MSC Industrial Direct Co., Inc. (MSM) Stock Price & How to Invest
Last updated October 2026
Short answer
MSM is MSC Industrial Direct, which operates as MSC Industrial Supply Co.: a NYSE-listed distributor of metalworking tools and maintenance, repair and operations (MRO) supplies to North American factories and machine shops. In mid-October 2026 it is a ~$7.2 billion company trading near its 52-week high of ~$132, at roughly 30x trailing earnings, on the expectation that a new CEO's margin recovery keeps going as the price tailwind of the past year fades.
MSM stock price
As of 2026-10-16, MSC Industrial Direct Co., Inc. (MSM) last closed at $130.38, up 51.8% over the past year. Over the past 52 weeks it has traded between $81.08 and $132.58.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or MSC Industrial Direct Co., Inc.'s investor relations page. Walnut is informational, not investment advice.
What does MSC Industrial Direct Co., Inc. (MSM) do?
MSC Industrial Direct was founded in 1941 by Sidney Jacobson and is headquartered in Melville, New York, with a second head office in Davidson, North Carolina. It operates as MSC Industrial Supply Co. and distributes roughly 2.5 million products: cutting tools, measuring instruments, tooling components, abrasives, fasteners and production hardware, hand and power tools, safety and janitorial supplies, plumbing, electrical and material-handling products. Its historical identity is metalworking, the consumable tooling machine shops and manufacturers burn through every shift. On top of that it layers a service model of in-plant staff, vending machines and vendor-managed bins that put MSC inside customers' facilities. Customers range from small independent machine shops, which the company calls its Core Customer, to national manufacturing accounts and public-sector buyers. The fiscal year ends around the end of August, and fiscal 2025 net sales were ~$3.77 billion from more than 7,000 associates.
The 2026 story is a recovery under new management. Martina McIsaac, previously president and chief operating officer, became CEO on January 1, 2026, succeeding Erik Gershwind, who stayed on as non-executive vice chair. After about 13 months with an interim CFO, the company hired Rob Kuhns from TopBuild in September 2026. The fiscal third quarter (ended May 30, 2026) beat the company's own outlook: net sales rose ~7.8% to ~$1.05 billion as volumes returned to growth alongside price increases, gross margin held at ~41.1%, adjusted operating margin rose ~160 basis points to ~10.6%, and adjusted EPS climbed ~32% to ~$1.43. On October 14, 2026 the board raised the quarterly dividend ~2.3% to $0.89.
The shares have moved ahead of the results. At ~$129 in mid-October 2026 the stock is up roughly 64% from a 52-week low of ~$78.80 set on January 7, 2026 and sits close to the ~$132.33 high reached on October 2. The bull case is that cost discipline, a stronger Core Customer business and a U.S. manufacturing recovery can lift margins toward those of Grainger and Fastenal. The bear case is that much of 2026's growth was tariff-driven price that will be lapped, leaving a cyclical distributor priced at a premium to its own history. Fiscal fourth-quarter results on October 22, 2026, against guidance of 6.5% to 8.5% average daily sales growth and a 10.0% to 10.8% adjusted operating margin, are the next test.
What's driving MSC Industrial Direct Co., Inc. (MSM)?
1. Margin recovery and "doing more with less"
The clearest change in fiscal 2026 has been operating leverage. Third-quarter adjusted operating income rose ~27.5% to ~$111.2 million on sales growth of ~7.8%, an incremental operating margin of ~32%, and year-to-date adjusted operating margin reached ~8.9% against ~8.1% a year earlier. Gross profit grew ~8.2% to ~$430 million while operating expenses grew only ~3.6% to ~$324 million, which is the cost discipline the CEO describes as doing more with less. Management said there is "further room to improve" its cost structure. Whether that leverage holds once sales growth slows, and whether fiscal 2027 targets imply further margin expansion beyond the ~10.0% to 10.8% fourth-quarter guide, is the central question for the next year.
2. The Core Customer and National Accounts
Management singled out the Core Customer, the smaller and mid-sized manufacturers and machine shops that buy at better margins, as outperforming the company overall for several quarters, and National Accounts showed notable improvement in the third quarter. That mix matters because Core business carries higher margins and was where MSC lost share during the 2023 to 2025 slowdown, when the company reworked its sales coverage and web experience and saw volumes fall. Rebuilding seller coverage, pricing tools and digital ordering for these customers is the main growth initiative under McIsaac. Continued Core outperformance would support gross margin, which held at ~41.1% in the third quarter, even if pricing with large national accounts gets tighter over time.
