Zacks Research Predicts Higher Earnings for W.W. Grainger

Key Points

• Zacks Research raised its Q1 2028 earnings estimate for W.W. Grainger to $12.49 per share from $12.43, and also projected FY2028 EPS of $52.98.
• Grainger recently beat expectations in its latest quarter, posting $11.65 EPS versus the $10.21 consensus and revenue of $4.74 billion, up 10.1% year over year.
• The company increased its quarterly dividend to $2.49 per share from $2.26, bringing the annualized payout to $9.96 and the yield to about 0.8%.

W.W. Grainger, Inc. (NYSE:GWW - Free Report) - Stock analysts at Zacks Research increased their Q1 2028 earnings estimates for W.W. Grainger in a research note issued on Thursday, May 21st. Zacks Research analyst Team now forecasts that the industrial products company will earn $12.49 per share for the quarter, up from their previous estimate of $12.43. The consensus estimate for W.W. Grainger's current full-year earnings is $45.35 per share. Zacks Research also issued estimates for W.W. Grainger's FY2028 earnings at $52.98 EPS.

W.W. Grainger (NYSE:GWW - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The industrial products company reported $11.65 EPS for the quarter, beating the consensus estimate of $10.21 by $1.44. W.W. Grainger had a net margin of 9.70% and a return on equity of 47.87%. The business had revenue of $4.74 billion for the quarter, compared to the consensus estimate of $4.58 billion. During the same period in the prior year, the company posted $9.86 earnings per share. W.W. Grainger's revenue was up 10.1% compared to the same quarter last year. W.W. Grainger has set its FY 2026 guidance at 44.250-46.250 EPS.

Several other research firms also recently commented on GWW. Wall Street Zen upgraded shares of W.W. Grainger from a "hold" rating to a "buy" rating in a research note on Saturday. Royal Bank Of Canada lifted their price objective on W.W. Grainger from $1,170.00 to $1,337.00 and gave the company a "sector perform" rating in a report on Friday, May 8th. Stephens lifted their price objective on W.W. Grainger from $1,300.00 to $1,355.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Oppenheimer lifted their price objective on W.W. Grainger from $1,250.00 to $1,300.00 and gave the company an "outperform" rating in a report on Wednesday, February 4th. Finally, Sanford C. Bernstein lifted their price objective on W.W. Grainger from $1,052.00 to $1,125.00 and gave the company a "market perform" rating in a report on Tuesday, April 21st. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $1,199.13.

W.W. Grainger Trading Up 0.3%

GWW stock opened at $1,250.94 on Wednesday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 1.60 and a current ratio of 2.69. The company's 50-day simple moving average is $1,155.37 and its 200 day simple moving average is $1,084.30. W.W. Grainger has a 52 week low of $906.52 and a 52 week high of $1,286.56. The company has a market capitalization of $59.06 billion, a PE ratio of 33.65, a price-to-earnings-growth ratio of 2.31 and a beta of 1.04.

Hedge Funds Weigh In On W.W. Grainger

Hedge funds have recently modified their holdings of the business. Miller Capital Partners Inc. bought a new stake in W.W. Grainger in the fourth quarter valued at approximately $26,000. Ameriflex Group Inc. grew its holdings in W.W. Grainger by 211.1% during the 3rd quarter. Ameriflex Group Inc. now owns 28 shares of the industrial products company's stock worth $27,000 after acquiring an additional 19 shares during the period. MV Capital Management Inc. acquired a new stake in W.W. Grainger during the 4th quarter worth about $28,000. Harbor Investment Advisory LLC increased its stake in shares of W.W. Grainger by 314.3% in the 4th quarter. Harbor Investment Advisory LLC now owns 29 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 22 shares in the last quarter. Finally, Elyxium Wealth LLC bought a new stake in shares of W.W. Grainger in the 4th quarter valued at $30,000. Institutional investors and hedge funds own 80.70% of the company's stock.

Insider Activity at W.W. Grainger

In other W.W. Grainger news, VP Laurie R. Thomson sold 313 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $1,231.69, for a total value of $385,518.97. Following the completion of the transaction, the vice president directly owned 399 shares in the company, valued at approximately $491,444.31. This trade represents a 43.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Jonny M. Leroy sold 854 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $1,231.06, for a total value of $1,051,325.24. Following the completion of the transaction, the senior vice president owned 1,554 shares of the company's stock, valued at $1,913,067.24. This represents a 35.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 6,451 shares of company stock valued at $7,380,743 in the last quarter. 6.30% of the stock is owned by company insiders.

W.W. Grainger Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Monday, May 11th will be given a dividend of $2.49 per share. The ex-dividend date is Monday, May 11th. This represents a $9.96 dividend on an annualized basis and a yield of 0.8%. This is a positive change from W.W. Grainger's previous quarterly dividend of $2.26. W.W. Grainger's dividend payout ratio is currently 26.79%.

About W.W. Grainger

W.W. Grainger, Inc NYSE: GWW is an industrial supply distributor founded in 1927 and headquartered in Lake Forest, Illinois. The company supplies maintenance, repair and operations (MRO) products and services to businesses, institutions and government customers. Over its long history Grainger has developed a broad product assortment and a national distribution network that supports operations across a range of end markets, including manufacturing, healthcare, hospitality, transportation and public sector organizations.

Grainger's product portfolio spans core categories such as electrical and lighting, safety and personal protective equipment, material handling, motors and power transmission, plumbing and HVAC, fasteners and adhesives, hand and power tools, and janitorial and facility supplies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.