Illinois-based W.W. Grainger, Inc. (GWW) is a major industrial distributor operating across North America, Japan, and the UK, supporting over 4.5 million customers with a wide range of products. In 2024, the company generated $17.2 billion in revenue through its dual business model, powered by technology and strong customer ties.

With a market cap of approximately $51.5 billion, GWW stock has gained 12.3% over the past year, slightly outperforming the broader S&P 500 Index’s ($SPX) 10.2% gain during the same stretch. On a YTD basis, the stock is up 1.7%, while the broader index has dropped 1.3%. 

However, narrowing the focus, GWW stock is underperforming the S&P 500 Industrial Sector SPDR’s (XLI) 13.7% return over the past year and 6.9% gain on a YTD basis. 

On May 1, W.W. Grainger shares rose more than 2% following the release of its fiscal Q1 2025 results, which delivered a mixed performance. Revenue grew 1.7% year over year to $4.3 billion, slightly missing Wall Street expectations. However, the company delivered a solid earnings beat, with EPS climbing 2.5% to $9.86, comfortably ahead of the $9.46 analysts had projected. The stronger-than-expected bottom line helped boost investor confidence despite the modest top-line miss.

For the current fiscal year, ending in December, analysts expect GWW’s EPS to grow 3.4% to $40.30. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters, while missing on two other occasions. 

Among the 16 analysts covering GWW stock, the consensus view is a “Hold.” That’s based on three “Strong Buy,” eleven “Hold,” one “Moderate Sell,” and one “Strong Sell” rating. This configuration is slightly less bullish than two months ago, when the stock had no “Strong Sell” rating. 

On May 13, Wolfe Research raised its price target on W.W. Grainger from $975 to $1,023 but kept its “Underperform” rating in place.

GWW's mean price target of $1107.27 represents a premium of 3.3% from the current market prices. Meanwhile, the Street-high target of $1280 suggests potential upside of 19.4% from current price levels.