3. Price, tariffs and the coming comparison
A meaningful share of 2026 sales growth came from price, partly passed through as suppliers raised list prices in response to tariffs on imported tools and fasteners. Year-to-date sales were up ~5.0% to ~$2.93 billion, with growth accelerating as the year went on. The CEO said in July that continued progress "will be critical in the coming quarters as we begin to lap stronger benefits from price," meaning the year-over-year help from inflation fades as fiscal 2027 begins. The fourth-quarter guide of 6.5% to 8.5% daily sales growth still embeds that tailwind, so the fiscal 2027 outlook expected on October 22 is where the split between price and genuine volume growth should become visible.
4. In-plant solutions and the U.S. manufacturing cycle
MSC's vending machines, vendor-managed inventory and in-plant programs embed it in customer operations and make the relationship stickier than a catalog order. That positioning ties the company closely to U.S. industrial production across aerospace, defense, automotive and general machining. A sustained recovery in manufacturing activity, or reshoring of production into North America, would lift volumes across the customer base, and the installed base of in-plant programs gives MSC a share of that spend that a pure online seller lacks. The company also sells to government buyers. Cash generation funds the model: operating cash flow was ~$226 million in the first three quarters, against ~$64 million of capital spending and a full-year capex plan of ~$90 million.
What are the risks to MSC Industrial Direct Co., Inc. (MSM)?
MSC is a cyclical business. When factory activity and the ISM manufacturing index weaken, consumable tooling and MRO spend falls quickly, and the 2023 to 2025 period showed how fast margins compress when volumes decline against a largely fixed distribution cost base. The fiscal 2026 rebound leaned on price, so as tariff-related increases are lapped, growth could slow sharply unless underlying volumes keep improving, and gross margin could come under pressure if customers resist further increases or supplier costs rise faster than MSC can pass them through. Inventory rose ~$38 million in the first three quarters, which ties up cash if demand softens. Competition is intense from Grainger and Fastenal, which run at higher margins, and from Amazon Business and other online channels that compress pricing on commodity items. Leadership is new at the top: a CEO in her first year and a CFO who started in September 2026 will set fiscal 2027 targets. The company is also defending a 2025 New York state-court suit over the elimination of its dual-class share structure. Finally, at roughly 30x trailing earnings after a ~64% rise from the January low, and with a dividend payout ratio above 80%, the valuation leaves less room for a soft guide than it did a year ago.
What is the MSC Industrial Direct Co., Inc. (MSM) forecast?
8 analysts publish price targets on MSM, averaging $134.25 against a $130.38 price as of October 2026, or +3.0%. The published targets run from $67.00 to $155.00, a moderate spread, and the ratings split 4 buy, 6 hold, 1 sell. Over the last six months there have been 3 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full MSM forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is MSM a buy or a sell?
We give no verdict on MSC Industrial Direct Co., Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Margin recovery and "doing more with less". The clearest change in fiscal 2026 has been operating leverage. The most optimistic published target, $155.00, assumes this works close to its best case.
The case against. MSC is a cyclical business. The most pessimistic target, $67.00, is roughly what MSM is worth if this bites instead.
Read the full bull and bear case on MSM, including what would have to change to break either one. Walnut is not an investment adviser.
How is MSC Industrial Direct Co., Inc. (MSM) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see MSC Industrial Direct Co., Inc.'s investor relations page or your broker.
- Revenue (TTM, through Q3 FY2026): ~$3.91B
- Net sales (Q3 FY2026, ended May 30, 2026): ~$1.05B (+7.8% YoY)
- Adjusted EPS (Q3 FY2026): ~$1.43 (vs ~$1.08)
- Adjusted operating margin (Q3 FY2026): ~10.6% (vs ~9.0%)
- Market cap: ~$7.2B
- Dividend yield: ~2.8% (~$3.56 annualized after October 2026 raise)
At ~$129 the shares trade near ~31x trailing GAAP earnings and roughly ~30x trailing adjusted EPS of ~$4.33 (the ~$3.24 earned in the first three quarters of fiscal 2026 plus ~$1.09 in the fourth quarter of fiscal 2025), and about ~23x forward estimates, a premium to MSC's own history that prices in margin recovery. The balance sheet is conservative, with ~$507 million of total debt against ~$74 million of cash on May 30, 2026, and management targets ~95% free cash flow conversion for the year. Fourth-quarter results on October 22, 2026 will be compared with ~$978 million of sales and ~$1.09 of adjusted EPS a year earlier.
