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GWW vs WSO
Which Stock Would AI Choose? W.W. Grainger (GWW) vs. Watsco (WSO) Stock Comparison
Key Takeaways
- Tickeron AI Verdict: GWW currently holds the stronger relative positioning, driven by more consistent trend momentum, accelerating earnings, and broader end-market demand versus a choppier setup for WSO.
- GWW has delivered double-digit sales growth and raised its full-year guidance in recent quarters, while WSO has faced margin compression and post-earnings share declines.
- The two companies operate in different niches of distribution: industrial maintenance, repair, and operations (MRO) for GWW versus heating, ventilation, air conditioning, and refrigeration (HVAC/R) for WSO.
- WSO offers a materially higher dividend yield, while GWW has shown stronger relative price momentum over the past year.
- For deeper context, explore GWW Major News and GWW Today's Price Move, as well as WSO Major News and WSO Today's Price Move.
- To see how automated strategies are positioning across the market, explore Trending AI Robots.
Introduction
Investors comparing GWW and WSO are effectively weighing two leading distribution franchises with very different demand drivers. W.W. Grainger, Inc. supplies maintenance, repair, and operating products to industrial and commercial customers, while Watsco, Inc. is the largest distributor of HVAC/R equipment and parts in North America. Both are quality compounders with long dividend histories, yet their recent relative performance has diverged meaningfully. This stock comparison is most relevant for investors seeking exposure to economically sensitive distribution businesses but who must decide between industrial momentum and a housing-linked, higher-yielding franchise. Understanding each company's market positioning, momentum, and catalysts helps clarify which stock appears better aligned with the current market environment.
GWW Overview and Recent Performance
W.W. Grainger, Inc. (GWW) is a leading business-to-business distributor of MRO (maintenance, repair, and operations) products and services, operating through its High-Touch Solutions North America segment and its Endless Assortment segment (which includes the Zoro and MonotaRO platforms). In recent weeks, the company has reported accelerating demand, with quarterly sales rising roughly 10% year over year and diluted earnings per share (EPS) growing by a double-digit percentage. Management has pointed to broad-based strength across manufacturing, government, and contractor customers, and has raised its full-year revenue and EPS guidance accordingly.
Relative performance has been strong, with the stock climbing substantially over the past year and recently trading near the upper end of its 52-week range. Analysts have responded with a series of price-target increases, though the consensus rating remains a "Hold," reflecting a premium valuation. Key factors shaping sentiment include improving MRO market demand, pricing discipline, and a 10% dividend increase marking more than five decades of consecutive payout growth. Offsetting considerations include tariff uncertainty, freight-cost pressures, and some product-mix headwinds in larger project-based sales.
WSO Overview and Recent Performance
Watsco, Inc. (WSO) is the largest distributor in the highly fragmented North American HVAC/R (heating, ventilation, air conditioning, and refrigeration) market, serving tens of thousands of contractors and technicians across the United States, Canada, and Latin America. The company has been investing heavily in its digital ecosystem, including platforms such as OnCallAir and SupplySync, and continues to expand through a "buy and build" acquisition strategy.
Recent market activity has been more challenging for Watsco. Quarterly revenue has grown modestly, but earnings per share have missed analyst expectations, and operating margins have contracted year over year as customer mix shifted toward larger, lower-margin accounts and as technology investments weighed on profitability. The stock has declined meaningfully over the past year, trading well below its 52-week high, and has underperformed following recent earnings releases. On the positive side, the company offers a dividend yield in the mid-single digits, has maintained a conservative balance sheet, and management cites stabilizing residential demand and growing e-commerce adoption as longer-term tailwinds.
Trending AI Robots
For traders seeking a systematic, data-driven approach to evaluating stocks like GWW and WSO, Tickeron's Trending AI Robots page offers a curated view of automated trading strategies. Tickeron hosts hundreds of AI trading bots that collectively trade thousands of different tickers, each with its own trading style, strategy, timeframe, performance track record, and set of covered securities. Because market conditions change constantly, only the bots best suited to the current environment earn a place in this curated section. Exploring these robots can help investors understand how quantitative models are interpreting momentum, trend consistency, and relative strength across the market.
Head-to-Head Comparison
Although both companies are distributors, their business models differ sharply. GWW serves a broad industrial base with a dual model combining high-touch service and a digital "endless assortment," giving it exposure to manufacturing and government spending cycles. WSO, by contrast, is concentrated in residential and commercial HVAC/R, tying its fortunes more closely to housing activity, replacement demand, and weather-driven equipment cycles.
