MSC Industrial Direct (MSM) reported a 9.7% decline in August sales.

For the fourth quarter, sales declined 12.7%, while dipping 5.1% for the fiscal year that ended in August 2020. While the company will not report earnings until Oct. 27, MSM issued guidance that margins should perform as expected.

August results were better than expected and showed some improvement, which is encouraging. This positive news should continue if the economy keeps recovering.

Meanwhile, the stock is cheap at 13.8X depressed earnings, setting the shares up for a good recovery. MSM is a buy below $60. My $72 target could be raised if the economy remains strong.