Who competes with MSC Industrial Direct Co., Inc. (MSM)?
Broadline MRO distributors
W.W. Grainger and Fastenal are the closest public comparables and both run at meaningfully higher operating margins than MSC: Grainger through scale and its high-touch plus endless-assortment model, Fastenal through its on-site and industrial vending network. Applied Industrial Technologies, Motion Industries (part of Genuine Parts), DXP Enterprises and Global Industrial compete for the same maintenance and production budgets, and sector valuations are usually set against Grainger and Fastenal.
Metalworking and fastener specialists
In cutting tools, abrasives and production fasteners MSC faces regional industrial distributors, Würth and its industrial units, and specialist fastener suppliers. Manufacturers such as Kennametal and Sandvik are mainly MSC suppliers but also sell direct to large customers, so the distributor's value has to come from breadth, technical application support and inventory management rather than simple access to the product.
Online and big-box channels
Amazon Business, Home Depot Pro and Lowe's Pro compete on price transparency and delivery speed for commodity MRO items, especially with smaller buyers. Their pressure is sharpest on the catalog-style business MSC was built on, which is one reason the company has leaned harder into in-plant programs, vending and technical metalworking expertise that are harder to replicate through an online storefront.
What stocks are similar to MSC Industrial Direct Co., Inc. (MSM)?
Other names that sit close to MSM: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in MSC Industrial Direct Co., Inc. (MSM)
There are three common ways to get MSM exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so MSM sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where MSM fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on MSC Industrial Direct Co., Inc. (MSM)
MSC is a cyclical, cash-generative industrial distributor whose shares have already rerated on a margin and volume turnaround, so the October 22, 2026 report and fiscal 2027 outlook test whether that recovery is durable.
More on MSC Industrial Direct Co., Inc. (MSM)
Whether MSM is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is MSM a buy or a sell?, and where the stock could go from here in the MSM stock forecast.
For income investors, whether MSM pays a dividend and how the payout looks is covered in does MSM pay a dividend? And to weigh MSM against a peer, read the full side-by-side comparisons: MSM vs FAST and MSM vs AIT.
Wondering how MSM fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in MSC Industrial Direct Co., Inc. with AI
Connect the broker you already use and ask Walnut's AI how MSM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
How do you invest in MSC Industrial stock?
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MSC Industrial Direct trades on the New York Stock Exchange under the ticker MSM, so any U.S. brokerage account that offers listed equities can hold it, including brokers that support fractional shares. There are roughly 56 million diluted shares outstanding, and at around ~$129 in mid-October 2026 the company is valued near ~$7.2 billion, which places it in mid-cap territory. Since the 2023 elimination of the founding family's high-vote Class B shares, there is a single class of common stock, so every share carries the same vote. MSM is also held inside many mid-cap, dividend and industrial-sector index funds and ETFs, which is an indirect way many investors end up owning it. The stock has a beta of ~0.8, meaning it has historically moved somewhat less than the broad market day to day, though its earnings are tied closely to the industrial cycle.
What does MSC Industrial actually sell?
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About 2.5 million industrial products, with a core in metalworking: cutting tools such as drills, end mills, taps and inserts, measuring instruments, tooling components and abrasives. Around that it sells fasteners and production hardware, hand and power tools, safety and janitorial supplies, plumbing, electrical and material-handling items. It also sells services, which are a large part of how it differentiates: in-plant staff who manage supplies on a customer's floor, industrial vending machines that dispense tools to workers, and vendor-managed inventory bins that MSC replenishes. Customers include small machine shops, large manufacturers across aerospace, automotive and general industry, and government buyers. Revenue comes from the margin between what MSC pays suppliers and what it charges customers, with gross margin running around ~41% in the latest reported quarter.
Why is it called MSC Industrial Supply now?