Growth and momentum also diverge. Grainger has delivered accelerating sales and EPS growth, raised guidance, and seen its shares rise strongly over the past year. Watsco has posted more modest revenue growth alongside margin compression and downward estimate revisions, with the stock underperforming both the broader market and its distribution peers. On valuation and income, the trade-off is clear: WSO carries a higher dividend yield and trades at a lower earnings multiple, while GWW commands a premium multiple supported by stronger momentum and earnings visibility.
Risk profiles differ as well. GWW faces tariff, freight-cost, and valuation risk, while WSO faces margin-recovery uncertainty, housing sensitivity, and execution questions around its digital and acquisition strategies. For momentum-oriented and growth-focused investors, GWW's recent trajectory appears more favorable; for income-oriented investors tolerant of near-term margin pressure, WSO's yield may hold appeal.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings momentum, relative performance, and catalyst quality, Tickeron's AI would likely favor GWW over WSO in the current environment. Grainger has demonstrated more consistent upward price momentum, delivered consecutive quarters of double-digit growth, and raised forward guidance, all of which tend to signal stronger relative positioning. Watsco's higher yield and long-term digital potential are notable, but softer earnings, contracting margins, and weaker recent momentum present a less favorable near-term setup. This assessment is probabilistic and reflects current data rather than a definitive forecast of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is GWW is a StrongBuy and WSO is a Hold.
Momentum Indicator for GWW turns positive, indicating new upward trend
GWW saw its Momentum Indicator move above the 0 level on October 09, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 85 similar instances where the indicator turned positive. In 60 of the 85 cases, the stock moved higher in the following days. The odds of a move higher are at 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for GWW just turned positive on October 01, 2026. Looking at past instances where GWW's MACD turned positive, the stock continued to rise in 30 of 46 cases over the following month. The odds of a continued upward trend are 65%.
GWW moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for GWW crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +1.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where GWW advanced for three days, in 199 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
The Aroon Indicator entered an Uptrend today. In 104 of 232 cases where GWW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 45%.
Bearish Trend Analysis
The 10-day RSI Indicator for GWW moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 similar instances where the indicator moved out of overbought territory. In 19 of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at 45%.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GWW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 47%.
GWW broke above its upper Bollinger Band on October 12, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 6 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 21 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. GWW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: GWW's P/B Ratio (15.497) is very high in comparison to the industry average of (4.070). P/E Ratio (34.593) is within average values for comparable stocks, (0.373). Projected Growth (PEG Ratio) (1.712) is also within normal values, averaging (2.538). Dividend Yield (0.007) settles around the average of (0.467) among similar stocks. P/S Ratio (3.175) is also within normal values, averaging (3.013).
WSO's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for WSO moved out of overbought territory on October 26, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 instances where the indicator moved out of the overbought zone. In 27 of the 35 cases the stock moved lower in the days that followed. This puts the odds of a move down at 77%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 55 cases where WSO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WSO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
WSO broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on WSO as a result. In 55 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
The Moving Average Convergence Divergence (MACD) for WSO just turned positive on October 15, 2026. Looking at past instances where WSO's MACD turned positive, the stock continued to rise in 32 of 45 cases over the following month. The odds of a continued upward trend are 71%.
WSO moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WSO crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 73%.
Following a +4.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where WSO advanced for three days, in 238 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 123 of 186 cases where WSO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 66%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 60 (best 1 - 100 worst), indicating fairly steady price growth. WSO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.182) is normal, around the industry mean (4.070). P/E Ratio (25.990) is within average values for comparable stocks, (0.373). Projected Growth (PEG Ratio) (1.199) is also within normal values, averaging (2.538). Dividend Yield (0.043) settles around the average of (0.467) among similar stocks. P/S Ratio (1.587) is also within normal values, averaging (3.013).
The Tickeron Profit vs. Risk Rating rating for this company is 80 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WSO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock worse than average.
GWW | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 68 Overvalued | |
PROFIT vs RISK RATING 1..100 | 6 | 80 | |
SMR RATING 1..100 | 21 | 55 | |
PRICE GROWTH RATING 1..100 | 41 | 60 | |
P/E GROWTH RATING 1..100 | 12 | 59 | |
SEASONALITY SCORE 1..100 | 50 | 47 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WSO's Valuation (68) in the Building Products industry is in the same range as GWW (88) in the Wholesale Distributors industry. This means that WSO’s stock grew similarly to GWW’s over the last 12 months.
