Yahoo Finance Here's Why You Should Invest in Graco (GGG) Stock Now
Graco Inc. (GGG) stands to gain from the robust end-market activity and strong demand trends for new and existing products. Also, its diversified business structure with exposure to various end markets like general industrial, automotive, alternative energy, pharma, food & beverage, vehicle services, oil & natural gas, environmental & transportation, infrastructure and others helps offset weaknesses associated with a single market.
Let’s delve deeper to better understand why investing in this Zacks Rank #1 (Strong Buy) player is a smart choice now.
Brisk Segments: Graco’s Industrial segment is benefiting from robust product categories such as liquid finishing and sealant and adhesive equipment. A solid backlog in powder equipment systems also bodes well.
The Process segment is gaining from continued sales growth in vehicle service, industrial lubrication, process transfer pumps, environmental, and semiconductor. New product launches and robust project activity in lubrication, environmental and process pumps are also aiding the segment. Strength in pro paint and high-performance coatings and foam businesses are supporting the Contractor segment’s revenues.
Investments in Product Innovation: Graco’s policy of investing in product innovation and capacity expansion should fuel its growth. It anticipates capital expenditures of approximately $200 million with $130 million for facility expansion projects at its Minnesota, South Dakota, Switzerland and Romania facilities in 2023. As for innovation, ES 500 Stencil rig, LineLazer ES 500 electric battery-powered airless striper, Contractor King air-powered protective coatings sprayer and the Silver Plus HP spray guns, among others were introduced in 2022.
Rewards to Shareholders a Boon: Graco’s remunerated its shareholders with dividends of $142.1 million in 2022, reflecting an increase of 11.8% from the previous year. Share repurchases were $233.4 million in the year.
In the first three months of 2023, the company paid out dividends worth $39.4 million to its shareholders, up 10.1% from the year-ago quarter. It repurchased common stocks worth $7.8 million in the same period. In December 2022, the company hiked its quarterly dividend by 11.9% to 23.5 cents per share.
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Northbound Estimate Revision: In the past 60 days, the Zacks Consensus Estimate for 2023 earnings has been revised 10% upward. The stock has jumped 14.4%, compared with the industry’s 2.8% increase in the past six months.
Other Stocks to Consider
Some other top-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. IR presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks.
IR’s earnings surprise in the last four quarters was 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6%. The stock has rallied 8.8% in the past six months.
Alamo Group Inc. ALG presently sports a Zacks Rank of 1.ALG’s earnings surprise in the last four quarters was 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 16.8% in the past six months.
Parker-Hannifin Corporation PH presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 12.4%, on average.
In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 5.3%. The stock has gained 5.8% in the past six months.
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Parker-Hannifin Corporation (PH) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Alamo Group, Inc. (ALG) : Free Stock Analysis Report
