JPMorgan Lowers W.W. Grainger (GWW) PT to $1,035 Amidst Mixed Q2 Results, Gross Margin Pressure.

W.W. Grainger Inc. (NYSE:GWW) is one of the stocks to invest in before they split next. On September 4, JPMorgan lowered the firm’s price target on W.W. Grainger Inc. (NYSE:GWW) to $1,035 from $1,125, while maintaining a Neutral rating on the shares. JPMorgan updated the estimates for the US distributors to reflect the recent earnings results. In Q2 2025, the company’s total sales reached ~$4.6 billion, which marked a 5.6% increase year-over-year.

The diluted EPS for this quarter was $9.97, which was an increase of $0.21 or 2.2% from the previous year. Despite strong sales growth, W.W. Grainger Inc.’s operating margin declined by 0.5% to 14.9% due to gross margin pressures.

The company’s Endless Assortment segment, which includes Zoro US and MonotaRO, was a key growth driver, with sales increasing by 19.7%. Conversely, the High-Touch Solutions segment experienced more muted growth, with sales up only 2.5%. W.W. Grainger Inc. adjusted its 2025 EPS outlook downward, with the new range now between $38.50 and $40.25, representing a roughly 1% increase at the midpoint compared to the previous year.

W.W. Grainger Inc. (NYSE:GWW) distributes maintenance, repair, and operating products & services primarily in North America, Japan, and the UK. It has 2 segments: High-Touch Solutions North America and Endless Assortment.

While we acknowledge the potential of GWW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.