GWW's Profit vs Risk Rating (6) in the Wholesale Distributors industry is significantly better than the same rating for WSO (80) in the Building Products industry. This means that GWW’s stock grew significantly faster than WSO’s over the last 12 months.
GWW's SMR Rating (21) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (55) in the Building Products industry. This means that GWW’s stock grew somewhat faster than WSO’s over the last 12 months.
GWW's Price Growth Rating (41) in the Wholesale Distributors industry is in the same range as WSO (60) in the Building Products industry. This means that GWW’s stock grew similarly to WSO’s over the last 12 months.
GWW's P/E Growth Rating (12) in the Wholesale Distributors industry is somewhat better than the same rating for WSO (59) in the Building Products industry. This means that GWW’s stock grew somewhat faster than WSO’s over the last 12 months.
| GWW | WSO | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 45% | 4 days ago 77% |
| Stochastic ODDS (%) | 4 days ago 48% | 4 days ago 69% |
| Momentum ODDS (%) | 4 days ago 71% | 4 days ago 65% |
| MACD ODDS (%) | 4 days ago 65% | 4 days ago 71% |
| TrendWeek ODDS (%) | 4 days ago 61% | 4 days ago 67% |
| TrendMonth ODDS (%) | 4 days ago 59% | 4 days ago 60% |
| Advances ODDS (%) | 12 days ago 59% | 4 days ago 68% |
| Declines ODDS (%) | 6 days ago 47% | 6 days ago 71% |
| BollingerBands ODDS (%) | 4 days ago 46% | 4 days ago 74% |
| Aroon ODDS (%) | 4 days ago 45% | 4 days ago 66% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
GWW’s FA Score shows that 3 FA rating(s) are green while WSO’s FA Score has 0 green FA rating(s).
- GWW’s FA Score: 3 green, 2 red.
- WSO’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
GWW’s TA Score shows that 6 TA indicator(s) are bullish while WSO’s TA Score has 6 bullish TA indicator(s).
- GWW’s TA Score: 6 bullish, 4 bearish.
- WSO’s TA Score: 6 bullish, 4 bearish.
Price Growth
GWW (@Electronics Distributors) experienced а +0.69% price change this week, while WSO (@Electronics Distributors) price change was -6.01% for the same time period.
The average weekly price growth across all stocks in the @Electronics Distributors industry was +4.00%. For the same industry, the average monthly price growth was +1.08%, and the average quarterly price growth was +6.34%.
Reported Earning Dates
GWW is expected to report earnings on Nov 04, 2026.
WSO is expected to report earnings on Feb 17, 2027.
Industries' Descriptions
@Electronics Distributors (+4.00% weekly)Electronics distributors are companies that are involved in distribution of one or more of the following: electronic components, computer products/ peripherals and software products & services. Several electronics distributors are also becoming the point of contact for technical/pre- & post-sale support in many cases, in an attempt to bolster their position in the market. Tariffs and/or cross-border trade barriers are some of the potential threats to the electronics supply chain, but that could also potentially lead to re-directing to markets where tariffs/restrictions are lower depending on demand. The industry is also vulnerable in the event of economic slowdowns. Arrow Electronics, Inc., SYNNEX Corporation and Versum Materials, Inc. are some of the major electronics distributors in the U.S.
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GWW and
Correlation & Price change
A.I.dvisor indicates that over the last year, GWW has been loosely correlated with FAST. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if GWW jumps, then FAST could also see price increases.
WSO and
Correlation & Price change
A.I.dvisor indicates that over the last year, WSO has been loosely correlated with SITE. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if WSO jumps, then SITE could also see price increases.
| Ticker / NAME | Correlation To WSO | 1D Price Change % | ||
|---|---|---|---|---|
| WSO | 100% | +0.18% | ||
| SITE - WSO | 54% Loosely correlated | +0.14% | ||
| FERG - WSO | 52% Loosely correlated | -0.74% | ||
| CNM - WSO | 48% Loosely correlated | +0.25% | ||
| QXO - WSO | 48% Loosely correlated | -2.99% | ||
| BXC - WSO | 42% Loosely correlated | +0.98% | ||
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