By: Jake Levinson
Grainger has quickly gone from the most out-of-favor name in our coverage to this year’s best performer, and by a wide margin. Despite ongoing concerns around structural headwinds facing distributors, notably digital price transparency (i.e. Google) and Amazon, Grainger has now handily beat estimates 4 quarters running. Some of this comes down to a very favorable macro environment…key macro indicators such as ISM are at 15-year highs, which has historically correlated very closely with distributor sales growth rates.