Can WW Grainger (NYSE:GWW) Sales Reacceleration Continue?

Sales for WW Grainger (NYSE:GWW) have been gradually improving, but the question, according to FBRi is whether or not the sales reacceleration can continue.

FBR says, "Consistent with our distributor survey published in early January, industrial distributor Grainger’s US sales reaccelerated in December with US daily sales up 14%, versus 10% in November and 8% in October. Operating EPS was solid at $1.83, versus FBR $1.71 and consensus $1.68 reflecting impressive operating leverage to higher volume.

"While it is still early in the year and we recognize the company does not have meaningful forward visibility given short-cycle mix, we think not increasing 2011 guidance could temper some of the 4Q blowout results driven enthusiasm. We note shares have rallied in the past two weeks and valuation is expensive.

FBR Capital reiterates a "Market Perform" on WW Grainger (GWW), which closed Tuesday at $132.56, losing $6.60, or 4.74 percent.