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The company operates under the brand MSC Industrial Supply Co., which it uses in press releases, marketing and its NYSE description, while the legal entity that files with the SEC remains MSC Industrial Direct Co., Inc. The ticker MSM did not change, and nothing about the shares themselves changed with the branding. The "Direct" in the original name came from the company's roots as a direct-mail catalog seller, when the thick MSC catalog was its main sales tool. The "Supply" name reflects the push to be seen as a technical partner and solutions provider to manufacturers, with in-plant programs, vending and metalworking application expertise, rather than a catalog. Investors searching for the company will find both names used interchangeably in filings, financial sites and brokerage apps.
Who runs MSC Industrial?
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Martina McIsaac became president and CEO on January 1, 2026, after serving as president and chief operating officer. She succeeded Erik Gershwind, a member of the founding Jacobson and Gershwind family, who remains non-executive vice chair of the board. Rob Kuhns joined from building-products installer TopBuild as executive vice president and CFO in September 2026, ending a stretch of about 13 months in which Greg Clark served as interim CFO; Clark stays on as vice president of finance and corporate controller. The new team's first full-year outlook is expected with fiscal fourth-quarter results on October 22, 2026, which makes that report a closer-watched event than usual. Director Louise Goeser has said she will not stand for re-election at the 2027 annual meeting, as part of her retirement planning.
When does MSC Industrial next report earnings?
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Fiscal 2026 fourth-quarter and full-year results are scheduled for October 22, 2026, with a conference call at 8:30 a.m. Eastern Time. Management guided to 6.5% to 8.5% year-over-year growth in average daily sales and an adjusted operating margin of 10.0% to 10.8% for the quarter. For the full year it maintained guidance of ~$90 million of capital spending, ~$100 million of depreciation and amortization and ~95% free cash flow conversion. The year-ago quarter produced ~$978 million of net sales and ~$1.09 of adjusted EPS, so those are the comparison points. The release is also expected to include the first fiscal 2027 outlook under the new CFO, which will show how management expects growth to hold up once tariff-related price increases have been lapped.
Does MSC Industrial pay a dividend?
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Yes. On October 14, 2026 the board raised the regular quarterly dividend ~2.3% to $0.89 per share, payable November 25, 2026 to holders of record on November 11. That is an annualized ~$3.56 and a yield of roughly ~2.8% at a ~$129 share price. The dividend has been raised each year recently, from $0.79 a quarter in 2023 to $0.83, $0.85, $0.87 and now $0.89. The payout ratio is above 80% of trailing earnings, which is high, though MSC's free cash flow conversion near ~95% of net income has covered it. In the first three quarters of fiscal 2026 the company paid ~$146 million in regular dividends and spent ~$14 million on buybacks, and it has paid special dividends in some past years.
Why has MSC stock risen so much in 2026?
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Shares are up roughly 64% from the ~$78.80 low of January 7, 2026, driven by evidence that the business turned after two difficult years of falling margins. Third-quarter results beat the company's own outlook, with sales up ~7.8%, volumes growing again alongside price, adjusted operating margin up ~160 basis points to ~10.6% and adjusted EPS up ~32% to ~$1.43. GAAP EPS rose ~41% to ~$1.44. A new CEO, visible cost discipline, outperformance in the higher-margin Core Customer business and hopes for a recovery in U.S. manufacturing all contributed to the rerating. Several analysts raised targets after the July report, with published targets ranging from ~$67 to ~$155, which shows how wide the range of views on the durability of the turnaround remains.
Is MSC Industrial stock a good investment?
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It depends on how the turnaround and the industrial cycle play out, and analysts are split: of about ten tracked ratings, three are buy, six hold and one sell, with a mean target of ~$131 against a ~$129 price. The bull case is that margins can keep expanding from ~10.6% toward the high-teens levels of Grainger and Fastenal, that the Core Customer recovery is real, and that a U.S. manufacturing upturn adds volume on top, all while the dividend keeps growing. The bear case is that 2026 growth leaned on tariff-driven price that is about to be lapped, that a new leadership team is unproven, and that at ~30x trailing and ~23x forward earnings the shares already price in much of the recovery. The October 22, 2026 outlook is the next data point for either side.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with MSC Industrial Direct Co., Inc.'s investor relations page or your broker before making investment decisions.