This Company Just Signaled Where the Industrial Economy Is Heading in 2024
Keep some powder dry and look to take advantage of stocks on a dip in the first quarter. That's one of the conclusions from looking at the latest results of MSC Industrial Direct (NYSE: MSM). The metalworking and maintenance, repair, and operations (MRO) products and services distributor's sales are a key barometer of the North American industrial sector. Its latest results contained a mix of warnings and opportunities for investors. Here's the lowdown.
I previously discussed the possibility for a spate of profit warnings in the coming earnings season, and MSC Industrial's earnings support that idea. It's one of three stocks to watch closely in January for a clue on current conditions in the economy.
Unfortunately, the report wasn't good. The company's fiscal first quarter of 2024 ended Dec. 2, 2023, and includes sales in September, October, and November. Back in the fourth quarter of 2023 earnings presentation in October, management told investors its average daily sales (ADS) grew 1.3% year over year in September and would be 1% to 2% in October.
Source Fool.com
