Why MSC Industrial Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, metalworking products distributor MSC Industrial Direct (NYSE: MSM  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at MSC and see what CAPS investors are saying about the stock right now.

MSC facts

Headquarters (Founded)

Melville, N.Y. (1941)

Market Cap

$4.7 billion

Industry

Trading companies and distributors

Trailing-12-Month Revenue

$2.4 billion

Management

CEO/COO Erik Gershwind
CFO Jeffrey Kaczka

Return on Equity (Average, Past 3 Years)

21.9%

Cash/Debt

$233.5 million / $3.3 million

Dividend Yield

1.6%

Competitors

Align Aerospace
Applied Industrial Technologies
(NYSE: AIT  )
W.W. Grainger
(NYSE: GWW  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 502 members who have rated MSC believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, fellow Fool Andy Cross (TMFOpie), succinctly summed up the MSC bull case for our community:

A leader in helping industrial and manufacturing companies ring the cash register by managing inventories. MSC's BlueBook is legendary in the metal tooling and industrial supply biz. The company offers more than 600k SKUs and overnight shipping at same price. Only 40% of its business is via the Internet now and growing. The next CEO (only the 4th in the company's 80 year history) built the Internet platform and has been at MSC since the late 90s. The company handled the transition very well, making the announcement two years ago. The stock isn't expensive and while there are ISM risks and manufacturing slowdowns, MSC has navigated these before and will again. Thumbs up.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, MSC may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2198079, ~/Articles/ArticleHandler.aspx, 10/25/2014 11:46:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement