W.W. Grainger, Inc. Price & Performance (GWW)

W.W. Grainger has demonstrated exceptional capital allocation, achieving a 41% return on capital employed, significantly surpassing its industry average of 11%. Over the past five years, the company has grown its capital base by 51%, a promising sign of internal reinvestment and potential for sustained shareholder returns.1

Shares of W.W. Grainger have declined 15.1% in the past three months, underperforming the S&P 500, which fell 8.4% in the same period. Weaker-than-expected Q4 results and cautious 2025 guidance have led analysts to maintain a "Hold" rating, reflecting tempered expectations for near-term growth.2

W.W. Grainger's revenue is projected to grow 4.4% in 2025, below its historical average of 9.5%. Analysts have slightly lowered their earnings per share estimates, signaling potential headwinds. Despite this, the consensus price target remains steady, indicating no major changes in perceived intrinsic value.3