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Best Industrial Distribution Stocks to Buy Now (2023)

Top industrial distribution stocks in 2023 ranked by overall Zen Score. See the best industrial distribution stocks to buy now, according to analyst forecasts for the industrial distribution industry.

According to Zen Score, the 3 best industrial distribution stocks to buy right now are:

Pool (NASDAQ:POOL) is the top industrial distribution stock with a Zen Score of 53, which is 11 points higher than the industrial distribution industry average of 42. It passed 20 out of 38 due diligence checks and has strong fundamentals. Pool has seen its stock return 6.48% over the past year, underperforming other industrial distribution stocks by -24 percentage points.

Pool has an average 1 year price target of $380.00, an upside of 8.88% from Pool's current stock price of $349.00.

Pool stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Pool, 42.86% have issued a Strong Buy rating, 14.29% have issued a Buy, 28.57% have issued a hold, while 14.29% have issued a Sell rating, and 0% have issued a Strong Sell.

Fastenal Co (NASDAQ:FAST) is the second best industrial distribution stock with a Zen Score of 51, which is 9 points higher than the industrial distribution industry average of 42. It passed 19 out of 38 due diligence checks and has strong fundamentals. Fastenal Co has seen its stock return 15.76% over the past year, underperforming other industrial distribution stocks by -15 percentage points.

Fastenal Co has an average 1 year price target of $56.75, an upside of 3.45% from Fastenal Co's current stock price of $54.86.

Fastenal Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Fastenal Co, 25% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Beacon Roofing Supply (NASDAQ:BECN) is the third best industrial distribution stock with a Zen Score of 50, which is 8 points higher than the industrial distribution industry average of 42. It passed 16 out of 33 due diligence checks and has strong fundamentals. Beacon Roofing Supply has seen its stock return 33.97% over the past year, overperforming other industrial distribution stocks by 3 percentage points.

Beacon Roofing Supply has an average 1 year price target of $90.67, an upside of 18.99% from Beacon Roofing Supply's current stock price of $76.20.

Beacon Roofing Supply stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Beacon Roofing Supply, 16.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 8 industrial distribution stocks that have issued dividends in the past year, the 3 industrial distribution stocks with the highest dividend yields are:

Msc Industrial Direct Co (NYSE:MSM) has an annual dividend yield of 3.24%, which is 1 percentage points higher than the industrial distribution industry average of 1.83%. Msc Industrial Direct Co's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Msc Industrial Direct Co's dividend has shown consistent growth over the last 10 years.

Msc Industrial Direct Co's dividend payout ratio of 48.5% indicates that its dividend yield is sustainable for the long-term.

Global Industrial Co (NYSE:GIC) has an annual dividend yield of 2.84%, which is 1 percentage points higher than the industrial distribution industry average of 1.83%. Global Industrial Co's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Global Industrial Co's dividend has shown consistent growth over the last 10 years.

Global Industrial Co's dividend payout ratio of 42.2% indicates that its dividend yield is sustainable for the long-term.

Watsco (NYSE:WSO) has an annual dividend yield of 2.54%, which is 1 percentage points higher than the industrial distribution industry average of 1.83%. Watsco's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Watsco's dividend has shown consistent growth over the last 10 years.

Watsco's dividend payout ratio of 64.2% indicates that its dividend yield is sustainable for the long-term.

Industrial distribution stocks were down -0.73% in the last day, and up 1.38% over the last week.

We couldn't find a catalyst for why industrial distribution stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued industrial distribution stocks right now are:

Dxp Enterprises (NASDAQ:DXPE) is the most undervalued industrial distribution stock based on WallStreetZen's Valuation Score. Dxp Enterprises has a valuation score of 71, which is 36 points higher than the industrial distribution industry average of 35. It passed 5 out of 7 valuation due diligence checks.

Dxp Enterprises's stock has gained 39.18% in the past year. It has overperformed other stocks in the industrial distribution industry by 9 percentage points.

Bluelinx Holdings (NYSE:BXC) is the second most undervalued industrial distribution stock based on WallStreetZen's Valuation Score. Bluelinx Holdings has a valuation score of 71, which is 36 points higher than the industrial distribution industry average of 35. It passed 5 out of 7 valuation due diligence checks.

Bluelinx Holdings's stock has gained 22.88% in the past year. It has underperformed other stocks in the industrial distribution industry by -8 percentage points.

Beacon Roofing Supply (NASDAQ:BECN) is the third most undervalued industrial distribution stock based on WallStreetZen's Valuation Score. Beacon Roofing Supply has a valuation score of 57, which is 22 points higher than the industrial distribution industry average of 35. It passed 4 out of 7 valuation due diligence checks.

Beacon Roofing Supply's stock has gained 33.97% in the past year. It has overperformed other stocks in the industrial distribution industry by 3 percentage points.