PQUS0.290%
as of Jul 21
GWW
DefensiveW.W. GRAINGER INC
W.W. Grainger, Inc., together with its subsidiaries, distributes maintenance, repair, and operating products and services primarily in North America, Japan, and the United Kingdom. The company operates through two segments, High-Touch Solutions North America and Endless Assortment.
Close · 3M
+22.95%
Held by 2 AI ETFs
QRFT0.150%
as of Jul 8
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals3
Win rate100% (3/3)
Avg buy return+20.52%
PQUS · New entry · 1d
weight 0 → 0.180% (new)·stock up 7.1% in the 30 days before
May 22·entry $1247.79·now $1371.22Drifting
+9.89%
since May 22
QRFT · New entry · 1d
weight 0 → 0.120% (new)·stock down 7.6% in the 30 days before
Mar 20·entry $1041.95·now $1371.22Chased
+31.60%
since Mar 20
AIEQ · Exit · 1d
W.W. Grainger Inc. was removed from AIEQ on July 1, 2026, after a period of significant price gains, bringing its current price of $1338.24 to 97% of its 52-week high, with a +7.5% return in the prior 30 days. This action aligns with the fund’s daily rebalancing process, where IBM Watson’s NLP system, which analyzes news, filings, and social posts, likely weighed GWW's high PER of 35.62 and PBR of 12.84. Even with a high ROE of 47.84% and revenue growth of 6.61%, the AI’s risk overlay system may have flagged the stock's valuation as less attractive for continued inclusion given its extended rally and proximity to its yearly peak. The combined input from both fundamental metrics and potential shifts in market sentiment detected by the NLP component could have prompted the system to reallocate from the Industrials sector stock on July 1.
weight 0.160% → 0 (exited)·stock up 7.7% in the 30 days before
Jul 1·entry $1338.24·now $1371.22
+2.46%
since Jul 1
AIEQ · New entry · 1d
The AI ETF likely re-entered GWW based on its exceptional 47.22% Return on Equity, indicating strong underlying profitability and efficient capital use despite its premium P/E and P/B ratios. For retail investors, this suggests prioritizing companies with superior financial quality and high ROE can be a valuable strategy, even when traditional valuation metrics seem elevated.
weight 0 → 0.140% (new)·stock up 3.7% in the 30 days before
May 3·entry $1142.14·now $1371.22Chased
+20.06%
since May 3
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 4
AIEQ recently initiated a new position in W.W. Grainger, signaling a positive sentiment from that AI ETF. This action contrasts with the framework's 'Fail' verdict, which is primarily driven by concerns regarding the lack of comprehensive financial data to confirm financial health and the company's high valuation multiples. The AI's entry suggests it may be prioritizing other factors, such as growth or momentum, over the strict margin of safety sought by this value investing approach.
- Circle of CompetenceThe company operates in the stable industrial distribution sector, allowing for reasonably predictable ten-year cash flow projections based on consistent demand for MRO products.
- Economic MoatW.W. Grainger possesses a durable economic moat driven by its significant scale, extensive distribution network, and high customer switching costs for MRO supplies.
- ManagementAssessment of management's candor, capital allocation discipline, and skin in the game cannot be made solely from the provided financial data.
- Financial HealthInsufficient data regarding 10-year average ROE, operating margins, debt levels, and owner earnings prevents a comprehensive assessment of financial health against the stated criteria.
- Margin of SafetyCurrent valuation multiples (PER 31.87, PBR 12.84, EV/EBITDA 42.27) suggest the stock is trading at a premium, indicating no clear margin of safety against a conservative estimate of intrinsic value.
W.W. Grainger passes the circle of competence and economic moat stages due to its predictable industrial distribution business and strong competitive advantages. However, the limited financial data prevents a full assessment of management and critical elements of financial health, leading to a 'Fail' for financials. More significantly, the current high valuation multiples indicate an absence of a margin of safety, resulting in an overall 'Fail' verdict.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.