MSM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
MSC Industrial Direct Co Inc (MSM) is not a strong buy for a beginner investor with a long-term strategy at this moment. While the company shows modest financial growth and has bullish technical indicators, the lack of significant positive catalysts, neutral sentiment from insiders and hedge funds, and recent downgrades from analysts suggest limited upside potential in the near term. The stock is better suited for monitoring rather than immediate investment.
The technical indicators are moderately bullish. The MACD is positive and contracting, suggesting a potential continuation of the uptrend. The RSI is neutral at 50.876, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 85.337, and resistance is at 96.148. However, the pre-market price of 91.25 is close to the pivot level of 90.742, indicating limited immediate upside.
The company's Q1 financials show revenue growth of 4.01% YoY, net income growth of 11.11% YoY, and EPS growth of 12.05% YoY. The stock has a 7.74% chance of increasing in the next month based on historical patterns.
Analysts have downgraded the stock recently, citing valuation concerns and uninspiring volumes. Hedge funds and insiders are neutral, with no significant trading trends. Gross margin dropped slightly by -0.17% YoY, and there is no recent news or event-driven catalysts.
In Q1 2026, the company reported revenue of $965.68M (+4.01% YoY), net income of $51.80M (+11.11% YoY), and EPS of $0.93 (+12.05% YoY). However, gross margin dropped slightly to 40.66% (-0.17% YoY). The financial performance indicates modest growth but not enough to justify a strong buy.
Recent analyst ratings are neutral to slightly negative. JPMorgan downgraded the stock to Neutral with a price target of $95 (down from $96), citing valuation concerns and lack of meaningful impact from self-help initiatives. Baird also lowered its price target to $94 (from $98) while maintaining a Neutral rating.
