GWW trade ideas
GWW LONG 041824For those who get it done,
The recent downtrend may be a result of erosion in other hardware manufacturers or simply profit taking but I don't see Grainger going anywhere. This is a great gap of liquidity that was waiting to go long and I will be seeing a bounce in the next week.
From what I understand their ordering platform is great and unrivaled that of their competitors, technology superiority in ordering and inventory management will continue driving business forward and that may be a reason this stock is almost $1,000 per share.
Don't believe me ? I am sure you can ask any place that orders mechanical components and tools to find out these guys know what's up, have internal feedback on their negatives ? share it below.
Happy Trading,
Controversial Trade Idea: $GWW sells metal detectorsI'll do my best to leave the politics out of this.
Mass shootings are in the spotlight again, and it would be obvious in hindsight to see a boost in demand and sales for security systems such as metal detectors.
NYSE:GWW , who just teamed up with The Mom Project, had $13 billion in sales in 2021 and is a leading distributor with operations in North America, Japan, and the UK. They also provide services like repair, maintenance, and other solutions.
$GWW is consolidated, allowing for both directional entry upon a breakout north or south (breakout levels $530 and $450, respectively). I will trade in the direction of the break with a bullish personal bias.
See products (security, metal detectors, scanners): www.grainger.com
Potential 2Down 2Up Weekly Reversal For GWW Potential 2Down 2Up Weekly Reversal For GWW : Per the Strat, this week I'm watching ticker GWW (W.W. Grainger Inc) for a weekly entry trigger at 406.74 (last weeks high). If that trigger is met, I'll look for it to reach a magnitude of 417.79 (week before last weeks high). If it can reach magnitude, then it could also continue up to previous highs. Just look out for a reversal if it continues up after the original 406.79 magnitude.
GWW; awaiting right moment to enter long-term positionGWW was trading at an average P/E ratio of 20-21 between in the last three years. Extremely high EPS of $15.46 in 2019 were the reason for a relatively low P/E ratio (around 19). Now, it is dangerous to determine the forward-looking P/E using the EPS of the FY 2019. Rather, should be estimated by how much the lockdown will influence the EPS of the FY 2020. Additionally, GWW is likely to recover fast because of its industry. For this reason, I expect EPS to recover fully to its upwards trend in 2021. Especially Q2’s earnings will be reduced since the lockdown forces production and GWW’s clients to shut down its activity. I expect annual EPS of 2020 to be lower than $10. If this is reflected in the share price and the P/E ratio remains on average the same as it was over the last three years, the share price could easily fall to 20*$10=$200. In a pessimistic scenario, EPS 2020 could reach lower levels such as $7, which could justify a momentary share price of 20*$7=$140. I believe that both scenarios are equally likely and that GWW will soon recover after the Corona lockdown and the annual EPS will bounce back to pre-corona levels and growth. Expecting the EPS to rise to 13 by FY 2022, the stock price is likely to reach levels around 13*$20=$260 by the end of 2021.
Trading idea
Entry price $173.3
Take profit (or hold 😉) $260
Max expected holding period 18 months
Profit 50%
I`ll buy the stock as soon as it hits $173.3. Good luck!