12 Best Industrial Distribution Stocks to Buy According to Hedge Funds

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10. MSC Industrial Supply Co. (NYSE:MSM)

Number of Hedge Fund Holders: 26

MSC Industrial Supply Co. (NYSE:MSM) is a leading North American distributor of metalworking and maintenance, repair and operations (MRO) products and services. Through more than 2 million product offerings, deep expertise from over 80 years of working across industries, and its inventory management and other supply chain solutions, the company enables customers to drive greater productivity.

MSM is a leader in the North American industrial distribution market which is large and highly fragmented across the addressable market as well as the customer landscape, while the firm has ample opportunities for organic and acquisitive growth. The company boasts industry-leading customer satisfaction ratings, based on a customer-centric culture and delivering solutions driving customer success.

Although MSC Industrial Supply Co. (NYSE:MSM) was subject to a challenging operating environment during fiscal 2025 Q1, the company ended up delivering results exceeding its expectations. While the adjusted operating margin for the quarter exceeded the high end of the firm’s outlook by approximately 50 basis points, the company generated significant free cash flow of $82 million.

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