Grainger: Tooled Up for Growth

The Illinois-based industrial distributor has crafted strong expansion plans and is pruning costs. S&P gives the stock its highest rating

W.W. Grainger (GWW; recent price, $78) is a $6 billion global distributor of power and hand tools, pumps, janitorial supplies, and other products. This dominant distributor of facilities-maintenance supplies increased the number of products in its 2006 catalog by 40%, to more than 115,000. The company also offers 300,000 products from its Web site.

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