The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Global Industrial (NYSE:GIC) and the rest of the maintenance and repair distributors stocks fared in Q2.
Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.
The 9 maintenance and repair distributors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2%.
Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results.
Global Industrial (NYSE:GIC)
Formerly known as Systemax, Global Industrial (NYSE:GIC) distributes industrial and commercial products to businesses and institutions.
Global Industrial reported revenues of $358.9 million, up 3.2% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
Interestingly, the stock is up 30.3% since reporting and currently trades at $35.35.
Is now the time to buy Global Industrial? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Transcat (NASDAQ:TRNS)
Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.
Transcat reported revenues of $76.42 million, up 14.6% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.
Transcat pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.9% since reporting. It currently trades at $72.22.
Is now the time to buy Transcat? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: W.W. Grainger (NYSE:GWW)
Founded as a supplier of motors, W.W. Grainger (NYSE:GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
W.W. Grainger reported revenues of $4.55 billion, up 5.6% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted full-year EPS guidance slightly missing analysts’ expectations and a miss of analysts’ EPS estimates.
As expected, the stock is down 7.8% since the results and currently trades at $958.90.
Read our full analysis of W.W. Grainger’s results here.
Distribution Solutions (NASDAQ:DSGR)
Founded in 1952, Distribution Solutions (NASDAQ:DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.
Distribution Solutions reported revenues of $502.4 million, up 14.3% year on year. This result beat analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA and EPS estimates.
The stock is flat since reporting and currently trades at $28.74.
Read our full, actionable report on Distribution Solutions here, it’s free for active Edge members.
Fastenal (NASDAQ:FAST)
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Fastenal reported revenues of $2.08 billion, up 8.6% year on year. This number topped analysts’ expectations by 0.5%. It was a very strong quarter as it also logged a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 10.1% since reporting and currently trades at $47.65.
Read our full, actionable report on Fastenal here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.