody knows about the 800V conversion that is coming. NVDA etc have released the specs. There are many parts to that ecosystem change. Most of them are not ‘free options’ whereas SEDG and ENPH mos

 
 
 
Axon:

Axon is shifting from selling individual tools to providing an interconnected ecosystem. Hardware like TASERs and cameras now act as "data generators" that feed directly into high-margin software modu

 
 
 
C.H. Robinson

CHRW has been going through significant change, They are retaking market share. The new CEO has transformed the company by bringing in a lean / AI, that has helped CHRW to grow earnings despite strugg

 
 
 

Comments

bottom of page