MSC Industrial Direct Company is an American company publishing the world’s famous catalog “The Big Book”. The company is the largest worldwide industrial equipment distributor. They offer more than 600.000 references over the United-States and United Kingdom for direct sales to customers. They managed 108 branch offices which offer 24 hours delivery everywhere in the US.

From fundamental viewpoint, the company founded in 1941 presents a strong profile. With a turnover growing about 13 to 20% per year since 2009. This one is expected at 2.3 billion dollars for 2012 and could bring net result at 259 million dollars compared with 219 million in 2011. Its profit Margin is important due to the distribution system. Net margin reached 11% for 2012 and should be approximately the same for next fiscal year. Price Earnings ratio stays reasonable at 16.7x the estimates for 2012.

Technically the stock is trading a relatively low price due to a sharp decline from USD 84.25 in March and April. Prices are close to 20-days moving average and the bearish trend of this indicator seems to run out of steam. A new bullish impulse could take place as soon as the security will cross the USD 69 level. The USD 68.3 mid-level could be used as support to avoid a pull back at USD 64.1.

Ours analysts advise investors to take a buy position with a target at USD 74 on MSC Industrial Direct after 20-days moving average crossing at USD 69. At this point, a stop loss will be engaged at USD 67 to avoid losses due to a possible decline.