W.W. Grainger Reports Q4 Results Amid Market Underperformance
W.W. Grainger, Inc. (GWW) stands as a prominent industrial supply company, offering maintenance, repair, and operations (MRO) products and services to both businesses and institutions. With a market capitalization of $48.4 billion, the company utilizes a mix of e-commerce, catalogs, and physical branches to distribute essential items such as safety gear, tools, and electrical supplies.
Over the past year, GWW’s stock has struggled compared to the broader market. While GWW’s shares have increased by 4.6%, the S&P 500 Index ($SPX) has enjoyed nearly a 17.5% surge during the same period. In 2025, GWW’s stock has decreased by 4.4%, contrasting with the SPX’s modest 1.3% gain on a year-to-date basis.
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Within its industry sector, GWW is falling behind the Industrial Select Sector SPDR Fund (XLI), which has appreciated by 12.5% over the last year and 2.5% year-to-date.
On January 31, W.W. Grainger released its solid Q4 and full-year results for 2024. Q4 sales rose by 5.9% year-over-year to $4.2 billion, while adjusted earnings per share (EPS) surged by 16.6% to $9.71. For the full year, sales increased by 4.2% to $17.2 billion, and adjusted EPS climbed by 6.8% to $38.96.
The High-Touch Solutions segment experienced stable growth of 4%, whereas the Endless Assortment segment expanded impressively by 15.1% in Q4. Looking to 2025, Grainger anticipates sales between $17.6 billion and $18.1 billion, with projected EPS in the range of $39.00 to $41.50—indicative of confidence in future growth and profitability.
For the current fiscal year ending in December, analysts forecast GWW’s EPS will grow by 3.4% year-over-year to $40.30 on a diluted basis. The company’s earnings surprise history reveals mixed results, as it beat consensus estimates in two of the previous four quarters but fell short in two others.
Among the 16 analysts covering GWW, the consensus rating remains a “Hold,” reflecting two “Strong Buy” ratings, 13 “Holds,” and one “Moderate Sell.”
This consensus has remained stable over recent months. On February 3, RBC Capital’s Deane Dray reaffirmed a “Sector-Perform” rating on W.W. Grainger, slightly adjusting the price target from $1,113 down to $1,112.
The average price target for GWW stands at $1,122.70, representing an 11.4% premium over current market prices. Notably, the highest price target of $1,280 suggests a potential upside of 27%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
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