10 Benjamin Graham Stocks for Defensive Investors

2. W.W. Grainger, Inc. (NYSE:GWW)

Number of Hedge Fund Holders: 49

W.W. Grainger, Inc. (NYSE:GWW) is a leading distributor of MRO products and services, operating mainly in North America, Japan, and the UK. Its strategic framework, “The Grainger Edge,” guides the company’s purpose—We Keep the World Working®—and outlines expected behaviors. Grainger operates through two segments: High-Touch Solutions N.A., offering expert, value-added service for complex needs; and Endless Assortment, an online platform through Zoro and MonotaRO. It also includes other smaller businesses like Cromwell in the UK and a captive insurance unit.

In Q1 2025, W.W. Grainger, Inc. (NYSE:GWW)  reported a sales increase of 4.4% year-over-year to $4.31 billion, while operating margins remained strong at 15.6%, and EPS reached $9.86. High-Touch Solutions saw modest growth despite early softness due to weather and government delays, while Endless Assortment grew over 15%, led by strong results at Zoro and MonotaRO. April daily sales rose approximately 5.5%, showing improved momentum. Government demand, particularly in sectors affected by DOGE, was somewhat soft, though the company is primarily exposed to military and state-level agencies, limiting broader impact. The company’s manufacturing segments, notably aerospace, continue to see strong performance. The company confirmed that private label goods are more heavily exposed to China, although total reliance on Chinese manufacturing has decreased slightly over the years due to shifts to countries like Vietnam and Mexico.