W.W. Grainger, Inc. (GWW), Applied Industrial Technologies (AIT), WESCO International, Inc. (WCC): This Industrial Equipment Services Company Looks Good

The utilities business continues to witness good growth while the construction business was mixed. The non-residential construction market in the U.S. remains challenged, but WESCO International, Inc. (NYSE:WCC) is seeing the Canadian and international markets improve. Having very limited exposure to the residential construction end markets, the company doesn’t foresee much of an impact from the same.

In May this year, WESCO International, Inc. (NYSE:WCC) was on Barron’s list of 500 strongest publicly traded companies where it moved from the 34th position last year to the second position in May 2013. Also, WESCO International, Inc. (NYSE:WCC) remains the cheapest of the three stocks based on the P/E ratio.

GWW P/E Ratio TTM data by YCharts

However, from a revenue growth perspective, Grainger is the clear leader if we look at the five year data.

GWW Revenue TTM data by YCharts

If we look at the growth in adjusted EPS over the last five years, Grainger again emerges as the clear leader out of the three.

GWW EPS Diluted TTM data by YCharts

Applied Industrial Technologies (NYSE:AIT) reported fourth-quarter results recently where revenue increased 3.3% to $640.5 million. Adjusted earnings came in at $0.76, which was a shade higher than the year-ago value of $0.75, and in line with analysts’ estimates.

Despite macroeconomic conditions that were a drag on sales, the company managed growth in EPS due to consistent focus on operating efficiency improvements. Going forward, Applied Industrial Technologies (NYSE:AIT) is looking to make its sales team more efficient and close more deals. The company is counting on its expertise and know-how of customers’ equipment to address requirements and help customers reduce transaction costs.

Conclusion

W.W. Grainger, Inc. (NYSE:GWW) might have come up with a mixed performance in the previous quarter, but it cannot be doubted that the company’s revenue and earnings grew in an impressive way. With focus on international expansion and margin expansion in the long run, Grainger looks like a good long-term holding and the best option among its peers.

The article This Industrial Equipment Services Company Looks Good originally appeared on Fool.com and is written by ANUP SINGH.

ANUP SINGH has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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