By: Jake Levinson
Grainger was a bottom-decile stock performer last year (+2% vs. XLI +22%); this year so far it’s top-decile (+26% vs. XLI +1%). As we often say, mean reversion is a powerful theme in industrials. And distributors in general have seen outsized volatility due to Amazon concerns, offset by cyclical tailwinds, tax tailwinds, and recent execution that has been quite good.
Note: Published April 19th, 2018