12 Best Industrial Distribution Stocks to Buy According to Hedge Funds

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6. W.W. Grainger, Inc. (NYSE:GWW)

Number of Hedge Fund Holders: 34

W.W. Grainger, Inc. (NYSE:GWW) is a broad line, distributor of maintenance, repair and operating (MRO) products and services with operations in North America, Japan, and the United Kingdom. The firm operates through two segments, High-Touch Solutions North America (High-Touch Solutions N.A.) segment which primarily includes the Grainger-branded businesses in the US, Canada, Mexico, and Puerto Rico, and the Endless Assortment segment which includes the firm’s Zoro Tools, Inc. (Zoro) and MonotaRO Co., Ltd. (MonotaRO) online channels operating predominately in the US and Japan.

Grainger is an industry leader in a large and highly attractive market with the opportunity to capture market share. A world-class supply chain and a massive scale deem the company a significant player in industrial distribution. Grainger offers approximately 2 million maintenance, repair and operating (MRO) products and services in the High-Touch Solutions segment while the Endless Assortment segment boasts Zoro.com offering customers access to over 14 million products, and MonotaRO.com offering over 24 million products.

W.W. Grainger, Inc. (NYSE:GWW) advanced its capabilities and deepened its customer relationships across both of its segments through a challenging 2024 where demand remained muted. Total company sales increased 4.2% year over year for the full year 2024. Additionally, Grainger generated a strong operating cash flow of over $2.1 billion and returned $1.6 billion to shareholders through dividends and share repurchases.

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