Yes, I'm on again about MSCIndustrial Direct
And that's just what this company continues to do. Sales were up nearly 13% in the second quarter, with price hikes accounting for about one-third of that growth. Margins continue to expand impressively; the company converted 38% of incremental sales into operating income, and the operating margin jumped by one-and-a-half full points. That, in turn, ultimately led to EPS growth of better than 25% -- and that's without adjusting for $0.03 worth of extra expense for an executive's departure and stock options.
Better yet, there's still ample room for growth and improvement. Two weeks ago, I wrote about MSC Industrial's purchase of Kennametal's
What's more, while this stock is absolutely sensitive to economic activity, it has survived the ups and downs of the past. It's also worth remembering that Home Depot
That said, I can't be blind to this stock's amazing run. While I'm personally willing to batten down the hatches and hold on to this one for a while, your mileage may vary. Much as I like this company, your own opinion is just as valid, and everybody needs to do their own due diligence.
For more Foolishness:
Home Depot is a Motley Fool Inside Value recommendation. A free trial gives you access to more of Philip Durell's recommended bargain stocks.
Fool contributor Stephen Simpson owns shares of MSC Industrial, but has no financial interest in any other stocks mentioned (that means he's neither long nor short the shares).