Movement Alert|W.W. Grainger Falls 5.67% in Regular Trading, Earnings Beat Fails to Overcome Valuation Concerns

Market Focus08-05

On August 5, W.W. Grainger fell 5.67% in regular trading, trading at $1,295.65/share, with turnover of approximately $253 million.

On the news front, the company reported Q2 EPS of $12.01, significantly beating the consensus estimate of $11.28, while revenue of $5.021 billion also exceeded the expected $4.953 billion. The company simultaneously raised its full-year adjusted EPS guidance to $45.50-$47.25, up from the prior range of $44.25-$46.25, above the analyst consensus of $45.67.

Despite the across-the-board beat, the stock declined sharply as multiple institutions maintained neutral or bearish ratings. Stephens previously downgraded the stock to equalweight, Barclays maintains an underweight rating with a target price of just $1,166, and the average analyst target stands around $1,289. Market participants viewed the current valuation as having already priced in growth prospects, triggering profit-taking after the stock had run ahead of fundamentals.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment