Why MSC Industrial Is Poised to Bounce Back

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

$5.0 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

$244.0 million/$3.3 million

Dividend Yield

1.5%

Competitors

Applied Industrial Technologies

W.W. Grainger 

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.

Just last week, one of those Fools, TMFTheRealDeal, succinctly summed up the MSC bull case for our community: "Boring, industrial distributor that operates in a business with great economics. ROIC over 18% for past 15 years. Highly fragmented industry with an opportunity to gain market share."

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

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